Economy, Business And Markets

Trading Volume Surges, Stocks Pull Back

Trading Volume Surges, Stocks Pull Back
Trading Volume Surges, Stocks Pull Back

Tehran Stock Exchange trading volume surged to a monthly peak, while stocks trimmed their early gains on Tuesday, as the TSE's main index (TEDPIX) fell into the red.

The TSE's trading volume hiked to a new monthly high as it surged by 70 percent compared to Monday, while the TEDPIX failed to stay in green and lost 11.2 points or 0.02 percent to finish a mixed trading day at 71,664, SENA reported.

Stocks persisted in maintaining their gains, while a sharp shift changed the market's trend and some of the major indices pulled back.

The first market index slipped 38.2 points or 0.07 percent to 52,553.2. The Industry index was another index which failed to perform well and lost 6 points or 0.01 percent to finish trading at 60,853.5. The blue chip index was down 3.3 points or 0.1 percent to 3,285.4. But, despite a rather downbeat performance on Tuesday, the second market index gained 169.5 points or 0.12 percent to end at 142,492.5. The free floating index edged up 16.1 points or 0.02 percent to 80,710.3.

More than 1,095,492,593 shares changed hands, valued at almost 1.3 trillion rials, which indicates close to a 65 percent in the trading values.

Pasargad Bank's shares were on top of the most popular shares in the equity market, while Mahram Company's shares were at the end of the list for traders.

Mobarakeh Steel Company left the most positive influence on the stock market's benchmark with a 15.57 percent, while Kharg Petrochemical Company was a crucial laggard in the TEDPIX by a 30.56 percent negative impact.

An analyst told Financial Tribune that the positive outlook of the upcoming round of the nuclear talks between Iran and the P5+1 lessens shaky investors' ambiguities over the potential positive conclusion. Iran's foreign minister, Mohammad Javad Zarif, will meet the foreign ministers' of the P5+1 separately.

A precise look into the volume of the trades on Saturday will reveal the fact that investors are flocking to the equity market. Hence, liquidity has increased and the TSE is more likely to gear up for a potential consistent uptrend in the future.

Uncertainty isn't likely to continue, as average dividends at the TSE rose by 6 percent compared to last year and the companies net income hiked by about 44 percent.

It is hard to escape the conclusion that the capital market is not yet back on the profit making path as it was in 2013, although it is clear that there are fewer challenges faced by the equity market.

Predicting the overall return is important for investors in the equity market. Irrespective of investors' attention to the nuclear talks, ultimately they cannot ignore the 6 percent rise in average dividends. In addition, they cannot miss the rate of economic growth and the reinvigorated capital market.

When one takes into consideration the short-term challenges and the unprecedented and ever-changing emotions of investors, one needs to keep a close eye on the ever changing events.

Analyzing the market from various aspects, it would be evident that the market is ready and equipped to make progress. Considering the surge in market's total value and the trading volume, the time is ripe for a prosperous equity market, analysts said.