Tehran stocks made rare gains on Sunday after new volatility in the currency market boosted prospects for future hike in share prices and investors turned to stocks as safe havens.
The benchmark of Tehran Stock Exchange recorded a solid 3.5% hike for the day, gaining more than 17,000 points on Sunday-- 1,000 points shy of the critical level of 500,000 points.
Out of a total of 312 active symbol tickers on Sunday, 306 closed in the green zone, accounting for 98% of active companies, according to Donyaye Bourse website.
Stocks continue to rally despite risks that the outbreak of coronavirus and the decision of the Financial Action Task Force to blacklist Iran may pose to businesses.
The market has so far emerged apathetic toward such risks and keeps soaring, riding on the power of new liquidity and ever-increasing number of new investors.
Market analysts relate new rallies to the hike in foreign currency rates. Rise in currency rates increases inflationary expectations and pushes people to buy shares to avoid deprecation of their rial assets.
The US dollar was traded above 154,000 rials on Sunday, up more than 7% compared with Thursday’s close.
Market Performance
The TSE's main index TEDPIX gained 17,106.47 points, or 3.55%, on Sunday to end trading at 498,904.5.
About 5.68 billion shares valued at 42.86 trillion rials ($280.14 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Iran Ferrosilice Company was the biggest winner as its shares went up 11.32% to 20,468 rials per share.
Agricultural Services and industries Development Company incurred the biggest loss among all TSE-listed companies and went down 3.82% to 42,295 rials per share.
Agricultural Services and industries Development Company contributed the most to the benchmark's fall, followed by Esfahan Saman Gostar Company, Fars Cement Company and Piazar Agro-industrial Company.
Mobarakeh Steel Company gave the biggest boost to the benchmark index, followed by Pars Petrochemical Company, National Iranian Copper Industries Company and Tamin Petroleum and Petrochemical Investment Company.
IFX Up 4%
The main index of Iran Fara Bourse, IFX, also gained 249.14 points, or 4.01%, to close Sunday trade at 6,462.46.
About 2.37 billion securities valued at 40.58 trillion rials ($265.23 million) were traded at the over-the-counter exchange for the day.
Esfahan Steel Company had the highest number of traded shares as 448.15 million of its shares worth 1.37 trillion rials ($8.95 million) were traded.
Asia Seir Aras Company was the only company with the negative impact on IFX.
Esfahan Steel Company gave the biggest boost to IFX, followed by Goharzamin Iron Ore Company, Middle East Mines and Mineral Industries Development Holding Company and Zagros Petrochemical Company.
