Stocks in bank, auto, tire and IT companies contributed most to the rise.
A member of the board of the director of TSE ascribes the persistent rallies in the stock market to the inflow of the new liquidity, lower return in parallel markets and a general price rise in most of the listed companies’ products, Financial Tribune reported.
“Parallel markets are no longer attractive for investors and low interest rates on bank deposits are not encouraging either for investors involved in the money market,” the Persian-language newspaper ‘Iran’ quoted him saying.
TEDPIX registered 23.2% growth since the beginning of the current fiscal (started March 21) compared to the last trading day of the previous fiscal. During the same period, the main index of Iran Fara Bourse, the junior stock market, registered 17% return to stand at 2,643 points on the final trading day Wednesday.
However, the Donyaye Bourse website is skeptical about the continuation of the upward trend in the near future, saying time is ripe for the stock market to enter a correction phase after consecutive rallies.
Looking back when the market experienced several bullish sessions, the stock market’s analytical website says the upbeat trend will be off the track in the midterm amid excessive selloffs and investors’ competition to reap the benefits.
TSE Performance
Tehran Stock Exchange’s main index TEDPIX gained 4,480.64 points or 2.04% on Saturday to end trading at 224,589.6.
More than 6.4 billion shares valued at 16.05 trillion rials ($108.84 million) changed hands for the day.
Trading at TSE and Iran Fara Bourse starts on Saturday and ends Wednesday.
Iran Tile Company, specializing ceramic products, was the biggest winner as its shares went up 7.15% to 9,751 rials per share.
Tehran Cement Company incurred the biggest loss among all TSE-listed companies and went down 4.99% to 8,091 rials per share.
TCC produces construction materials including cement and bricks in Iran.
Mobarakeh Steel Company gave the biggest boost to the benchmark index, followed by Khouzestan Steel Company (KSC), Omid Investment Management Group Company and Tamin Petroleum and Petrochemical Investment Co. (TAPPICO).
TAPPICO is active in the value chain of oil and gas and petrochemical industries.
Persian Oil and Gas Development Group Company (P.O.G.D.C) contributed the most to the benchmark's fall followed by Tehran Cement Company, Shiraz Petrochemicals Company, and Tehran Oil Refining Company.
The Price Index gained 1,291.39 points (2.04%) to close at 64,725.7.
First Market Index was up 3,504.89 points (2.12%) to post 168,841.9. Second Market Index increased by 7,986.84 points (1.89%) to reach 431.242.8.
The Industry Index went up by 3,697.40 points (1.86%) to register 202.313.4. Free Float Index was up 5,471.83 points to register 253,526.25.
The TSE 30 went up 193.07points (1.79%) to settle at 10,956.4 and the TSE 50 gained 168.51 points (1.82%) lower to finish at 9,444.0.
Iran Fara Bourse’s main index IFX rose 0.83% to close Saturday trade at 2,665.07 points.
Over 2.22 billion securities valued at 8.24 trillion rials ($55.87 million) were traded at the junior exchange for the day.
Performance of Int’l Markets
European shares ticked higher on Friday, helped by gains among banks and Germany’s sportswear giant Adidas, one day after the regional index suffered its worst loss in six weeks.
The pan-European STOXX 600 index closed up 0.4%, rising up to 0.6% before trading back at mid-day levels. On the week, the index fell 0.2% after two week of gains.
In the US, the Dow Jones Industrial Average rose 197.16 points to 26,504.95, while the S&P 500 rose nearly 1% to 2,945.64, posting its biggest gain since April 1.
Stocks in Asia Pacific were mixed on Friday. The Hang Seng index in Hong Kong was 0.29% higher in afternoon trade. In South Korea, the Kospi declined 0.74% to close at 2,196.32, as shares of industry heavyweight Samsung Electronics slipped 1.31%.
Australia’s ASX 200 finished its trading day marginally lower at 6,335.80. Markets in Japan and China were closed for holidays.