The TEDPIX’s fresh rally at Wednesday’s close encouraged investors to grab the opportunity and shore up their portfolios with stocks that have hit rock bottom amid lingering uncertainties surrounding the equity market.
Investors seems to be mulling over flocking back to the equity market, amid unofficial positive speculations about a potential nuclear accord between Iran and the world six powers, which would usher in the comeback of bulls.
All indices contributed to the benchmark’s consistent uptrend on Wednesday with the second market index leading the gains.
The TSE data illustrated that the overall index rose 217.9 points or 0.34 percent to settle at 64,070.7. The first market index pulled up 107.6 points or 0.23 percent to end at 47,444.6. The second market index climbed 779 points or 0.63 percent to stand at 124,394. The free float index was up 215.6 points or 0.3 percent to 72,911.6. The industry index notched up 178.2 points or 0.33 percent to finish week’s last trading day at 53,612.5, and the blue-chip index gained 11.2 points or 0.39 percent to 2,862.2.
Giant petrochemical companies outperformed at Wednesday trading, with three of them lifting the TEDPIX with almost 170 points in positive contribution.
Persian Gulf Petrochemical Industry Company (PGPIC), once again, surpassed all listed companied at the TSE, and topped the list of TEDPIX positive contributors. Parsian Oil and Gas Development Company, and Tamin Petroleum & Petrochemical Investment Company with close to 52 and 32 points took the second and third place respectively.
Iron ore suppliers were the most crucial market laggards. Golgohar Mining and Industrial Company (GMIC), the largest iron ore supplier in Iran had a downbeat performance, and dragged down the benchmark with almost 41 points in negative contribution. Chadormalu Mining and Industrial Company, which is the third giant iron ore supplier in Iran, as well as leading auto manufacturer Saipa Group with almost 8 and 7 points stood after the GMIC.
The comeback of refining companies to the TSE and Iran Fara Bourse or over-the-counter, which was officially announced on Wednesday, is expected to drag down the benchmark, however, a concrete trigger like the one unsettled investors are expecting from the ongoing nuclear negotiations, could offset the possible retreat.
With the recent Initial Public Offerings (IPOs) at the equity market, accompanied by upbeat news about refining companies’ comeback, as well as a potential nuclear agreement, the equity market is expected to bounce back, and gradually wipe out its heavy losses.
