The fresh rally lifted the benchmark index TEDPIX 5,721.76 points or 2.92% to end trading at 201,805.9.
According to Donyaye Bourse analytical website, a flow of new liquidity was the main driving force behind the market boom.
New liquidity flowed to the capital market after investors were disheartened by the bearish trends in most parallel markets. Relative stability in the currency and gold markets has dented investor expectations about putting money in the two safe havens, according to Financial Tribune.
The average USD price in the previous fiscal (2018-19) grew 160% compared to a year before, registering unprecedented rates.
Returns in the gold market were higher in the previous fiscal, registering a 180% hike compared to a year ago.
Reports about the Central Bank of Iran’s decision not to raise interest rates were another factor that apparently is directing the bulk of bank deposits into the growing capital market.
CBI Governor Abdolnasser Hemmati announced last week the regulator plans to cut interest rates in the current fiscal as one of the measures to help lift the struggling domestic manufactures.
He denied any hidden benefit in raising interest rates for the lenders or the national economy. “In the present economic conditions increasing interest rates will not help. It would increase production costs,” he wrote in an Instagram post.
It merits mentioning that the CBI scrapped overnight interest rates on banking deposits last December and obliged banks and credit institutions to pay interest on a monthly basis.
Index Performance
Tehran Stock Exchange’s main index TEDPIX gained 5,721.73 points or 2.92% on Monday to end trading at 201,827.85.
More than 7.6 billion shares valued at 14.788 trillion rials ($108.9 million) changed hands for the day.
Trading at TSE and Iran Fara Bourse starts on Saturday and ends Wednesday.
Tejarat Bank was the biggest winner as its shares went up 29.34% to 454 rials per share.
Shahd Sugar Company incurred the biggest loss among all TSE-listed companies and went down 7.27% to 16,990 rials per share.
Tejarat Bank and Golgohar Mining and Industrial Company gave the biggest boost to the benchmark index, followed by Esfahan's Mobarakeh Steel Company and Pars Petrochemical Company.
Mobarakeh Steel Company is the largest steel maker in the MENA region and one of the largest industrial complexes in Iran.
Shahd Sugar Company contributed the most to the benchmark's fall, followed by Shiraz Petrochemical Company and Isfahan Sugar Company.
The Price Index gained 1,650.01 points to close at 58,194.2. First Market Index was up 4,675.70 points to post 151, 175.7. Second Market Index increased by 9,228.79 points to reach 390,029.8.
The Industry Index went up by 4,737. 6 points to register 181,647.6. Free Float Index was up 6,957.76 points to register 228,450.92.
The TSE 30 went up 355.01 points to settle at 10,019.5 and the TSE 50 ended 261.65 points to finish at 8,551.4.
IFX Up 1.83%
Iran Fara Bourse’s main index IFX gained 44.77 points or 1.83% to close Sunday trade at 2,496.68.
Over 1.9 billion securities valued at 6.5 trillion rials ($48 million) were traded at the junior exchange for the day.