Savvy investors lined up to grab devalued shares and snap up bargains as TEDPIX surged 1,548.1 points or 2.29% to settle at 69,194.5 on Monday amid dovish signals from nuclear talks between Iran and P5+1 for a final deal just around the corner.
Nuclear negotiators were poised Monday to put the finishing touches on a sweeping agreement that would limit Iran’s nuclear program in exchange for the lifting western sanctions.
Most of the listed companies outperformed and helped the TSE gauge to notch its biggest daily gain since April 5. Optimism about fresh economic momentum triggered both retail and institutional investors' enthusiasm to pump fresh inflows to hedge their bets.
Stocks look set to provide the biggest boost ever to TSE benchmark, as international fund managers are gearing up to flock to Iran's equity market and inject much-needed liquidity.
TSE data illustrate that the price index gained 636.4 points or 2.29% to end at 28,445.6. The first market index soared 1,115.4 points or 2.29% to close at 49,829.3. The second market index surged 3,203.4 points or 2.29% to 143,363.4. The free float index jumped 1,808.92 points or 2.32% to 79,638.7. The industry index added 1,206.5 points or 2.19% to 56,365.8. The TSE 30 index pulled higher 65.1 points or 2.12% to 3,137.6 and the TSE 50 index was up 65 points or 2.34% to 2,843.3.
> Trade Volume, Value on the Rise
More than 1.24 billion shares changed hands on a green trading day at TSE valued at $90.15 million to record an 80% and 90% surge in daily trade volume and value respectively.
Unsettled investors once again came back to the equity market. Asset allocators, fund managers and private equities are speculating about lucrative investment opportunities in Iran's fast emerging market. All of them are bullish about Iran and hence, the dramatic surge in trade and market value is expected to be accompanied by TEDPIX's steady uptrend. Moreover, uninvested funds are more likely to find their way into the equity market instead of rival markets, including gold and foreign currencies.
TSE's potential is about to be unleashed and attract more investors both from Iran and overseas.
Iran's 48-year-old TSE has a current market value of around $87 billion and boasts 316 listed companies classified in 39 industries—which is the most diversified is in the region—with the lowest average PE ratio of 5.4.
Around 98% of listed companies pushed TEDPIX into green territory, with petrochemicals and refining companies on top. Tamin Petroleum & Petrochemical Investment Company nearly reached its validity cap, and with close to 117 points provided the biggest boost to TEDPIX. Telecommunications Company of Iran and Parsian Oil and Gas Development Company with 107 and 89 points took the second and third place respectively.
> IFB Echoes TEDPIX Rally
Mirroring the TEDPIX's record rally, Iran Fara Bourse's overall index jumped on Monday and gained 21.93 points or 2.74% to close at 822.29.
As IFB reported, Marun Petrochemical Company, Middle East Holding Company and Tehran Oil Refining Company gave the biggest boost to IFX.
In a bustling trading day at IFB, more than 296 million securities were traded,\ valued at $30.5 million. Iranian Investment Petrochemical Group registered the highest daily trade volume and value among the other listed companies.
Shiraz Oil Refining Company and Asia Zarin Madan Company were IFB's lucrative bargains for investors. The two companies saw the highest rise in their shares' prices. However, Lavan Petrochemical Company and Northwest Housing Investment Company's rights offerings posted the biggest retreat in their shares' value.
The fixed-income market witnessed the trade of 14,000 leasing bonds. Etemad Fund was the most attractive exchange traded funds at IFB.
