Economy, Business And Markets

Stocks Recover From Last Week Losses

Stocks Recover  From Last Week LossesStocks Recover  From Last Week Losses

Stocks at the Tehran Stock Exchange rose on Monday, with the TEDPIX rebounding after posting big losses last week, though stocks are still far from recovering from huge losses recorded in the past six months.

 According to the TSE website, the main gauge of the exchange closed its rally -- which started from the very beginning of the trading day, with tepid gains to underscore the potential of the market.

All of the market indices stood in green and helped the TEDPIX to bounce back; starting from the first trading hour, helping investors to feel relieved and encouraged to shore up their portfolios.

The TEDPIX gained 151.5 points or 0.21 percent to 71,821.6. The first market index was up by 96.2 points or 0.18 percent to 52,633.2. The second market index finished with tangible gains as it climbed 396.4 points or 0.28 percent to 143,031.4. The free floating index added 187.4 points or 0.23 percent to finish the day at 80,867.4. The industry index jumped 111.3 points or 0.18 percent to 60,960.5, and the blue chip index edged up 6.8 points or 0.21 percent to help lift the TEDPIX after days of slump.

During the singular upward trading day, more than 442 million shares changed hands to record a dramatic plunge compared with the trading volume on Saturday. Total trades notched 1.106 trillion rials, which indicates close to a 9 percent rise compared to Saturday.

After recent gains by Pasargad Bank’s shares, which were on top of the trades on Saturday, Saderat Bank’s shares stood at the top at Monday’s close and caught the eye of investors in the equity market for future trading. Mellat Bank shares were the second most popular in the equity market for the day.

Tamin Petroleum and Petrochemical Investment Company (TAPPICO) made the highest positive contribution to the TEDPIX after the value of its shares rose 42.57 percent. The company’s ticker symbol (TAPPICO) returned to the trading board after this company held its annual general meeting (AGM). Ghadir Investment Company ranked second in the positive contributions to the TSE benchmark.

As the investors await listed companies’ six-month reports, they’re weighing all the companies in the equity market including small and/or popular ones to buffer the impact of unprecedented changes at the TSE.

The TSE reports indicate that some investors have changed their tendency toward big industries, as they’ve suffered sharp losses, mainly as a result of sanctions and the global slump on the raw materials. But, due to an extension of the interim nuclear agreement between Iran and the P5+1 until November 24, the auto industry has got the most tangible relief, although not permanent.

The partial suspension of US-led sanctions has drawn brighter prospects for the domestic auto industry. That is why most nervous investors have been turning to this sector, whose shares are getting hotter as analysts expect high earnings for the carmakers Iran Khodro and Saipa, presuming that sanctions are lifted completely.  

It should be noted that the skittish mood still reigns over the TSE as the narrow growth in trading value on Monday could be an explicit implication for the fragile atmosphere prevailing in the equity market.    

With reference to the uncertainty clouding the economy, traders are averse to long-term investments.

Risk-averse investors precisely analyze the companies, mostly the small scale businesses, to enjoy short-term earnings in order to buffer the unprecedented changes in the economy.

The government along with the Securities and Exchange Organization has been holding on to every viable policy to revive the capital market and bolster various industries, which have been affected severely by the western sanctions against Iran’s nuclear program and the country’s ongoing stagflation.