TEDPIX Snaps  Losing Streak at TSE
Economy, Business And Markets

TEDPIX Snaps Losing Streak at TSE

Tehran Stock Exchange (TSE)’s overall index snapped 3 days of losing streak at Saturday’s close, after Brent crude oil prices hit their highest level so far this year.
Most indices settled in green on Saturday, and pushed the TEDPIX to rebound, however, TSE’s shaky uptrend is expected to be a response to the oil price jump to over $60 for the first time in 2015, after collapsing to $45 last month from the high of $115 last summer.
Because the equity market hosts oil-based companies, the oil price free fall was accompanied by massive retreat at the TSE within the past few months.
The upward oil price fluctuations is set to give a boost to the stock market; however, tiny gains are unlikely to wipe out heavy losses, as the equity market is still grappling with bearish trend.
TSE data illustrate that most indices had a positive contribution to the benchmark. The TEDPIX gained 91.2 points or 0.14 percent to end at 64,932.1. The first market index was up 117.3 points or 0.25 percent to 47,881. The second market index slipped 149.1 points or 0.12 percent to 127,386.9. The free float index pulled higher 222.9 points or 0.3 percent to settle at 74,062.7. The industry index rose 52.3 points or 0.1 percent to stand at 54,475.1, and the blue chip index edged up 4 points or 0.14 percent to end at 2,907.9.
The brittle atmosphere at the equity market along with rock bottom prices barricade trade volume and value, as unsettled investors are not convinced to get rid of shares in their portfolios, and instead, they avoid shoring up their portfolios.
Both individual and institutional investors eye bullish trend, which is likely to prevail as soon as Iran and the P5+1 agree to clinch a nuclear accord. Until then ambiguities are reigning over the prospect of talks.
More than 536 million shares changed hands, valued at almost 976 billion rials. Trade volume and value registered close to 25 and 35 percent decline respectively.
Saipa Diesel Company had the most volume of trade, although it registered a flat trading day. Bahman Group took the second place. Bahman Group also topped the TSE’s trade value, and the Oil Industry Investment Company stood next.
Kharg Petrochemical Company with almost 21 points topped the positive contributors. Mapna Group and Pension Fund, with almost 17, and 13 points took the second and third place respectively.
Petrochemicals mostly had lucrative trades due to the oil price jump, though Persian Gulf Petrochemical Industry Company, which has the most market value among all listed firms at the TSE, with almost 8 points negative contribution weighed on the TEDPIX.
Market analysts recommend investors to resort to long-run investment approach and hedge their bets over a basket of markets. Price swings at the equity market may keep dragging down shares’ values; however, it is expected to witness an upward trend in the long run.

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