Tehran Stock Exchange’s volume and value surged to a new monthly high, while stocks briefly ticked lower within the week’s last trading day on Wednesday.
According to the TSE, the trading volume surpassed Tuesday’s volume as 1,372,605,590 shares changed hands, valued at about 1.6 trillion rials.
The TSE started with a downward trend, and swung to an uptrend, while the TEDPIX failed to close in green and was slightly down.
At the end of trading day, the first market index lost 52 points or 0.1 percent to 52,500.9. The second market index climbed 175 points or 0.12 percent to 142,667.7. The free floating index shed 75.6 points or 0.09 percent to 80,634.7. The blue chip index declined 3.2 points or 0.1 percent to 3,282.2, and the industry index inched down 26 points or 0.04 percent to close at 60,825.7.
Pasargad Bank shares stood at the top of the market for the second consecutive trading day. Besides, Persian Gulf Petrochemical Industry Company with a 28.66 percent left the most positive impact on the TEDPIX. Kharg Petrochemical Complex with a 31.98 percent negatively influenced the TEDPIX.
Despite the downbeat performance of the TSE’s main index, trade value and volume are likely to enjoy a consistent uptrend as market analysts believe investors are flocking back to the equity market.
“Block trades and the new supply of liquidity to the equity market, in addition to the mass purchase of the rock-bottom shares pushed up the volume and value to a new monthly high,” Ali Sahraie, the TSE market deputy told Financial Tribune in a phone interview.
The behavior of unsettled investors is one of the most crucial factors the TSE is grappling with. As most analysts believe, irrespective of the long term impact that a comprehensive nuclear agreement between Iran and the P5+1 may have on the TSE’s trades, the market already has various contributors that may practically change the current downward trend.
Although stocks hit rock-bottom, they are still worth investing in, but as long as the political and economic uncertainty dominates the equity market, it is less likely to see a consistent bullish trend in the TSE in the near future.
Since last year, the administration has put on the agenda talks with major world powers over Tehran’s nuclear energy program, an issue that has deterred the economy from achieving its potential. Soon after the last year’s interim agreement between Iran and the P5+1 last, the Iranian capital market surged to a new high though it later reversed down.
