Lingering ambiguities at the Tehran Stock Exchange (TSE) pushed stocks to fluctuate during Sunday’s trading, with the benchmark limping to end flat.
After the TEDPIX’s rally on Saturday, the overall index wrapped a seesaw trading day flat at Sunday’s close to underline immediate triggers to keep TSE on track.
According to TSE’s data, the benchmark inched up 2.9 points to settle at 65,545.7. The first market index gained 33.7 points or 0.07 percent to end at 48,283.9. The second market index lost 201.1 points or 0.16 percent to stand at 74,463.6. The free float index notched up 44.8 points or 0.06 percent to 74,463.6. The industry index edged up 9.3 points or 0.02 percent to 54,893.3, and the blue chip index pulled back 0.8 point or 0.03 percent to finish at 54,893.3.
TSE data illustrated that more than 634 million shares changed hands, valued at more than 1 trillion rials. Despite a brief surge in trade value, trade volume posted close to 17 percent growth.
Rayan Saipa Company had the most volume of trade due to its shares’ value uptrend on Sunday. The Insurance Industry Investment, and Saderat Bank took the second and third place respectively, however, Saderat Bank negatively weighed on the TEDPIX.
Mapna Group had the most contribution to the benchmark. Mobarakeh Steel Company, and Sina Bank with almost 16 and 7.5 points positive contribution, pushed up the TEDPIX to green territory.
The Islamic Republic of Iran Shipping Lines (IRISL) witnessed selloff, and was named as the most crucial market laggard, with more than 20 points negative contribution to the benchmark. Mine and Metals Development Investment Company, as well as National Iranian Copper Industries Company stood next to the IRISL.
Mid-Run Investment Approach
The stock market is like a roller coaster, though various indicators may contribute to the benchmark, pushing it up and down. Hence, a proper shares picking strategy is key to keep gaining at the equity market.
Money managers are viewing the volatility as a signal that it is time to go shopping. If the goal is still long term, then investors are not supposed to panic, however the type of correction should always be precisely analyzed. Sometimes, the correction is normal, healthy and natural for the market, though long-run retreats indicate that gloom is prevailing the economy.
The Price Earnings (P/E) ratio of 90 companies at the TSE is already below 5, which indicates that the earnings of firms in comparison with banking interest rates are guaranteed, said Maziar Fathi, a market analysts to SENA, adding that “long term approach is the right choice for investors.”
At a time when the economy is wobbling, and tumbling oil price is adding to the concern, the massive retreat could be considered a normal reaction to the prospect of economy, however, the dented sentiment is unlikely to worsen.