21806
TSE Grapples With Irregular Pullback
Economy, Business And Markets

TSE Grapples With Irregular Pullback

Tehran Stock Exchange’s performance during the week that ended July 24 has stoked concern among investors with the benchmark tumbling 1,183 points or 1.72% to settle at 67,644 amid alleged manipulation of the equity market.  
TSE was notching fresh record highs on upbeat news about a nuclear deal before July 14. However, after the deal was announced, TEDPIX began to tumble on irregular selloffs by institutional investors. TEDPIX registered a four-day losing streak following the nuclear deal.
Besides the irregular selloffs, other factors to be blamed for the unexpected retreat include annual general meetings of giant listed companies at TSE and retail investors’ dented sentiment.
All indices settled in red to squeeze the benchmark during the week. The first market index slipped 854 points or 1.73% to close at 47,484. The second market index plunged 2,442 points or 1.7% to settle at 141,627.
More than four billion shares and rights offerings changed hands in 105,000 transactions to register 27.6% and 74% downtrend respectively compared to the prior trading week.
The TSE also witnessed the trade of 190,507 participatory notes valued at $5.8 million to record 23.4% and 23.7% pullback in volume and value respectively.
Medical device manufacturers with 4.47% provided the biggest boost to TEDPIX followed by electronic machines producers with 0.82%.

  TEDPIX Jumps 6.1% in a Month
The TSE gauge staged a dramatic surge of 3,834 points or 6.1% in the month that ended July 21 to stand at 67,644 mostly as a result of positive speculations prior to the nuclear deal.
More than 19.47 billion shares changed hands in 1,269,796 transactions to post a 109.5% retreat and 62.3% surge in volume and value respectively compared with the prior trading month.
The first market index surged 2,676 points and the second market index also rose 8,454 points.
More than 1.5 million participatory notes were sold out valued at $463.67 million to post a 70% and 70.2% surge in volume and value compared with the previous month.
Producers of communication devices with 29.39%, medical devices with 21.16% and petroleum with 17.16% provided the biggest boost to the benchmark.

  Upcoming Week
The TSE rout is expected to come to the end and give way to a bull market. Leading industries, including car manufacturers, are likely to outperform as they are in collaboration with foreign suppliers, which will entice investors to garner their shares.
The alleged manipulation of the equity market is unlikely to keep squeezing out the TEDPIX sentiment, as optimism about an economic momentum in the coming months is expected to cause a dramatic shift in listed companies’ performance in the near future.
It was beyond expectations to see the current downtrend in the equity market. Many fund managers are about to officially launch their offices in Tehran. Asset managers and institutional investors are finalizing their contracts with local brokerages to hunt for lucrative gains in many sectors.
ACL Asset Management, Griffon Capital and Sturgeon Capital are among institutional investors slated to establish specialized funds to be among the leading foreign firms entering Iran’s fast emerging market.
Considering the positive speculations about the mid-run economic atmosphere, the incoming flock of foreign investors, sanctions meltdown and tremendous opportunities in mergers and acquisitions, a massive rebound is expected in the coming days

Short URL : http://goo.gl/3sXkuj

You can also read ...

US Won’t Block  European Trade  With Iran
US Secretary of State Rex Tillerson said the Trump...
A delegation headed by First Vice President Eshaq Jahangiri was in Ankara on Thursday and reached several deals.
Following several rounds of negotiations between Iranian and...
All SP Gas Field Phases to Be in Full Swing by March 2019
The South Pars mega project has registered a work-in-progress...
Evaluating Economic Impact of Shifting Iran-KRG Relations
Iran and the Iraqi Kurdistan Regional Government have...
Russia Grain Exports to Iran Reach 220K Tons
Over the first nine months of 2017, exports of Russian wheat,...
Iran’s Red Meat Output Meets 90% of Demand
A glance at Iran’s meat packing industry shows red meat...
Armenia Export Growth in Iran Tops 11%
Armenia has recorded an unprecedented growth in exports to...
Tehran Forex Market Experiencing Steady Days
After the recent rally that considerably pushed up the value...

Trending

Googleplus