Stocks rallied amid growing enthusiasm for small stocks and correction in prices of a number of large-cap shares, particularly in refinery, petrochemical and mineral companies, according to Financial Tribune.
The main gauge of the Tehran Stock Exchange, TEDPIX, added over 6,600 points to close session at unprecedented level of 478,756.
The upbeat performance of small companies pushed up the equal-weighted index far above the TEDPIX on Wednesday. The index, which gives the same weight to all shares irrespective of their market cap, registered a daily 2.3% growth.
Market observers ascribe the rallies in part to soaring currency prices. Volatility in currency market traditionally impacts the price of a wide range of shares, especially those of export-oriented companies.
The US dollar was worth 144,400 rials in Tehran’s open market on Tuesday, up 2,500 rials compared to an earlier session. Currency rates remained largely unchanged on Wednesday.
Soaring currency rates boost the prospect of rise in share prices in the future. Currency rates affect share prices both via asset revaluation of listed companies and anticipated inflation.
Increasing the number of new investors in tandem with inflow of fresh liquidity has also been seen as an important factor behind incessant rallies in recent past, which has made correction in share prices very short-lived.
Out of 20 trading sessions since the beginning of the current calendar month (Jan.21), barely four sessions ended in negative territory.
Market Performance
The TSE's main index TEDPIX gained 6,635.28 points, or 1.41%, on Wednesday to end trading at 478,755.7.
About 5.13 billion shares valued at 38.75 trillion rials ($276.8 million) changed hands for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Shahed Investment Company was the biggest winner as its shares went up 7.21% to 3,404 rials per share.
Isfahan Cement Company incurred the biggest loss among all TSE-listed companies and went down 4.39% to 61,674 rials per share.
Mines and Metals Development Investment Company contributed the most to the benchmark's fall, followed by Golgohar Mining and Industrial Company, Omid Investment Management Group Company and Informatics Services Corporation.
Pars Petrochemical Company gave the biggest boost to the benchmark index, followed by Ghadir Investment Company, Tehran Oil Refining Company and Khorasan Steel Company.
The Price Index gained 1,770.18 points, or 1.41%, to close at 127,721.2.
The Industry Index increased by 5,916.09 points, or 1.40%, to register 429,635.1. The Free Float Index was up 9,355.52 points to hit 579,675.23.
TSE 30 gained 152.74 points to settle at 19,644.0 and the TSE 50 ended 171.11 points higher to finish at 18,005.6.
IFX Up 1.48%
Iran Fara Bourse main index IFX gained 90.42 points, or 1.48%, to close Wednesday trade at 6,206.67.
About 1.91 billion securities valued at 18.52 trillion rials ($132.28 million) were traded at the over-the-counter exchange for the day.
Esfahan Steel Company had the highest number of traded shares as 201.74 million of its shares worth 573.23 billion rials ($4.09 million) were traded.
Zagros Petrochemical Company, Middle East Mines and Mineral Industries Development Holding Company, Goharzamin Iron Ore Company and Khazar Sea Shipping Lines Company had the most negative impact on IFX.
Marun Petrochemical Company gave the biggest boost to IFX, followed by Hormozgan Steel Company, Iran Office Machines Industries Company and Iran Fara Bourse.