Economy, Auto

Auto Shares Boost TSE

Auto Shares Boost TSEAuto Shares Boost TSE

Iran's auto sector has begun to shake up the country's Tehran Stock Exchange, according to a new report from a local brokerage firm.

According to Firouzeh Asia, this week Iranian and foreign investors witnessed more volatility in automotive shares due to news and rumors about developments in the sector.

Earlier this week, it was announced that Crouse Company, the car spare parts producer, had bought 62% of Bahman Group through its sub-companies for $460 million.

The company reports that there are also rumors about Crouse’s intention to develop its position in the industry, reportedly aiming to become a major shareholder of SAIPA Group.

Moreover, an official announcement about a contract between SAIPA Group and Citroen was also anticipated. It had been heard that this contract would be finalized soon, though nothing was announced officially this week.

On the TSE’s trading board, the automotive sector was the market leader and recorded its highest weekly gain in two months.

The report adds that Iran Khodro Group, Iran's largest and oldest carmaker, was the top performer in the top 30 companies on the trading board.

SAIPA Group, Iran's second biggest carmaker, also saw strong performance in the past few days, notching $90 million in traded shares and registering a 14.5% rise.

According to Industry Index Information board, the automotive sector witnessed a 7% change in shares, closing at 21,178, according to the finance group.