11085
Wobbling Economy Drags Down TEDPIX
Economy, Business And Markets

Wobbling Economy Drags Down TEDPIX

Stocks thrashed amid lingering fears over the outcome of nuclear talks, and the limping economy, with the Tehran Stock Exchange (TSE)’s benchmark tumbling more than 1.4 percent during the week that ended February 10 compared to the prior trading week.
According to TSE data, despite Saturday’s fragile uptrend, losing streak dominated the equity market, with all indices settling in red, pushing the TEDPIX to pull back 931 points or 1.42 percent to settle at 64,840.9.
The first market index lost 725 points or 1.29 percent to end at 47,763.7. The second market index plummeted 1,574 points or 1.22 percent to finish at 127,536.4. The free float index dropped 1,288 points or 1.71 percent to stand at 73,839.60. The industry index retreated 615 points or 1.12 percent to 54,422.8. The blue chip index slipped 44 points or 1.49 percent to 2,903.9, and the financial index nosedived 3,941 points or 3.08 percent to end at 124,912, top weekly market losers.
The financial sector, which heavily weighs on the TSE, has dramatically plunged since the beginning of the year with almost 21.3 percent retreat. Respective corporations’ shares having hit their rock bottom values.
More than 2.6 billion shares were traded over the past week, worth almost 5.43 trillion rials. Trade volume and value registered 19.4 and 17.4 percent decline respectively in comparison with the previous trading week. The prevailing ambiguities have shed the number of traders at the equity market, with almost 16.6 percent decline.
 TSE in Review
The overall index posted almost 17.9 percent since the beginning of the year. The first market index slipped 18.5 percent, the second market index plunged 16.3 percent, and the financial index nosedived 21.3 percent. The free float index and the industry index also shed 18.7 and 17.3 percent respectively. The blue chip also dropped 22.8 percent to underscore the gloomy atmosphere hang over the industry.
The extension of nuclear talks between Iran and the P5+1 slashed investors’ expectation, and was accompanied by persistent freefall at the equity market, though the Price Earnings ratio (P/E) notched a dramatic record low.
Despite the massive devaluation, both individual and institutional investors are still afraid to garner securities that have hit bottom values and are even below their nominal price.
With sever western sanctions imposed over the past few years on financial sectors, the performance of giant listed industries at the equity market including petrochemicals, and minerals are tied to Foreign Direct Investment (FDI). Failing to clinch a comprehensive nuclear deal will eventually trim expectations on the FDI. Hence, prevailing uncertainties are making investors search for rival markets as safe havens for investment.
Tumbling oil prices and mining royalties have also imperiled relevant industries, which weigh on the TEDPIX. Other companies that are not directly associated with the oil prices have also been affected by the gloomy prospect of the economy in the mid run.
The government’s practical steps to revive the dented sentiment of the stock market has also failed to give a boost to the listed companies’ performance.

Short URL : http://goo.gl/V7WpQw

You can also read ...

Iran Missing Advantages of Foreign Banks’ Presence
Tehran Chamber of Commerce, Industries, Mines and Agriculture...
Oman Eyes Iran Market Amid Rising Imports
Ithraa, Oman’s inward investment and export promotion agency,...
Luxgen’s S3 is a 5-seater subcompact sedan equipped with a 1.6-liter, 116 hp gasoline engine.
Local company Arman Motor Kavir is set to unveil two imported...
Iran Exim Bank Tapping NDFI Resources
Export Development Bank of Iran–the country's exim bank–is to...
Transport MoU With South Korea
Iran and South Korea have signed a memorandum of understanding...
Billet and bloom shipments made up the bulk of exports, reaching 1.78 million tons, up 28% year-on-year.
Iran’s semi-finished steel exports during the first seven...
Local producers have often called  on the government to increase import tariffs on tires.
In order to “protect domestic production”, the Industries...
IRIB Mulls Issuing Bonds
The Islamic Republic of Iran Broadcasting is considering...

Trending

Googleplus