Stocks swung into the black on Wednesday as investors heaved a sigh of relief after President Hassan Rouhani rejected Foreign Minister Javad Zarif’s resignation.
The main gauge on Tehran Stock Exchange rose 582.53 points or 0.35% to close at 165,294.7, recouping a portion of its heavy losses in the previous session.
TSE had turned bearish on Tuesday with the benchmark index TEDPIX losing 2,082.14 points or 1.25% after news about the resignation of the top diplomat and a close Rouhani confidante rattled the markets.
Rouhani rejected the veteran diplomat’s resignation on Wednesday, standing by his respected aide who was the top negotiator in the complex 2015 nuclear deal with the six world powers.
Zarif signed two agreements in Tehran with Armenia on Wednesday continuing his duties as the top diplomat. In a ceremony broadcast live on state TV, Zarif signed two agreements to expand cooperation between the two neighbors.
However as Donyaye Bourse website reported, demand for stocks was not very strong on Wednesday as investors preferred caution. Most of the demand was toward stocks of smaller firms especially those with better earnings reports.
Mining and Metals Development Investment Company, Bank Mellat, Chadormalou Industrial and Mining Company, and engineering and energy enterprise MAPNA Group had the biggest positive impact on the benchmark index.
The junior partner Iran Fara Bourse also soared 31.99 points or 1.55 % with Marun Petrochemical Company, Damavand Power Generation Company and Zagros Petrochemical Company having the biggest positive impact on IFX.
Markets rose at the outset of the week amid growing optimism about the global economy which led to a three-day winning streak until Monday. The key market gauge rose 128.84 points on Sunday and on Saturday TEDPIX grew 4,778.26 or 3.00% which was the biggest single-session point gain for TEDPIX in four months.
