Stocks closed mostly higher on Tuesday, Tehran Stock Exchange's main gauge, TEDPIX, rebounding to snap a two-day losing streak, on the back of newly released earnings reports by companies.
TEDPIX gained 736.28 points or 0.44% on Tuesday to end trading at 167,199.8 , still a far cry from when the market bordered on the record high of 200,000 point in early fall.
The heavy losses of the past days have seemingly emboldened the more risk-taking investors who are finding walloped stocks more appealing. Tuesday's gains were fairly broad-based and included refinery, petrochemical, metal and mineral stocks.
Stocks of companies that have more domestic demand will increase their appeal to investors
Better-than-expected earnings results by firms, especially steel companies, in spite of US sanctions, boosted investor sentiment.
Shahin Cheraghi, a market analyst and Chairman of Board of Directors at Mehr Afarin Brokerage Firm, told the Financial Tribune that in the middle term, some hurdles in the way of export-oriented companies, whose exports need special shipping methods, like methanol, will face hurdles.
"These stocks are likely to face trouble as the US restrictions toughen and ways to circumvent them become harder," Cheraghi said.
In his view "Stocks of companies that have more domestic demand will increase their appeal to investors like food and pharmaceutical stocks."
Share of export companies made significant gains in the past months due to the fall in the value of rial.
In the long-term, however, Cheraghi said since the liquidity pressure has not yet cooled, it is likely that this will bolster the forex and gold markets which in turn will give a boost to the equity market.
Indexes Performance
Tehran Stock Exchange’s main index gained 736.28 points or 0.44% on Tuesday to end trading at 167,199.8
About 1.26 billion shares valued at $ 56.61 million changed hands at TSE for the day.
Trading at TSE and Iran Fara Bourse starts on Saturday and ends Wednesday but the market was closed Sunday on the occasion of the birthday of the Prophet Mohammad (PBUH) – a public holiday in Iran.
Iran Carbon Co (ICC) was the biggest winner as its shares went up 5% to 10,794 rials per share. According to the company's website, ICC and its affiliate companies are the biggest distributors of carbon black industry in the national market and have the second place for production capacity in the region.
They also are active in the tire and ribbon industries. Due to the fall in the value of rial and dwindling imports, there has been a huge shortfall in the supply of tires as prices mount.
Damavand Mining Company incurred the biggest loss among all TSE-listed companies and went down 4.95% to 27,074 rials per share.
Persian Gulf Petrochemical Industries Company gave the biggest boost to the benchmark index, followed by Pars Petrochemical Company and Mobarakeh Steel Company.
Jam Petrochemical Company contributed the most to the benchmark's fall, followed by Kharg Petrochemical Company and Bank Mellat.
The Price Index gained 214.43 points to close at 48,692.2
The First Market Index was up 453.30 points to post 123,273.3. Second Market Index increased by 1,900.16 points to reach 332,609.2
The Industry Index went up by 813.96 points to register 151,753.0. Free Float Index was up 613.73 points to hit 178,763.69.
The TSE 30 went up 35.76 point to settle at 8,300.9 and the TSE 50 ended 36.07 points higher to finish at 7,301.3.
IFX Up 0.87%
At the over-the-counter market, Iran Fara Bourse’s main index IFX gained 15.65 points or 0.87% to close Tuesday trade at 1,816.33.
About 589.28 million securities valued at $33.24 million were traded at the junior exchange for the day.
Iran Office Machines Industries (Maadiran Group) had the highest number of traded shares and trade value as 85.70 million of its shares worth $2.69 million were traded.
Iran Office Machines Industries, Shahed Development and Construction Company and Ghasem Iran Company (a consumer products distributor) registered the highest value increase.
Sabzevar Lar Cement Company (PLC), Kimia Zanjan Gostaran Company (producer of lead and zinc concentrate) and Asia Zarin Madan Co (also a producer of lead and zinc concentrate) suffered the biggest decline.
Zagros Petrochemical Company, Marun Petrochemical Company and Afa Iron &Steel Company had the most positive impact on IFX.
