Stocks at the Tehran Stock Exchange (TSE) pushed the TEDPIX to make brief gains in the week that ended March 11, amid positive speculations about a possible nuclear accord between Iran and world major powers.
Just as skeptical traders won’t rely any more on rumors or unofficial reports about the ongoing nuclear talks, which can potentially trigger bull market, the latest news are indicating that both sides are about to clinch an accord.
Major world powers have begun talks about a United Nations Security Council resolution to lift UN sanctions on Iran if a nuclear agreement is struck with Tehran, which could make it harder for the US Congress to undo a deal, Reuters reported.
A Security Council resolution on a nuclear deal with Iran could be legally binding, say western diplomatic officials. That could complicate and possibly undercut future attempts by Republicans in Washington to sabotage an agreement.
Among questions facing negotiators as they seek to prepare a resolution for the Security Council is the timing and speed of lifting UN nuclear sanctions, including whether to present it in March if a political framework agreement is signed next week or to delay until a final deal is reached by the end-June target.
The TSE’s gauge rally at Wednesday close – the last working day at the TSE – was due to the positive contribution of the second market index and the industry index.
According to TSE data, the overall index edged up 56 points or 0.09 percent to settle at 64,07.7. The first market index was down 76 points or 0.16 percent to 47,444.6. The second market index gained 884 points or .72 percent to 124,393.9. The free float index tumbled 361 points or 0.49 percent to 72,911.5. The industry index was up 94 points or 0.17 percent to end at 53,612.4. The financial index retreated 503 points or 0.40 percent to finish at 124,748, and the blue-chip index lost 5 points or 0.18 percent to 2,862.2 during the week.
Slashed expectations on listed industries performance, accompanied by the gloom remaining pervasive at the equity market, have heavily weighed on the benchmark to shed almost 19 percent since the beginning of the year, which ends March 20, however, unsettled investors presumably are mulling over shoring up their portfolios on the recent upbeat news.
Adding to the positive triggers, were the recent Initial Public offerings (IPOs) at the equity market, which grabbed the attention of both individual and institutional investors; however, TSE data illustrate that trade volume and value dramatically nosedived compared with the previous trading week.
Almost 2 billion shares changed hands during sloppy trades at the TSE, valued at close to 3.8 trillion rials to record almost 30 and 32 percent retreat in trade volume and value respectively. The banking sector grabbed investors’ attention, as Mellat Bank, Saderat Bank and Tejarat Bank had the highest value of trades.
Fixed income bonds lost ground, as their trade volume and value plunged almost 73 and 74 percent respectively to highlight how shaky investors’ safe havens are turning to.
All in all, volatilities at the stock market is mostly due to the prevailing ambiguities hanging over the teetering economy and sagging global economy; however, the TSE’s hidden potential is expected to grab headlines once a nuclear accord is achieved.
IFB in Spotlight
Meanwhile, trade value and volume at the Iran Fara Bourse (IFB) rose 73 and 78 percent respectively in comparison with the prior trading week, the IFB public relations reported.
More than 1.6 billion shares changed hands in 80,000 transaction rounds, valued at almost 9 trillion rials.
According to the report, more than a million securities, valued at close to 3.7 trillion rials were traded. The secondary market recorded the exchange of 210 million shares priced at 709 billion rials.
Weekly trade value in first and secondary market recorded 105 and 92 percent surge respectively.
Chemicals with 30 percent, hotels and restaurants with 11 percent, and real estate with 10 percent of total weekly trade value, were the leading sectors.
Fara Bourse EPS
The IFB sees the upcoming year’s Earnings Per Share (EPS) moderately higher than what was previously estimated.
The IFB, as a private company with a market cap of around $117 million, is now anticipating an EPS of 601 rials, which is higher than the previous estimate of 508 rials, indicating a 43 percent increase on operating profit as well as 18 percent rise in net profit.
According to the IFB, the increase in the EPS was due to the tangible growth in trade volume, which has been intensified with the aim of providing finance for listed firms.
