Economy, Business And Markets

TEDPIX Posts Biggest Weekly Gain in 3 Months

TEDPIX Posts Biggest Weekly Gain in 3 MonthsTEDPIX Posts Biggest Weekly Gain in 3 Months

Optimism about a historic momentum in Iran's economic perspective led to a massive weekly surge at Tehran Stock Exchange, which helped TEDPIX to soar 1,900 points or 2.96% during the week that ended July 7 to settle at 66,761.4, registering a 13-week high.

Fretted investors, buoyed by rising hopes about a comprehensive nuclear deal between Iran and world six powers, cautiously lined up to shore up their portfolios to help TSE benchmark to pile up the biggest weekly gain since April 11.

According to TSE data, first market index rose 1,504 points or 3.22% to close at 48,207.5. The second market index surged 3,091 points or 2.3% to close at 137,515.6. The financial index jumped 6,445 points or 4.5% to record a massive weekly rebound and settle at 149,519.8. The free float index gained 2,501 points or 3.36% to 76,941.3. The industry index pulled higher 1,370 points or 2.59% to 54,332.8. The TSE 50 index climbed 77 points or 2.87% to 2,744. The TSE 30 index was up 89 points or 3.01% to 3,049.8 and the price index also increased 759.6 points or 2.84% to 27,540.7.

More than 4.32 billion shares changed hands in a four-day trading week, valued at close to $251 million to register 41.8% and 26.5% growth compared to the previous trading week.

Moreover, the number of transactions and buyers also posted 58.9% and 22.8% growth to herald the rise of bull market at TSE.

> Lingering Concerns

Since ambiguities still exist, unsettled investors should consider possible overreactions in case Iran and P5+1 fail to clinch a deal.

The Iranian delegation in Vienna have hit out against western negotiators, accusing them of changing their stance and presenting multiple positions, as the negotiations looked almost certain to pass a US congressional deadline, the Guardian reported. However, some political analysts refer to the US gesture as a political game aimed at gaining the most during the final hours.

The performance of most of the listed industries' at TSE and Iran Fara Bourse are somehow tied to nuclear talks and the prospect of sanctions (imposed against Iran over its nuclear energy program). Currently, most of the listed companies are grappling with credit crunch, banking limitations and lack of access to foreign direct investments. However, the equity market's dented sentiment is highly expected to shift, once western sanctions are lifted.  

> IFX Jumps 7.1%

Iran Fara Bourse's main index stages a dramatic surge of 7.1% during the same week.

As IFB reported, more than 848 million securities changed hands in 100,000 transactions valued at $121.6 million to post 46% growth in weekly trade value. However, trade volume recorded a 3% decline. IFB's total market value soared 4.6% and reached $28.03 billion.

IFB primary market witnessed the trade of 176 million securities valued at $14.6 million to post 318% and 253% growth in weekly trade volume and value respectively. The secondary market recorded the trade of 409 million securities valued at $38.15 to register 3% and 33% decline in trade volume and value respectively. The base market saw the trade of 254 million securities worth $5.21 million, and the modern financial instrument market registered the trade of 8.4 million securities valued at $63.5 million.

The banking sector with 20% of total trade volume topped the list of leading industries at IFB. The chemical and transportation sector with 15% and 11% took the second and third place respectively.