TSE’s main gauge, TEDPIX, gained more than 39,000 points for the day, a figure unseen in the history of Iran’s bourse. Saturday’s gain sent the benchmark 4.48% higher and trade ended at 917,405 points.
While market analysts voice concern about the odd growth in share prices, the stock market keeps rising with new investors every day.
Stock prices head upward as ever-increasing investors bring fresh liquidity to a market that is becoming more and more fragile amid mounting warnings of an imminent bursting of the bubble. Novice investors are simply not interested in the warnings and seem to be emboldened by the government’s repeated backing for the bourse.
Over the past months, retail traders have had the upperand in the market. They grab all the shares offered by institutional investors.
Lower interest rates on bank deposits plus soaring inflation, restrictions on gold and foreign currency trade and a prolonged recession in the real estate market has encouraged investors to embrace the bourse.
Market experts reckon a combination of huge losses incurred on businesses due to coronavirus and mounting restrictions on foreign trade due to the US sanctions, as factors threatening the economy, which, by extension would impact the performance of listed companies.
Market Performance
The TSE's main index, TEDPIX, gained 39,304.69 points, or 4.48%, on Saturday to end trading at 917,405.96.
About 4.69 billion shares valued at 71.27 trillion rials ($453.95 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Shahid Ghandi Corporation Complex was the biggest winner as its shares went up 36.42% to 117,960 rials per share.
Persian Gulf Petrochemical Industries Company gave the biggest boost to the benchmark index, followed by Mobarakeh Steel Company, National Iranian Copper Industries Company and Social Security Investment Company.
None of the listed companies had negative impact on the benchmark.
The Price Index gained 10,456.33 points, or 4.48% to close at 244,059.80. The First Market Index increased by 26,838.73 points, or 4.31% to post 649,691.66.
The Second Market Index went up 87,419.07 points, or 4.71% to reach 1,944,081.02.
The Industry Index was up 33,977.28 points or 4.39% to register 807,506.62. The Free Float Index was up 51,862.54 points to hit 1,156,496.0.
TSE 30 went up 1,497.92 points to settle at 37,284.57 and the TSE 50 ended 1,405 points higher to finish at 34,043.68.
IFX Up 4.01%
Iran Fara Bourse main index IFX gained 412.83 points or 4.01% to close Saturday trade at 10,699.62.
About 1.59 billion securities valued at 39.02 trillion rials ($248.55 million) were traded at the over-the-counter exchange for the day.
Jahrom Power Plant Development Company had the highest number of traded shares as 209.52 million of its shares worth 1.28 trillion rials ($8.19 million) were traded.
Middle East Mines and Mineral Industries Development Holding Company gave the biggest boost to IFX, followed by Saba Tamin Investment Company, Shahid Tondgooyan Petrochemical Company and Zagros Petrochemical Company.