Economy, Business And Markets

TSE Ends Seesaw Trade Flat

TSE Ends Seesaw Trade FlatTSE Ends Seesaw Trade Flat

After a massive retreat on Tuesday, Tehran Stock Exchange’s overall index inched up 5.2 points or 0.01 percent to 62,323.1 with most indices settling in red.

According to TSE data, first market index lost 13.7 points or 0.03 percent to 44,759.7. Second market index gained 119.7 points or 0.09 percent to end at 129,885.7. The free float index ticked down 20.9 points or 0.03 percent to 70,761. The industry index slipped 69.6 points or 0.14 percent to 51,482.1 while the blue-chip index notched up 4.3 points or 0.15 percent to stand at 2,838.3.

As lingering uncertainties are exacerbating the bearish sentiment at the equity market, investors are refraining from garnering stocks that have hit rock-bottom values. The low trade volume at TSE clearly indicates the prevailing fragile atmosphere.

More than 323 million shares changed hands valued at close to $14.28. Tuka Steel Investment Company topped the list of companies with the highest trade volume. Bank Saderat and Kavir Tire Company took the second and third place respectively.

Bank Mellat with the PE ratio of 4.5 and 62.54 points left the most positive impact on TEDPIX. Telecommunications Company of Iran and Persian Gulf Petrochemical Industry Company with about 28 and 16 points followed Bank Mellat respectively.

Around 58 percent of the listed companies at TSE weighed on the benchmark with Bandar Abbas Oil Refining Company leaving the most negative impact on TEDPIX. Esfahan Steel Company and Ghadir Investment Company with 22 and 13 points respectively in downbeat performance followed the BORC.

Credit crunch has crippled lenders, mostly government-owned banks, which has dramatically hindered economic growth. The prevailing recession, regional tensions and the still-high inflation are inhibiting the performance of all industries.

Since most leading industries are listed at the equity market, it is not wise to expect a bullish trend in the short run. However, it is widely expected that once Iran and the P5+1 strike a final nuclear deal, a dramatic surge in TSE’s trade volume and value will ensue, which will in turn stimulate both retail and institutional investors. This is the reason why so many hedge fund managers from across the world are traveling to Iran to explore the tremendous investment opportunities in the country’s untapped market.