Business And Markets

Stocks Hold Broad Rally

Stocks Hold Broad Rally
Stocks Hold Broad Rally

Stocks staged a broad rally on Sunday, continuing their move into positive territory during the course of the past few months, helping the TEDPIX gain 0.37 percent.

As stocks gradually recover from their deep losses generated from roller-coaster trading days in recent months, the Tehran Stock Exchange (TSE) has speeded up its upward trend.

According to the TSE's main website, all indices were in green with tepid gains, stimulating shaky investors to return their capital once again into the equity market.

The TSE's benchmark surged 264.5 points or 0.37 percent to end at 72,281. The first market index rose 192.7 points or 0.36 percent to 53,179.4. The second market index gained 534.3 points or 0.38 percent to dramatically shift its negative trading days on Saturday. The free floating index jumped 363.4 points or 0.45 percent to 81,625.3. The industry index pulled higher 226 points or 0.37 percent to 61,322.8 and the blue chip index went up 8.1 points or 25 percent to 3,300.1.

Trading volume and value significantly hiked, after more than 617 million shares changed hands on Sunday, valued at almost 1.8 trillion rials, indicating nearly 100 percent growth in trade volume as well as about 80 percent increase in trade value.

The highest growth on stocks' value was recorded for MAPNA Group, Islamic Republic of Iran Shipping Lines (IRISL) and Telecommunication Company of Iran, after they left the most positive impact on the TEDPIX.

Parsian Oil and Gas Development Company suffered from devaluation as it left the most negative impact on the stock market's overall index.

Auto manufacturers, financial groups and cement suppliers' shares were traded most frequently, as they had the highest trade volume recorded.

The TEDPIX has hiked around 0.7 percent within the past five consecutive trading days, highlighting the effectiveness of the administration's concrete moves aimed at reviving the capital market.

After Rouhani took office last summer, he pledged to bolster the country's weak economy—the legacy of the previous administration and severe Western sanctions.

The government unveiled its plan of action to help the country step out of the recession about two months ago. Furthermore, the Securities and Exchange Organization (SEO) has already revealed its strategic plan, which emphasizes on the practical strategies to bolster the capital market.

As market analysts had predicted, those initial changes in policy did not suffice to help industry recapture lost ground in the short run.

As companies are about to reveal their six-month reports, the slight economic growth and the government's plan of action to exit recession have already started to show their impact on the companies' performance.

The Rouhani government's policies over the past twelve months is starting to bear fruit as the companies listed on the TSE are showing signs of steady growth again.

It has become evident that the equity market needs concrete and tangible stimulators as it can act as one of the main driving forces in the economy once sanctions against Iran further relax.