The Tehran Stock Exchange’s (TSE)’s overall index ended a sloppy session only slightly higher than its previous day, with the Mobile Telecommunication Company of Iran (MTCI) leading the gains at Tuesday’s close.
The uncertainties reigning over the equity market kept dragging down the benchmark; however block offerings at the final trading hours pushed the TEDPIX to recover some of the losses to briefly settle in green after 3 days.
In the absence of practical solutions to put an end to the bearish sentiment at the equity market, the stocks are waxing and waning, and the investors are flocking to the rival markets or safe havens like banks, which guarantee 22 percent interest rate for annual fixed deposits.
According to TSE data, the TEDPIX edged up 13.7 points or 0.02 percent to end at 65,127.8. The first market index ticked up 17.4 points or 0.04 percent to finish at 47,929.8. The second market index slipped 21 points or 0.02 percent to 128,397. The free float index gained 53.22 points 0.07 percent to stand at 73,565.1. The industry index was down 61.8 points or 0.11 percent to 54,794.3, and the blue chip index notched up 1.3 points or 0.04 percent to 2,932.5.
The Financial Tribune analysis indicates that 54 percent of the firms weighed on the TEDPIX; however 38 percent contributed positively and settled in green, with the remaining 6 percent experiencing a flat trading day.
More than 376 million shares changed hands, valued at almost 653 billion rials, to record a downtrend in trade value.
The MTCI performed well with almost 54 points contribution to the benchmark. Mellat bank and Tejarat Bank, contributing almost 37 and 12 points respectively, took the second and third places.
Islamic Republic of Iran Shipping Lines was the biggest market laggard with close to 38 points negative contribution to the benchmark. National Iranian Copper Industries Company and Mobarakeh Steel Company also weighed heavily on the overall index.
An array of poor data and gloomy economic outlook in light of the tumbling oil price and global slowdown keep stoking fear among investors, portraying nothing but more volatility ahead.
The government and parliament’s practical steps such as reducing the mining royalties by 5 percent and giving a boost to the petrochemical sector by assuming the responsibility of feedstock pricing failed to alter the TSE’s dented sentiment; however they led to a slight uptrend for a few days. As market analysts emphasize, it is unlikely to expect the prevailing bullish trend to go away as long as the economy is grappling with sanctions over Tehran’s nuclear program. The performance of all listed companies is tied to the global oil price and the lifting of sanctions. Hence, a dissolution of ambiguities is not expected in a blink of an eye.
