After tumbling near psychological levels in two successive sessions, the benchmark of TSE made history on Saturday to comfortably climb above 1,000,000 points.
It was the TSE’s all-time record in 53 years. The Tehran Stock Exchange began operations in 1967.
TSE’s market-cap weighted index, TEDPIX, gained 4.3% on the first day of the Iranian week by adding an unprecedented 42,294 points and closed session at 1,020,217.
The rallies are driven by a combination of factors, the most important being the full support of the government in tandem with systematic efforts to encourage more investors to come to the fast-pacing market.
Observers say the government needs a thriving stock market for a variety of reasons. It has launched a plan to divest its shares in 18 companies that are listed with bourse via three exchange-traded funds and urged the public to buy.
In addition, by keeping the stock market buoyant and attracting bigger numbers, the government aims to prevent rampant liquidity flowing into parallel markets to avoid runaway inflation.
This invigorating climate is always overshadowed by concerns from assorted quarters over the unreasonable and unjustified surge in market indicators because it is incompatible economic reality.
This invigorating climate is always overshadowed by concerns from assorted quarters over the unreasonable and unjustified surge in market indicators
Addressing market analysts’ concerns, the managing director of Securities and Exchange Organization Hassan Qalibaf-Asl said “fate of the stock market is contingent upon future developments”. He did not elaborate.
Criticizing those who “question the growth in the capital market,” he said stock market authorities are indeed striving to expand the market. However, “investors should accept the responsibility of their investment”, ISNA reported.
“Stock market has become a haven for the people’s investment,” he said, adding that fresh liquidity entering the market has provided an opportunity for listed companies to raise capital.
“If this money is channeled into other directions, it will create (more) inflation,” he said, referring to assorted parallel markets, namely forex, gold, auto and real estate.
Retail investors injected 22 trillion rials ($137 million) into the bourse on Saturday, according to Boursepress news website.
Market Performance
About 6.59 billion shares valued at 101.01 trillion rials ($635.33 million) changed hands at TSE for the day.
Persian Gulf Fajr Energy Company was the biggest winner as its shares went up 12.21% to 29,184 rials per share.
Hamadan Glass Company incurred the biggest loss among all TSE-listed companies and went down 3.71% to 41,909 rials per share.
Kharazmi Investment Group Company contributed the most to the benchmark's fall, followed by Hamadan Glass Company, Mellat Insurance Company and AzarAb Industries Company.
Mobarakeh Steel Company gave the biggest boost to the benchmark index, followed by Persian Gulf Petrochemical Industries Company, Pars Petrochemical Company and National Iranian Copper Industries Company.
IFX Up 3.26%
Iran Fara Bourse main index IFX gained 364.11 points, or 3.26%, to close Saturday trade at 11,513.87.
About 2.4 billion securities valued at 44.9 trillion rials ($282.62 million) were traded at the over-the-counter exchange for the day.
Jahrom Power Plant Development Company had the highest number of traded shares as 315 million of its shares worth 2.13 trillion rials ($13.45 million) were traded.
MAPNA Asaluyeh Power Generation Company, Melal Credit Institution, Alborz Distribution Company and Kish Parsian Electronic Commerce Company had the most negative impact on IFX.
Saba Tamin Investment Company gave the biggest boost to IFX, followed by Middle East Mines and Mineral Industries Development Holding Company, Shahid Tondgooyan Petrochemical Company and Esfahan Steel Company.
