S tocks gained more with the major indices ending in green on the week’s first trading day on Saturday, helping the TEDPIX to record a new high within the past 5 months.
According to the TSE’s website, the Tehran Stock Exchange witnessed its 7th consecutive positive trading day, after its benchmark rose 253.9 points or 0.33 percent to settle at 76,420.5.
Considering the recent bullish trend at the stock market, and a positive atmosphere created by the possibility of a comprehensive nuclear agreement between Iran and the P5+1, investors’ sentiment toward the equity market has turned buoyant.
Market’s major indices contributed to the uptrend, while the blue chip index failed to make its share to push the TEDPIX up.
The first market index gained 133.3 points or 0.23 percent to 76,420.5. The second market index rose 853.4 points or 0.59 percent to end at 146,518.4. The free floating index climbed 198.9 points or 0.23 percent to 88,217.3. The industry index was up 248 points or 0.39 percent to finish at 63,649, while the blue chip index was the only market laggard and slipped 3.2 points or 0.09 percent to 3,549.1.
Investors’ expectations toward the prospect of future performance of national industries have altered, stimulating a dramatic surge in market liquidity. The recent shift of liquidity from other competing markets to the equity market has resulted in a persistent growth in the TSE’s trading volume and value.
Based on TSE data, more than 1.16 trillion shares were traded at the TSE, valued of over 2.86 trillion rials, demonstrating a tepid growth compared to the prior trading day.
Saderat Bank had the most volume of trades, as a big group of its shareholders sold off their shares to impede losing on downward trend of the shares, after the company’s stocks initiated erasing the recent gains.
Tejarat Bank had the second highest trade volume, although despite Saderat Bank, it had a positive impact on the TEDPIX with a 21.34 percent.
Saipa, one of the leading car manufacturers, stood third and contributed with a 21.72 percent to the upward trend of the TSE’s gauge.
Telecommunication Company of Iran (TCI) had a stellar trading day thanks to the announcement of the merger of a giant subsidiary company, which grabbed the attention of investors.
Tamin Petroleum and Petrochemical Investment Company (TAPPICO) ranked the second positive contributor to the Saturday’s upsurge.
Market Expectations
Most market investors believe that now is precisely the right time to start digging around for earnings, as the recent economic and political upbeat news has shaken the gloom hanging over the stock market.
On the other hand, investors are digesting buoyant semi-annual reports of the listed companies; those demonstrating acceptable performances in various industries within the ailing economy.
Various indicators are portraying a brighter outlook for the economy, which would contribute to a bustling stock market, as well as new record highs.
However, market analysts are addressing potential hazards that may affect the bullish trend of the stock market. Following the tendency of competing markets’ investors toward investing in the equity market, large amounts of money have been poured into the TSE as it’s expected to bring them more money than other markets, while failing to manage the new injected liquidity may lead to an abrupt end to the TSE roller coaster in the near future.
Iran’s Privatization Organization has launched new series of block offerings of some giant government owned companies. These units will be up for bids to institutional investors, and then they will be split up to be offered to the individual investors.
Some of the market activists claim that the massive offerings will take the liquidity off the capital market, which may take the TSE back to its bearish trend period within the past couple of months.
The capital market has been growing and unsettled investors are back, so the TSE is back on track. Since the stability could not be considered a permanent phase, investors are strongly recommended to behave cautiously for the time being.
To conclude, the TEDPIX may decidedly peak new highs for the next couple of days before the beginning of the last round of nuclear talks ahead of the November 24 deadline.
