Tehran Stock Exchange (TSE) recorded a seesaw trading day at Wednesday’s close, with most of the indices pushing the TEDPIX to stay in green territory.
Ambiguities trimmed the early rally at the final hours of trading day, with the overall index notching up 18.9 points or 0.03 percent to settle at 64,014.9.
According to the TSE data, the first market index rose 52.1 points or 0.11 percent to stand at 47,520.5. The second market index, as the only negative contributor to the TEDPIX tumbled 214.6 points or 0.17 percent to finish at 123,510.4. The free float index was up 163.4 points or 0.22 percent to stand at 73,272.3. The industry index ticked up 9.2 points or 0.02 percent to end at 53,518.8, and the blue-chip index also edged up 3 points or 0.01 percent to 2,867.3
More than 593 million shares changed hands, valued at almost 1.24 trillion rials, which indicates a fresh downtrend both in trade volume and value.
Islamic Republic of Iran Shipping Lines registered the highest contribution to the benchmark. Mobile Telecommunication Company of Iran and Mobarakeh Steel Companywith, with close to 23 and 13 points took the second and third place respectively.
Persian Gulf Petorochemical Industries Company, with the highest market cap, had the most negative impact on the TEDPIX. Parsian Oil and Gas Development Company, and National Iranian Copper Industries Company, with about 14 and 11 points downbeat performance, took the second and third place respectively in pushing the TEDPIX down.
Lack of practical triggers at the equity market is still weighing on the unsettled investors’ sentiment, curbing the enthusiasm among investors even for garnering shares at rock-bottom values, with no end in sight to lingering uncertainties surrounding the listed companies at the TSE. The ongoing nuclear talks between Iran and the P5+1 is considered to be the main driver behind the TSE’s sentiment, as it hold the key to brining back bulls to the stock market, however other triggers may briefly impact the benchmark.
Most market analysts believe that the equity market has great potential due to its historic low levels, with the Price Earnings (P/E) ratio of most listed firms at rock bottom.
The ongoing nuclear negotiations’ positive signals is enticing international portfolio managers, investment banks, and frontier market investors to mull over pouring cash to Iran’s untapped capital market.
Despite the fact that Iran’s oil-based economy has been hit hard by the oil price free fall, dissolution of western sanctions, including banking embargos, are expected to result in a substantial change in listed companies’ performance, while a variety of financial instruments such as mergers and acquisitions can revive suffocated industries.
