Business And Markets

SEO Chief: Market Back on Track

SEO Chief: Market Back on TrackSEO Chief: Market Back on Track

An investment license has been issued by the head of the Securities and Exchange Organization (SEO) for a European company to invest over $20 million in Iran's capital market, Ali Salehabadi, head of the SEO told MNA on Tuesday.

There has been significant rise in the number of foreign companies that approach the SEO in a bid to invest in the Tehran Stock Exchange, which is seen as one of the leading emerging frontier markets in the world, market analysts believe.

"Following the recent move for increasing economic transparency, a large group of foreign investors are mulling over investing in Iran's securities exchange, and some have already applied to get the required licenses," Salehabadi stated.

IPOs Back at Equity Market

The SEO is considering launching of the Initial Public Offerings (IPOs) once again both at the Tehran Stock Exchange (TSE) and over-the-counter market (OTC), as the lucrative offerings are very likely to grab the attention of both individual and institutional investors in the presently bullish market, Salehabadi announced.

"As the market has gotten back on track in the past two months, going through a period of stability, the first IPO was launched on Tuesday at the TSE," Salehabadi underlined, adding that "more IPOs are on the way including a new one on Wednesday".

Salehabadi went on to say that the average market cap of both the Tehran Stock Exchange and the OTC surged to nearly 5 trillion rials, indicating that the equity market has been strengthened, while the refineries ticker symbols remain closed.  

TES Uptrend on Tuesday

The TSE's main index (TEDPIX) kept paring losses on Tuesday, notching new record highs within the past five months, after some pretty encouraging news came out of the ongoing talks between Iran and the P5+1 over the latter's nuclear program on Monday night.

According to the TSE's data, the trend for all indices was positive, helping the TEDPIX to hit a new high. As market analysts predict, the stock market is likely to witness even more rallies in the coming days.

The TSE's gauge rose 147.2 points or 0.19 percent to settle at 76,708. The first market index climbed 105.6 points or 0.19 percent to end at 56,931.5. The second market index finished in green, as it gained 307.7 points or 0.21 percent to 148,090.7. The free floating index pulled higher to recover is losses on Monday, rising 235.2 points or 0.27 percent to 88,414. The industry index in line with other indices edged higher 40.8 points or 0.06 percent to 63,849, and eventually, the blue chip index was up 5.7 points or 0.16 percent to 3,550.2.

The week's penultimate trading day recorded the exchange of more than 995 million shares at a buoyant equity market, valued at 2.4 trillion rials, slightly less than the prior day.

Investors have been snapping up bargains within the past two weeks as a result of the recent exuberant market mood. Auto makers and financial groups keep grabbing the top places of the trading volume and value among all the listed industries.

Saipa recorded the highest volume of trades thanks to the reports on an unprecedented surge on the company's market cap. Karafarin Bank stood second on Tuesday.

Persian Gulf Petrochemical Industry Company's shares continued to post gains, leading the contribution to the TEDPIX's upsurge. Tejarat Bank and Saderat Bank were other positive contributors to the market's benchmark, after groups of individual and institutional investors lined up to buy their shares.

The TSE has garnered most positive economic headlines recently, as the stability in the market, coupled with a new injection of liquidity to the capital market, totally amended the downward trend, which had persisted in the equity market since last winter.

Those stocks that had hit the rock-bottom value to some extent are uncovering their hidden potentials, surging up to new levels, convincing unsettled investors to diversify and shore up their portfolios.