Business And Markets

Stocks Pull Back After Consistent Rallies

Stocks Pull Back  After Consistent Rallies
Stocks Pull Back  After Consistent Rallies

Major indices failed to stay in green territory on Wednesday, with the TEDPIX ending lower on a seesaw trading day following 10 days of steady rallies at the Tehran Stock Exchange (TSE).

The equity market’s benchmark recorded a downward trading day, while both trading volume and value had a considerable growth compared to the prior trading day.

According to the TSE’s website, the TSE’s gauge tumbled 118.6 points or 0.15 percent to stand at 76,589.4. The first market index slipped 166.5 points or 0.32 percent to 56,765. The second market index, as the only positive one, managed to gain 288.7 points or 0.19 percent to settle at 148,378.7. The free floating index was down 284.1 points or 0.66 percent to 88,129.9. The industry index revised down from Tuesday’s 0.06 percent to a negative 0.05 percent on Wednesday to finish at 63,814.5, and the blue chip index lost 23.4 point or 0.66 percent to end at 3,526.8.

More than 1.169 trillion shares were reportedly traded at the TSE, valued at almost 3 trillion rials, demonstrating a bustling trading day at the equity market, though they failed to help lift the TEDPIX to record another positive trading day.

Pasargad Bank topped the trading volume as a big bunch of its shares changed hands, helping the benchmark with a 22.2 percent positive impact. Rena Industrial Group Investment Company took the second place, and Khorasan Steel Company ranked third.

Tose-e Melli Group Investment Company topped other listed companies and helped lift the TEDPIX by a 29.63 percent.

  IPOs at Equity Market

As was predicted by market analysts, Ghasem Iran Company’s Initial Public Offerings (IPOs) saw investors lining up to sell off shares and embark on buying the company’s shares. The GIC is strongly estimated to be a high-yielding company.

Ghasem Iran is one of the leading consumer products distributors in Iran. It was established in 1959, as Minoo Industrial Group’s affiliated company.

As the market liquidity has surged to new highs, with the TSE’s buoyant market, IPOs help bolster the economy.

As was announced earlier, new IPOs will be launched within the coming days. This has already grabbed the attention of individual and institutional investors to shore up their portfolios with the lucrative IPOs.

 OTC Market Cap at New High

The Initial Public Offering (IPO) of two giant companies at Iran Fara Bourse or over-the-counter (OTC) market led the market cap to surge to 1.18 trillion rials, a new record high, OTC’s public relations reported on Wednesday. Bahman Leasing and Ghasem Iran Company (GIC)’s IPOs left a significant impact on the OTC market, as the GIC’s major shareholder offered 5 percent of the company’s share, worth 10,000 rials per share.  

Market investors are gearing up to elevate their trades, and snap up bargains as speculations have it that a comprehensive agreement between Iran and the P5+1 on Iran’s nuclear program is imminent, although any mixed news about the atmosphere of the talks could spur concerns among investors.