TSE Benchmark Inches Up
Economy, Business And Markets

TSE Benchmark Inches Up

The Tehran Stock Exchange saw a downtrend in mid-trading hours on Monday, after which main indices oscillated between gains and losses before the overall index ended in green by the day’s close.
According to TSE data, the TEDPIX edged up 57.7 points or 0.09 percent to end kept hovering at 63,000-level. The first market index ticked up 37.6 points or 0.08 percent to settle at 45,972.3. The second market index gained 144.8 points or 0.11 percent to 130,201.8. The free float index inched up 25 points or 0.03 percent to 72,907.4. The industry index was up 31.7 points or 0.06 percent to 52,181.1, and the blue-chip index also pulled higher 4.5 points or 0.15 percent to stand at 2,913.8.
Trade volume and value was almost flat compared to the previous trading day. More than 443 million shares changed  hands, valued at about $27 million.
The benchmark’s tiny gain was mainly due to the positive contribution of formerly high yielding companies at the TSE, with petrochemicals and banking sectors on top.
Ghadir Investment Company (GIC) with Price Earnings ratio (PE) of 3.5, and 27.17 points in positive contribution provided the biggest boost to the TEDPIX at Monday’s close. Persian Gulf Petrochemical Industry Company, with the highest market cap at the equity market, the PE of 5 and around 24 points in positive contribution, followed the GIC. Omid Investment Group Corporation with 23.31 points took the third place.
Around 56 percent of listed companies at the TSE underperformed, with Bandar Abbas Oil Refining Company (BAORC) leaving the most negative impact on the TEDPIX. The BAORC, with a PE ratio of 2.2, and around 44 points in negative contribution to the TSE gauge, topped market laggards. The Islamic Republic of Iran Shipping Lines, and Bank Pasargad, with around 16 and 12 points stood after the BAORC.

 Pending Measures
The Securities and Exchange Organization is gearing up to take several measures to boost transparency, and attract fresh inflows with the aim of addressing the lingering ambiguities surrounding the equity market, and changing the TSE’s dented sentiment.
The book building for upcoming Initial Public Offerings (IPOs), encouraging listed companies to reveal monthly reports on their performance and holding meetings with governmental bodies to tackle the bearish sentiment at the equity market is expected to reverse the current sluggish trades at the equity market.
It should be noted that part of the lingering risks could be dramatically mitigated by the SEO or other governmental buddies, however, stocks are not expected to perk up unless the crucial risks sorrounding the economy are lifted. Western sanctions over Iran’s nuclear energy program keep weighing on overall economy. The downturn in the banking, petrochemical, and oil sectors has severely dampened listed companies performance.
To conclude, overreactions, irregular selloffs, and lineups will be part of the equity market, and slight gains may occur with prudent policies adopted, though it is less likely to witness broad recoup before the end of the ongoing nuclear negotiations between Iran and the P5+1, with a deadline at the end of June.

Short URL : http://goo.gl/AB2BeN

You can also read ...

European Gov’ts Exploring Financial Channels for Iran
The French, British and German governments have told Iran they...
EU to Protect Firms in Iran Following US Refusal to Grant Waivers
EU countries on Monday gave European firms legal cover to...
$312m Paid in Travel Currency in 3 Months
A total of $312 million were allocated by the Central Bank of...
Biggest Privatization Bid of the Year Set for July 31
Iranian Privatization Organization is scheduled to stage the...
Cuba Rolling  Out Mobile Internet Services
Cuba has started providing Internet on the mobile phones of...
Tehran Hosting International Biology Olympiad
Gifted students from 70 countries across the world have...
Iran, Ghana Sign Capital Market Deal
Capital market authorities from Iran and Ghana signed a...
IMIDRO Outlines Q1 Downstream, Upstream Steel Performance
A total of 11.22 million tons of iron ore concentrate was...