16682
Banking Sector Gains Lift TSE Benchmark
Economy, Business And Markets

Banking Sector Gains Lift TSE Benchmark

The Tehran Stock Exchange's benchmark notched up 0.39 percent at Tuesday trading, after the banking sector provided the biggest boost to the TEDPIX.
Around 57 percent of the companies listed in the TSE outperformed, as lineups to garner banking shares left the most positive impact on the overall index.
Bank Saderat registered the highest trade volume among other banks listed in the TSE. Bank Tejarat and Bank Mellat stood after Bank Saderat. The bullish sentiment in this sector is associated to a Monday meeting in which banks were urged to support the equity market.

Call for Support
In a special meeting attended by the heads of some of the leading banks in Iran as well as head of the Securities and Exchange Organization Mohammad Fetanat and Minister of Economic Affairs and Finance Ali Tayebnia held on Monday, the economy minister urged banks to help the TSE's sentiment via their subsidiary investment companies already listed at the equity market, IRNA reported.
Now the banks are expected to either embark on practicing buyback or injecting liquidity to the equity market in a bid to help shift the prevailing bearish trend at the stock market.
The minister's call comes as commercial banks are already grappling with non-performing loans; with their balance sheets dripping with toxic debt. Despite the fact that the banking sector outperformed on Tuesday, market analysts believe the uptrend may be temporary, as nothing new has happened with regards to the economic indicators that often weigh on the benchmark.
Bad asset management, and bad lending practices as well as a severe ongoing recession have led to more than $60 billion in non-performing loans.
"The proposal is good; however it is not practical," said head of Keshavarzi Bank Brokerage Company, Hossein Khezli Kharrazi to the Financial Tribune in a phone conversation. "The credit crunch hanging over the economy due to the high interest rates and recession, has pushed many companies to default, and the banking industry to wrestle with non-performing loans," he added.

TEDPIX in Green
According to TSE data, the overall index rose 246.2 points or 0.39 percent to end at 63,316, and extend its Monday's slight uptick.
The first market index gained 254.9 points or 0.56 percent to stand at 45,750.7. The second market index inched up 21.7 points or 0.02 percent to 130,232.7. The free float index climbed 463.1 points or 0.46 percent to 72,854.1. The industry index ticked up 89.3 points or 0.17 percent to 51,895.6, and the blue-chip index 16.4 points or 0.57 percent to settle at 2,906.3.
Trade volume and value slightly increased compared to the prior trading day, with close to 689 million shares changing hands, valued at 1.43 trillion rials.
Bandar Abbas Oil Refining Company (BAORC) with around 54 points topped the positive contributors to the benchmark. Bank Mellat, Bank Saderat and Bank Tejarat with a total of 135 points followed the BAORC.
The Persian Gulf Petrochemical Industry Company, which has the highest market cap at the equity market, with 34.68 points surpassed other market laggards. Chadormalu Mining and Industrial Company along with Telecommunications Company of Iran, with about 20 and 18 points took the second and third place respectively.

Increased Penalties for Violating TSE Rules
The government on Tuesday approved a 2.5 percent increase in the penalties for breaching the equity market's regulations; said First Vice President Eshaq Jahangiri, as reported by SENA.
According to the approval, the minimum and maximum penalties for violating the stock market's regulations has been set at 25 million rials ($757 at market exchange rate) and 2.5 trillion rials ($75,700) respectively.

 

Short URL : http://goo.gl/LNzmmg

You can also read ...

The share of Iranian railroads in steel transportation is one-third.
There were high hopes for the Iranian mining industry after...
To moderate bank interest rates, the central bank has established links with the Securities and Exchange Organization.
CBI Governor Valiollah Seif has named the newly-formed cordial...
Interbank Transactions Top $800 Billion
Iranian interbank transactions during the fiscal year to March...
New Veep for Economic Affairs
President Hassan Rouhani appointed Mohammad Nahavandian as his...
Amazon, Ebay Purchases Via Third Party Website
A payment facilitation website called ‘Laklak’  (meaning stork...
CRA’s international director, Alireza Darvishi will participate in the event.
Telecom regulators of 23 countries from the Asia-Pacific will...
Computer Algorithm Maps Brain for First Time
A US research team for the first time has developed a computer...
Tehran to Host 1st Int’l Halal Confab in December
The First International Halal Conference is scheduled to be...

Trending

Googleplus