The Tehran Stock Exchange (TSE) witnessed a fresh uptrend at Saturday’s close, thanks to positive contribution of giant companies, to cling to its recent winning streak.
Most companies posted a 4 percent growth due to the lineups at the equity market, which can be considered as a sign of recovery at the stock market.
Market analysts believe the clarification of listed companies’ performance after the release of their three-quarterly reports and the recent oil price surge have contributed to the positive atmosphere of the TSE.
Oil prices surged by nearly $4 a barrel in late trade on Friday, rebounding from six-year lows, AFP reported.
According to TSE data, the TEDPIX rose 288.5 points or 0.44 percent to settle at 65,544.6. The first market index gained 220.3 points or 0.46 percent to 48,252.1. The second market index climbed 517.6 points or 0.4 percent to 129,117.6. The free float index pulled higher 537.7 points or 0.73 percent to stand at 74,420.8. The industry index gained 122.3 points or 0.22 percent to end at 54,905.1, and the blue chip index also was up 8.5 points or 0.29 percent to 2,941.
Despite the benchmark’s rally, investors were unwilling to get rid of their shares, as most of them have been grappling with massive losses in the past 4 months. Hence, the TSE posted a regular low trade volume of trade, with more than 557 million shares changing hands, valued at almost 1 trillion rials.
Pension Fund, Insurance Industry Investment Company, and Saderat Bank had the most trade volume. Moreover, Pension Fund, Iran Khodro, and the Insurance Industry Investment Company, recorded the most trade value among all listed firms at the TSE.
High yielding companies’ shares are rebounding after a series of massive retreats over prevailing ambiguities at the equity market.
Saderat Bank, as one of the companies that have had price crash on their shares, is getting back on track, with almost 36 points positive contribution to the benchmark. Mapna Group and Tejarat Bank took the second and third place respectively.
As market analysts believe, when the overall index is buoyed somehow by manipulation, the country risks galloping inflation, and various political and economic indicators stoke concern among investors, so a variety of factors should be taken into consideration to have profitable trade at the equity market.
Even when it comes to buying high yielding companies’ shares, various implications should be precisely analyzed. Cash Value Added (CVA) is one of the key indicators. The CVA can help fundamental investors evaluate how well a company can meet its cash flow needs over time. High CVA numbers are an indication of efficient operations, profitability and liquidity.