Economy, Business And Markets

Investors Gird for Iranian Bull Market

Investors Gird for Iranian Bull Market Investors Gird for Iranian Bull Market

Well-versed investors are expected to garner devalued shares to shore up their portfolios and pump fresh inflows while observing diversification. Speculations about the prospect of the economy, as western sanctions imposed against Iran over its nuclear energy program are scheduled to be permanently lifted, have been upbeat.

The United Nations Security Council is set to vote Monday on a resolution endorsing the Iran nuclear agreement, which would lift US, EU and UN economic sanctions on Iran in return for Tehran limiting its nuclear program.

The resolution will make the Iran nuclear deal international law, which can practically entice fund managers and investors to flock to one of the world's most lucrative markets, as the market has been closed for over 15 years.

Despite institutional investors' irregular behavior after the deal was clinched, which triggered overreactions with retail investors lining up to get rid of presumably risky shares, TEDPIX snatched solid gains in the week that ended July 15.

The main index gained 2,066 points or 3.1% to stand at 68,827.7. The first market index rose 1,121 points or 2.32% to close at 49,328.2. The second market index soared 6,554 points or 4.77% to end at 144,069.6. The free float index added 1,726 points or 2.24% to 78,667.1. The financial index slipped 732 points or 0.49% amid banking sectors' annual general meetings to settle at 148,787.7. The industry index pulled higher 2,116 points or 3.89% to 56,449. TSE 50 index climbed 4,729 points or 3.76% to 130,612.7. TSE 30 index also was up 26 points or 0.85% to 3,075.8; and the price index jumped 791.1 points or 2.88% to 28,266.8.

More than 5.56 billion shares changed hands in 402,959 transactions valued at $361 million to register 28.8% and 43.3% growth in trade volume and value respectively.

The printing and publishing industry and the manufacturing of electronic machinery with 11.38% and 8.35% uptrend were the leading industries at TSE.

Unsettled retail investors were selling their shares on Wednesday, while institutional investors grabbed the shares.

Investors are expecting a dramatic shift in Iran's economy, which will consequently influence retail investors' sentiment.

Lucrative companies with higher expected earnings among listed companies are expected to witness dramatic upsurge in their shares' value, with petrochemicals, transportation, telecommunications, the banking sector and refining companies on top. However, the annual general meetings of six listed banks and three refining companies in the coming days are expected to hinder the upcoming surge.


> IFB Market Value Up 2.2%

Trade value at Iran Fara Bourse surged 2.2% to reach $28.64 billion during the same week compared to the week before.

According to IFB, the Vienna nuclear deal bolstered trade at IFB, with trade volume and value soaring 133% and 166% compared with the prior trading week. In addition, more than 1.97 billion securities were sold out in IFB markets in 123,000 transactions valued about $323 million. The benchmark IFX witnessed 2.8% growth and settled at 811.

The primary market witnessed the trade of 191 million securities valued at $15.8 million to post 8% growth in both trade volume and value. The secondary market recorded the trade of 600 million securities valued at $55.7 million to register 47% and 46% surge in trade volume and value respectively. IFB's base market saw the trade of 1,168 billion securities valued at $47.8 million and the modern financial instruments market saw 14 million securities changing hands valued at $67.21 million.

The banking sector, accounting for 20% of total weekly trade volume, topped the list of leading industries at IFB followed by chemicals and petroleum sectors with 17% and 12% respectively.