Economy, Business And Markets

Stocks Bounce Back

Stocks Bounce Back
Stocks Bounce Back

The Tehran Stock Exchange overall index pulled up 0.29 percent at Monday’s close, snapped a 6 day losing streak, and was pushed by all indices that settled in green.

 After a 6 day rout at stock market amid prevailing bearish sentiment, about 94 percent of listed companies at the TSE slightly outperformed, though lousy trades still weigh on investors’ sentiment.

According to TSE’s data, the TEDPIX gained 183.9 points or 0.29 percent to stand at 63,069.8. The first market index rose 82.3 points or 0.18 percent to 45,495.8. The second market index climbed 697.9 points or 0.54 percent to settle at 130,211.9. The free float index notched up 354.6 points or 0.49 percent to 72,391. The industry index inched up 63.7 points or 0.12 percent to 51,805.7, and the blue-chip index also was up 10.9 points or 0.38 percent to end at 2,889.9.

Despite the TEDPIX’s slight uptick, trade volume and value declined compared to the prior trading day. About 573 million shares changed hands in a sluggish trading day, valued at $30.6 million. Trade volume and value notched down close to 45 and 50 percent respectively.

The banking sector turned into investors’ safe haven on Monday, with Bank Mellat providing the biggest boost to the TEDPIX. Bank Saderat and Bank Tejarat with close to 33 and 32 points followed Bank Mellat.

Chadormalu Mining and Industrial Company – the owner of one of the biggest iron ore mines in Iran – with 126 points was the main market laggard. The National Iranian Copper Industries Company and Telecommunication Company of Iran with close to 18 and 17 points took the second and third place respectively.

Irrespective of the fact that the TSE has great hidden potential, most of the stocks are being traded below their intrinsic values and the wobbling economy along with systemic and systematic risks are still weighing on the listed companies’ performance.