Economy, Business And Markets

TEDPIX Notches Up

TEDPIX Notches UpTEDPIX Notches Up

The Tehran Stock Exchange (TSE)’s gauge briefly rebounded at Monday’s close to change the equity market’s dented sentiment, with all indices settling in green.

TSE data illustrated that the TEDPIX edged up 46.9 points or 0.07 percent and ended at 63,853 to record its first uptrend in the week. The first market index notched up 14.1 points or 0.03 percent to reach 47,375.6. The second market index rose 228 points or 0.19 percent to stand at 123,366. The free float index ticked up 17.4 points or 0.02 percent to settle at 72,939.6. The industry index stepped up 42.3 points or 0.08 percent to 53,404.6, and the blue-chip index was up 2 points or 0.07 percent to end a sluggish trading day at 2,854.3.

Both trade volume and value remained relatively flat, with almost 315 million shares changing hands, valued at around 706 billion rials.

Islamic Republic of Iran Shipping Lines (IRISL) with 43.21 points in positive contribution surpassed all other listed companies at Monday’s trading. Ghadir Investment Company (GIC) and Persian Gulf Petrochemical Industry Company (PGPIC) followed IRISL with nearly 39 and 16 points respectively.

Mobile Telecommunication Company of Iran was the biggest market laggard, while Golgohar Mining and Industrial Company, and Tamin Petroleum & Petrochemical Investment Company took the second and third places respectively, weighing on the benchmark with 13.27 and 9.72 points in negative contribution.

The banking sector outperformed other listed industries for the day, with more than 74 million shares changing hands, valued at about 63 billion rials.

 Block Trade

Saderat Bank managed to execute a block sale of more than 3.46 trillion GIC shares at the TSE, valued at more than $335 million; however, Tejarat Bank and Refah Bank fell short of selling Mobarakeh Steel Company’s hoard of securities,    boursepress reported.

Despite a one-hour interruption in trading system, the GIC’s shares were offered at the base price of around 9.7 cents. According to the report, payment terms demanded 15 percent payment in cash, and the rest in installment. The cash is to be settled within 9 working days.

Although the length and depth of the bear market has been significant, considering unofficial speculations regarding the possibility of a nuclear accord to be reached between Iran and the P5+1 ( five permanent members of the UN Security Council plus Germany), most market analysts are expecting a breathtaking surge if and when an agreement is achieved; however, other dismal factors including the sagging global economy, Iran’s prevailing recession, and tumbling oil prices are not expected to vanish any time soon.  

Most investors resort to speculations in a bid to partly recover their losses or evade the negative impacts of the TSE’s bearish sentiment.

The art of speculating covers a wide range of trading tactics, including pairs trading, swing trading, employing hedging strategies and recognizing chart patterns. Speculators are often skilled at fundamental analysis, including spotting over- or under-valued companies, the amount of short interest a company holds, and analysis of earnings and other SEC statements.