Iran's main stock market rose on Wednesday, after investors' enthusiasms for bank and auto stocks along with foreign exchange rate rises helped to lift the market and pare Tuesday's losses.
Enthusiasm for auto stocks early in the day gave way to demand for bank stocks, which led to half of the market's liquidity move toward lenders by the close of the session. Among them, Bank Mellat and Tejarat Bank have won the most favor from investors.
As reported by the Donyay-e-Bourse (an analytical website owned by the parent company of Financial Tribune), the extraordinary demand for bank shares, driven by prospects of capital increase in the wake of their asset revaluation, is fueling concerns among analysts that the reckonings are overoptimistic given the structural problems of the banking system.
Despite clarion calls by the government to reform the banking sector, many lenders are saddled with unhealthy balance sheets and non-performing loans.
Indexes' Performance
Tehran Stock Exchange’s main index TEDPIX gained 1493.42 points or 0.95% on Wednesday to end trading at 158,443.7.
More than 4 billion shares valued at 11.25 trillion rials ($97.86 million) changed hands at TSE for the day.
Trading at TSE and Iran Fara Bourse starts on Saturday and ends Wednesday.
Iran Tractor Manufacturing Company was the biggest winner as its shares went up 8.91% to 3,422 rials per share.
Pars Tile Company incurred the biggest loss among all TSE-listed companies and went down 4.99% to 7,077 rials per share.
Pars Petrochemical Company and Bank Mellat gave the biggest boost to the benchmark index, followed by Isfahan Oil Refining Company.
Jam Petrochemical Company contributed the most to the benchmark's fall, followed by Bank Saderat Iran and Golgohar Mining and Industrial Company.
The Price Index gained 434.21 points to close at 46,058.8.
The First Market Index was up 1,171.72 points to post 116,543.7. Second Market Index increased by 2,633.03 points to reach 316,522.0.
The Industry Index went up by 1,355.72 points to register 142,146.7. Free Float Index gained 1,906.65 points to hit 172,037.30.
The TSE 30 went up 88.08 points to settle at 7,756.2 and the TSE 50 ended 66.16% points lower to finish at 6,823.2.
At the over-the-counter market, Iran Fara Bourse’s main index IFX gained 16.36 points or 0.09% to close Wednesday trade at 1,836.84.
Over 920 million shares and securities valued at $28 million were traded at the junior exchange for the day.
