With share prices touching support levels after nearly two weeks of correction as shown in the technical analysis, signs of recovery that reappeared Wednesday turned into a full rally at the start of trading week on Saturday.
The main index of Tehran Stock Exchange gained more than 34,900 points for the day, pushing the TEDPIX 3.7% higher, to close trading session at 973,495 points.
The rally that swept majority of shares was led by large-cap companies as indicated by a whopping 4.8% gain for the TSE-30 index, which tracks performance of the 30 listed companies with highest market capitalization.
Among the main companies that drove up the benchmark were giant petrochemical, base metal, refineries and mineral companies.
Being the first and the second largest companies listed with the TSE, Persian Gulf Petrochemical Industries Company and Mobarakeh Steel Company together added more than 5,000 points to the benchmark, accounting for 15% of the TSE’s main index growth.
Observers ascribe the new rallies to the perception among investors that share prices have dropped to the lowest level following a relatively deep correction stage, and the market is poised for a new rally as share prices are attractive enough to place buy orders.
There are reports that the market could improve further in the coming days in the run-up to the government’s second phase of divestiture plan, which involves selling its shares in several listed companies through exchange-traded funds.
In a talk with Persian economic daily Donya-e-Eqtesad, Mehdi Sasani predicted a lasting bull-market in the coming days as the government will continue promoting the stock market to sweeten the ETFs.
After ceding a portion of its shares in three banks and two insurance companies via an ETF in May, the government plans to launch a second phase of divestiture scheme on June 21 by offering shares in four refinery companies.
Market Performance
About 7.54 billion shares valued at 61.92 trillion rials ($360.05 million) changed hands at TSE for the day.
Pegah Esfahan Dairy Company was the biggest winner as its shares went up 6.8% to 38,612 rials per share.
Zamyad Company incurred the biggest loss among all TSE-listed companies and went down 5% to 11,061 rials per share.
Pars Khodro Company contributed the most to the benchmark's fall, followed by Saipa Investment Group Company, Bahman Group Company and Iran Khodro Investment Development Company.
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.
The Price Index gained 9,278.39 points, or 3.72% to close at 258,529.9. The First Market Index increased by 27,280.53 points, or 3.96% to post 715,852.5.
The Second Market Index went up 63,504.48 points, or 3.36% to reach 1,953,350.16. The Industry Index was up 30,600.29 points or 3.73% to register 850,214.24. The Free Float Index was up 45,634.76 points to hit 1,302,029.23.
TSE 30 went up 1,928.57 points to settle at 43,151.5 and the TSE 50 ended 1,491.71 points higher to finish at 36,198.08.
IFX Up 3.54%
Iran Fara Bourse main index, IFX, gained 384.2 points, or 3.54%, to close Saturday trade at 11,248.65.
About 1.83 billion securities valued at 31.87 trillion rials ($185.3 million) were traded at the over-the-counter exchange.
Jahrom Power Plant Development Company had the highest number of traded shares as 132.4 million of its shares worth 823.61 billion rials ($4.8 million) were traded.
Kerman Development Investment Company, Behpak Industrial Company and Afranet Company (a telecom service provider) had the most negative impact on IFX.
Gohar Zamin Iron Ore Company gave the biggest boost to IFX, followed by Marun Petrochemical Company, Middle East Mines and Mineral Industries Development Holding Company and Esfahan Steel Company.
