Huge gains at the Tehran Stock Exchange (TSE), once again were accompanied by spectacular surge of indices, with the TEDPIX soaring more than 2,400 points at Sunday's close, which is a record high since the TSE was first founded since 48 years ago.
According to TSE data, the equity markets' exceptional rallies helped the benchmark to jump 2,434.7 points or 3.59 percent to wipe out most of the losses incurred since the extension of nuclear talks in November 12, 2014.
The first market index was up 1,804.4 points or 3.65 percent to end at 51,297. The second market index pulled higher 4,718.5 points or 3.46 percent to stand at 141,193.5. The free float index gained 2,822.5 points or 3.6 percent to settle at 81,327.5. The industry index rose 2,025 points or 3.63 percent to 57,739.9, and the blue-chip index also was up 118.5 points or 3.74 percent to finish at 3,286.4.
Like Saturday’s trade, banking, auto, refining, and petrochemical sectors were in the spotlight, with the highest trade volume and value among all listed companies at the TSE.
Saderat Bank with Price Earnings (P/E) of 3.6 extended its leading role among all gainers with the highest trade volume. Sina Bank and Kharazmi Investment Company took the second and third place respectively.
The highest trade value was registered for Tose’e Melli Investment Company, Saderat Bank and Iran Khodro, which is the largest car manufacturer in Iran.
Around 89 percent of listed firms at the TSE outperformed on Sunday, and among them Persian Gulf Petrochemical Industry Company with the P/E of 5.4 had the most positive contribution to the TEDPIX, just like the previous days,. Telecommunication Company of Iran, and Mobile Telecommunication Company of Iran with almost 119 and 118 points took the second and third place respectively.
11.8% Uptrend in 7 Trading Days
The TSE’s 7-day winning streak since the beginning of the Iranian New Year, which started on March 21, has helped the benchmark to register 11.8 percent growth, with around 6.8 percent just within the last two consecutive trading days.
After negotiators at the nuclear talks in Switzerland emerged from marathon talks on Thursday with a surprisingly detailed outline of the agreement that they must work to finalize by the end of June, unsettled investors sentiment dramatically changed and cash inflows headed to the equity market.
With a comprehensive nuclear deal on the horizon, and the annulment of all western sanctions against Iran, lagging indicators are portraying prosperous economic atmosphere in the mid and long-run.
IPOs on Their Way
With regards to the prevailing bullish sentiment and unprecedented demand for shares at Iran equity market, Initial Public Offerings (IPOs) are expected to make a comeback in a bid to satisfy investors’ thirst for shares.
According to boursepress, Khuzestan Cement Company (KCC) would be the first candidate for IPOs, with around 65 million shares, accounting for 10 percent of the KCC’s ownership, which are expected to go public later this week.
The IPOs are expected to manage the TSE’s roller coaster trend especially at a time when buying demand surpasses sales demand.
Foreign Traders at Equity Market
For the first time in Iran’s equity market, more than 120 trading codes for foreign traders were issued last Iranian calendar year to set a new record and underline numerous business opportunities in Iran, said Hamed Soltani Nejad, head of the Central Securities Depository of Iran (CSDI).
“The trading codes were issued for investors from Germany, Malaysia, Australia, Afghanistan, the United Kingdom, and the United Arab Emirate,” the CSDI news agency quoted Solatni as saying.
Many foreign traders showed interest to enter Iran’s equity market last year, and after marathon nuclear talks yielded a milestone agreement, it is expected that they grow in number.
Linking Iran, S Korea Capital Markets
The third joint workshop between the CSDI and Korean Securities Depository was recently held in Seoul, where it was agreed to set a taskforce to link Iran and South Korea’s capital markets together, SENA reported.
The most prudent policy aimed at supporting foreign direct investment is to link to CSDs. The report cited that launching projects funds could entice investors from both countries.
“We strive to prepare a proper ground via the CSDs for investors to trade while they are in their respective country”, SENA quoted Hamed Soltani, head of the CSDI as saying.
