Economy, Business And Markets

TSE Atmosphere Fragile Amid Limping Economy

TSE Atmosphere Fragile Amid Limping EconomyTSE Atmosphere Fragile Amid Limping Economy

The Tehran Stock Exchange overall index recorded the fourth consecutive negative trading week, with around 2.38 percent retreat amid pessimism about lingering ambiguities that have slashed expectations about listed companies’ performance.

According to TSE data, all indices settled in red territory, with the benchmark shedding 1,568 points or 2.38 percent during the week that ended May 6.

The first market index dropped 1,462 points or 3.05 percent to end at 46,431.8. The second market index was down 1,131 points or 0.86 percent to 130,917.1. The free float index slumped 2,256 points or 2.98 percent to 73,572.3. The industry index tumbled 1,075 points or 2 percent to 52,657.6. The financial index 6,083 points or 4.25 percent to be the heaviest market laggards, and the blue-chip index lost 85 points or 2.82 percent to 2,932.8.

The bearish sentiment at the TSE was also accompanied by around 51.6 and 37.7 percent retreat in trade volume and value respectively, as close to 2 trillion shares changed hands, valued at almost $ 143 million.

TSE data also illustrated that the gloomy atmosphere prevailing in the market has negatively affected the number of investors. There were 51,800 investors active at the TSE during the past week, which indicates a 57.3 percent decline compared to a week before.

 IFB Trade Volume Up

Trade volume in Iran Fara Bourse (IFB) has dramatically risen since the beginning of the new Iranian year (March 20) with the secondary market topping other IFB markets with 116 percent growth compared to the same period last year.

Newly debuted shares at the IFB significantly contributed to the surge in trade volume, with Hormozgan Steel Company on top of others.

 Weekly Trade

Close to 684 million shares worth around $174.7 million changed hands at the IFB in the week ending May 6 to record 34 percent decline and 4 percent growth in trade volume and value respectively.

Meanwhile, around 98 million securities, valued at 280 billion rials changed hands in the IFB’s first market; however, the secondary market registered the trade of close to 349 million securities, valued at around 1.68 trillion rials.

Elsewhere, 3.9 million securities changed hands in the base market and 470 million securities were traded in the modern financial instrument market.

Base metals, chemicals, and oil petroleum were among the leading industries at the IFB, after contributing 19, 17 and 17 percent of total trade respectively.

Trade value in the base market and the modern financial instruments market posted 87 and 5 percent surge; however the first and secondary market wrapped up the week with a slight drop.