Economy, Business And Markets

TEDPIX Caps Winning Streak

TEDPIX Caps Winning StreakTEDPIX Caps Winning Streak

The Tehran Stock Exchange (TSE) overall index lost steam Tuesday amid skeptical sentiments and overreactions. After the TSE’s historic rallies over the past eight consecutive trading days, which were mainly triggered after Iran and six world powers (the United States, Britain, France, Germany, China and Russia) reached a framework agreement on Thursday, the TSE’s gauge retreated amid downbeat performance of the majority of listed companies.

The TEDPIX tumbled 684 points or 0.97 percent to register its first negative trading day since the Iranian New Year started on March 21.

The first market index dipped 465.2 points or 0.89 percent to end at 51,547.5. The second market index dropped 1,596.5 points or 1.14 percent to 138,882.5. The free float index shed 767 points or 0.93 percent to settle at 81,598.5. The industry index lost 733.7 points or 1.26 percent to stand at 57,304.7, and the blue-chip index also slumped 35.6 points or 1.07 percent to 3,306.1.

Trade volume and value dramatically decreased, with investors thirst to garner shares at their intrinsic value trimming amid Iran’s tentative agreement with the P5+1.

More than 1.44 billion shares changed hands, valued at around 2.68 trillion rials, with Tejarat Bank with close to 317 million shares leading the volume of trade.

Tejarat Bank also with 117.5 points in positive contribution surpassed other listed positive contributors, and helped lift the TEDPIX. Islamic Republic of Iran Shipping Lines (IRISL) with 62 and Mellat bank with 29 points followed the IRISL, and took the second and third place respectively.

Mobile Telecommunication Company of Iran with 111 points in negative contribution was accompanied by selloffs and topped market laggards. Tamin Pharmaceutical Investment Company, and Ghadir Investment Company also lost ground and with 98 and 95 point stood after the MTCI.

The first Initial Public Offering (IPO) was launched at the TSE, with Khuzestan Cement Company’s shares priced at 4,450 rials, SENA reported. The KCC has offered 10 percent of its shares (more than 52 million shares) to the public.

The TSE report also noted that close to 13 million shares were allocated to online traders at the TSE.

Recently, Mohammad Fetanatfard, head of the Securities and Exchange Organization pointed out that the SEO is determined to boost the IPOs in a bid to stabilize supply and demand. “The IPO of 20 companies is scheduled to be executed within the coming week”, Mehr news agency quoted Fetanatfard as saying. He further noted that more than $15 billion retained earnings of listed firms in accordance with the previously expected earnings will be distributed to the shareholders. In addition, the equity market is approaching the annual shareholders meeting, which can also boost the equity market, said Fetanatfard.