Economy, Business And Markets

Stocks Rally Rolls, Worries Simmer Down

Stocks Rally Rolls, Worries Simmer Down
Stocks Rally Rolls, Worries Simmer Down

Almost 71-percent of the listed companies at Tehran Stock Exchange outperformed on Tuesday to help the benchmark rise 562 points or 0.87 percent to stand at 64,838.5.

The rebound mood at TSE owes to both internal and external factors. Lingering concerns about a comprehensive nuclear agreement between Iran and world powers are simmering down, leading well-versed investors to shore up their portfolios with devalued shares.

So, high-yielding companies and those with the prospect of witnessing a leap upon a nuclear accord are in the equity market’s spotlight once again. Petrochemicals, banking, auto, and mineral sectors top the list of both retail and institutional investors.

Meanwhile, the oil refining companies’ Monday comeback and the enthusiasm to garner their shares also gave a boost to TEDPIX on Tuesday.

TSE’s uptrend since June 10 illustrates that TEDPIX jumped about 4 percent in a matter of only 10 trading days.

According to TSE data, the first market index gained 463.3 points or 1 percent to settle at 46,685.2. The second market index pulled up 797.6 points or 0.6 percent to close at 134,387.6. The free float index jumped 807.1 points or 1.1 percent to 74,396.2. The industry index climbed 411.8 points or 0.78 percent to 53,053.4 and the blue-chip index was up 28.6 points or 0.97 percent to 2,971.7.

  Trade Volume, Value on the Rise

TSE’s sentiment is ameliorating, as stocks are showing resilience to lingering economic hardship and investors are gearing up to pump cash once western sanctions imposed against Iran over its nuclear energy are lifted. The economy is also preparing to connect to the global financial network.

More than 1.05 billion shares changed hands at TSE, valued at about $58 million to post 115 and 80 percent growth in daily trade volume and value respectively.

Bank Saderat once again turned into investors’ haven and recorded the highest trade volume among listed firms. Bank Pasargad and Tehran Cement took the second and third place respectively.

Tamin Petroleum & Petrochemical Investment Company with the PE of 4.2 and 94.54 points topped the list of positive contributors to TEDPIX. Bandar Abbas Oil Refining Company and Parsian Oil and Gas Development Company with 75 and 62 points came next.

Persian Gulf Petrochemical Industry Company, which currently has the highest market cap at TSE, was the biggest laggard. Telecommunications Company of Iran and leading local tire manufacturer Barez Industrial Group with 11 and 6 points took the second and third place respectively.