Stocks bounced back on Monday, propping up the Tehran Stock Exchange benchmark with refining companies providing the biggest boost to TEDPIX.
After two days of rout at the TSE, nearly half of the listed companies outperformed and helped the TEDPIX to pile up tiny gains, with Bandar Abbas Oil Refining Company (BAORC), and Isfahan Oil Refining Company (IORC) leading the positive contributors.
According to TSE data, the overall index snapped two days of losing streak, and notched up 132.7 points or 0.231 percent to stand at 63,496.5. The first market index rose 101.3 points or 0.22 percent to end at 45,899.4. The second market index pulled higher 240 points or 0.18 percent to 130,486. The free float index climbed 212.1 points or 0.29 percent to settle at 72,904. The industry index gained 99.5 points or 0.19 percent to 52,231, and the blue-chip index also was up 4.2 points or 0.14 percent to wrap up Monday trading at 2,911.6.
The IORC nearly reached its 5-percent volatility cap, and with a Price Earnings ratio of 5.6 attracted institutional and individual investors to shore up their portfolios with its shares, while recording the highest trade volume. Bank Saderat and Pars Khodro (a car manufacturer) followed the IORC.
The Telecommunications Company of Iran topped the companies that dragged the TSE’s gauge, Tamin Petroleum & Petrochemical Investment Company and Mine and Metals Development Investment Company with about 11 and 8 points downbeat performance took the second and third place respectively.
The BAORC, with PE of 2.3 and around 59 points in positive contribution, topped the list of the companies that helped lift the benchmark. The IORC and Persian Gulf Petrochemical Industry Company – with the most market cap at the TSE – followed the BAORC.
The bumpy rides at the TSE have stoked fear among investors amid prevailing ambiguities surrounding the equity market.
Skittish investors tend to opt for fixed-income securities in a bid to hedge their bets while nearly all other securities have dramatically retreated over the past few months. As all market analysts indicate, once the equity market and the overall economy break free from the most crucial systemic risk, i.e. the lingering sanctions over Iran nuclear program, the stock market is expected to register new record highs and millions of foreign inflows will be pumped into the listed industries at the equity market.
Petrochemicals Lift IFX
Meanwhile, the Iran Fara Bourse main index (IFX) ticked up 5.68 points or 0.8 percent to catch up with the TSE’s uptrend and settle at 717.73.
More than 189,500 million securities changed hands in 14,949 transactions, valued at about $20.8 million.
Minoo Industrial Group, Taknar Company and Balast Company recorded the highest price surge; however, Shahroud Industrial Company, Niroo Sarmayeh Company and Amir Kabir Petrochemical Company were IFB’s biggest losers.
The highest trade volume and value with up to 60 million preferred shares was registered for Tourism Bank, valued at close to $1 million.
About 25,180 participatory bonds (fixed-income securities) of Persia Oil and Gas Company changed hands and Etemad Fund with 1.49 million shares topped other listed exchange traded funds at the IFB.
