The equity market is getting back on track amid dovish signals from the ongoing nuclear talks between Iran and P5+1. Tehran Stock Exchange's benchmark ended at a 46-day high at Saturday's close.
Iran’s foreign minister released a video message on Friday, saying a nuclear agreement is at hand and can be reached if the United States and its partners choose cooperation over coercion.
“At this eleventh hour, despite some differences that remain, we have never been closer to a lasting outcome,” said Mohammad Javad Zarif.
TEDPIX's board rally on Saturday came on the back of leading industries and firms, including Islamic Republic of Iran Shipping Lines, the banking sector, petrochemicals and refining companies.
According to TSE data, TEDPIX surged 999.13 points or 1.54 percent to settle at 65,860.9. The prevailing sentiment underlines the stock market's great potential as many shares are at their historic lows amid recession and financial issues faced by industries.
The first market index jumped 827.6 points or 1.77 percent to end at 47,531.4. The second market index gained 1,396.9 points or 1.04 percent to close at 135,820.9. The free float index rose 1,444.4 points or 1.94 percent to stand at 75,885.2. The industry index pulled higher 671.9 points or 1.27 percent to 53635.1 and the blue-chip index was up 59.4 points or 2.1 percent to 3,020.1.
The robust uptrend mainly owed to retail investors' enthusiasm to garner shares while most institutional investors were selling shares in a spectacular green trading day.
Trade volume and value dramatically soared with the banking sector registering the highest trade volume. Bank Saderat, with more than 534 million shares, took the first place followed by Mellat Bank and Tejarat Bank.
Close to 89 percent of the listed companies had positive contribution to TEDPIX, while leading companies nearly reached their volatility cap.
IRISL with 91.19 points, topped the list of positive contributors to the benchmark. Bank Mellat and Bandar Abbas Oil Refining Company, with around 80 and 76 points, took the second and third place respectively.
With the PE ratio of 4.5, Golgohar Mining and Industrial Company, with 16.55 points in negative contribution to TEDPIX, was the biggest market laggard followed by Kharg Petrochemical Complex and Razi Glass Group followed GMIC.
Most of the stocks look set to take off to recoup massive losses incurred lately over the economy's dented sentiment, credit crunch, global slowdown and western sanctions. Even skeptical investors are expected to line up to garner shares, as the economy has been buoyed by optimism about an end to the sanctions.
Iran has a diversified equity market with 316 listed companies classified in 39 industries and a market capitalization of around $85 billion. It has piqued the interest of hundreds of hedge funds and western investors who have visited Iran in recent months.
Many of them prefer to remain low-profile as they seek to meet leading Iranian economic analysts, equity market officials and local companies to analyze and pick their favorite sectors or companies for investment away from media spotlight.
The many advantages of Iran for foreign investors include its highly-educated workforce, strategic geographical positioning in the Middle East and abundant natural resources.
