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Rise of Bull Market at Tehran Stock Exchange

Rise of Bull Market at Tehran Stock Exchange Rise of Bull Market at Tehran Stock Exchange

Bullish sentiment at the equity market is emerging amid mounting optimism about Iran’s economic prospects, as negotiations with the West are showing signs of a final breakthrough.

Iran and six world powers have given themselves until Friday to reach a comprehensive deal which would see the lifting of sanctions over the nuclear energy program.

Tehran Stock Exchange that has been grappling with its most crucial systematic risk for years, looks set to notch record highs, with the overall index surging 741.47 points or 1.12 percent to close at 66,761.4 at Tuesday’s close.

Savvy investors lined up to shore up their portfolios with the shares of what they deemed as high-yielding companies, including those of the banking sector, refining and petrochemical companies. Bargain-hunters also garnered Islamic Republic of Iran Shipping Lines’ shares, which could be among the most lucrative listed firm once sanctions are lifted.

According to TSE data, the price index rose 240.89 points or 0.88 percent to settle at 27,540.7. The first market index gained 546.1 points or 1.15 percent to end at 48,270.5. The second market index soared 1,461.63 points or 1.07 percent to stand at 137,733.10. The free float index was up 833.49 points or 1.16 percent to 76,941.3. The TSE 30 index gained 218 points or 1.5 percent to 3,049.8. The TSE 50 index pulled higher 30 points or 1.11 percent to close at 2,744. The financial index rose 1,877.9 points or 1.27 percent to 149,519.8, and the industry index was up 586.9 points or 1.09 percent to 54,222.8.

More than 1.13 billion shares and rights offerings changed hands at TSE valued at $78.2 million to post a tepid increase compared to Monday trading.

IRISL left the most positive impact on TEDPIX followed by the Telecommunications Company of Iran, Tamin Petroleum & Petrochemical Investment Company, Bandar Abbas Oil Refining Company, Mobile Telecommunications Company of Iran, Mapna Group, Parsian Oil and Gas Company, National Iranian Copper Industries Company and Mobin Petrochemical Company.

Bank Saderat, Pars Khodro and Bank Mellat posted the highest daily trade volume as investors perceived their shares to be the most lucrative.

Various listed industries at the equity market eye new momentum in the economy, which is expected once the sanctions are lifted. Fresh inflows are ready to be injected to halted projects or new ones, to help companies overcome cash flow constraints and embark on development plans.

Fund managers, venture capitals, investment banks, hedge funds and even retail investors are closely tracking developments in the nuclear talks as the first step towards an untapped market.

 

Financialtribune.com