Tehran Stock Exchange hit the unprecedented level of 350,000 points on Wednesday amid demand for shares of banks and commodity companies.
The main gauge of TSE added more than 3,400 points for the day to push TEDPEX 1% higher as liquidity flowed from small companies to bigger stakeholders.
Thanks to the inflow of cash, there was demand largely for petrochemical, metals, refinery, mineral and bank stocks. This is while smaller listed companies were hit by selloff.
The equal-weighted index, which is usually higher than the main index, was lower on Wednesday at 0.6%, indicating poor performance of SME stocks.
The index is a type of weighting that gives the same weight, or importance, to each stock and the smallest companies are given equal weight as the largest ones.
Market analysts ascribe the change in investors’ appetite for bigger companies to the general price rise in the global commodity markets.
The bullish trend is also partly attributed to investors’ optimism toward monthly financial record of listed companies as the end of current calendar month (on Dec. 21) approaches.
Market Performance
The TSE's main index TEDPIX gained 3,451.90 points, or 1%, on Wednesday to end trading at 350,322.6.
About 5.06 billion shares valued at 25.82 trillion rials ($200.20 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Tehran Stock Exchange was the biggest winner as its shares went up 5% to 19,720 rials per share.
Hormozgan Cement Company incurred the biggest loss among all TSE-listed companies and went down 4.74% to 9,394 rials per share.
Iran Khodro Company (IKCO) contributed the most to the benchmark's fall, followed by Islamic Republic of Iran Shipping Lines Company, Tamin Petroleum and Petrochemical Investment Company and Iran Transfo Corporation.
Persian Gulf Petrochemical Industries Company gave the biggest boost to the benchmark index, followed by Mobarakeh Steel Company, Esfahan Oil Refining Company and Omid Investment Management Group Company.
The Price Index gained 924.55 points, or 1% to close at 93,823.4.
The First Market Index increased 2,675.83 points, or 1.08% to post 250,444.8. Second Market Index increased by 6,270.31 points, or 0.86% to reach 731,189.3.
The Industry Index increased by 2,682.98 points or 0.86% to register 313,622.0. Free Float Index was up 4,306.23 points to hit 415,795.19.
TSE 30 gained 169.70 points to settle at 14,651.9 and the TSE 50 ended 154.51 points higher to finish at 13,275.6.
IFX Ends Flat
Iran Fara Bourse main index IFX gained 3.42 points or 0.08% to close Wednesday trade at 4,531.53.
About 2.12 billion securities worth 13.96 trillion rials ($108.25 million) were traded at the over-the-counter exchange for the day.
Esfahan Steel Company had the highest number of traded shares as 163.30 million of its shares worth 335.54 billion rials ($2.60 million) were traded.
Kowsar Insurance Company, Jahrom Power Plant Development Company, Marun Petrochemical Company and Esfahan Steel Company had the most negative impact on IFX.
Iran Office Machines Industries Company gave the biggest boost to IFX, followed by Hormozgan Steel Company, Pasargad Oil Company and Iran Fara Bourse Company.
