Low trade at Tehran Stock Exchange on Sunday underscores how lingering uncertainties are curbing investors’ appetite to garner stocks, even those with rock-bottom values.
TSE’s benchmark limped to a mixed close with more than 372 million shares changing hands valued at $21.45 million to record almost 37% and 26% retreat in trade volume and value respectively compared to Saturday.
TSE data illustrates that TEDPIX wrapped up the seesaw trading day in red and edged down 27.4 points or 0.04% to 65,973.5. The Price Index ticked down 10.9 points or 0.04% to close at 26,146.6. The First Market Index lost 47.8 points or 0.1% to 47,070.1. The Second Market Index gained 108.9 points or 0.08% to stand at 139,356.9. The Industry Index was down 21.7 points or 0.04% to 54,167.8. The Free Float Index was up 4.2 points or 0.01% to 74,923. The TSE 30 Index shed 1.3 points or 0.04% to 2,702.3 and the TSE 50 Index retreated 1.3 points or 0.05% to settle at 2,702.3.
More than 60% of listed companies dragged down the TEDPIX. Mobile Telecommunications Company of Iran with a PE ratio of 4 and -5.38 points was the biggest market laggard followed by Parsian Oil and Gas Development Company and Telecommunications Company of Iran with -23 and -13 points respectively.
Tamin Petroleum & Petrochemical Investment Company with 30.55 points gave the biggest boost to the TSE gauge followed by National Iranian Copper Industries Company and Islamic Republic of Iran Shipping Lines with 18 and 13 points respectively.
High banking interest rates, recession, sagging global economy and other contributing factors to TSE’s recent rout are expected to gradually fade away with the lifting of sanctions.
Investors are recommended to opt for long-term investment with a diversified portfolio. Recent fluctuations in prices and prevailing retreats at the equity market coupled with speculations have dramatically slashed the expectations of retail investors waiting to recoup their losses in a presumed bullish trend after the nuclear deal was reached on July 14.
Lack of liquidity in many sectors grappling with recession is expected to end as a flock of foreign asset managers are slated to pump inflows while sanctions phase out. Therefore, the current pullback should be temporary.
IFX Edges Up
Iran Fara Bourse too witnessed a seesaw trade on Sunday, however IFX notched up 0.37 point or 0.05% to 772.72. Marun Petrochemical Company and Isfahan Steel Company provided the biggest boost to benchmark as the latter also recorded the highest daily trade volume and value among listed companies at IFB, IFB reported.
Close to 154,550 securities changed hands in 15,123 transactions valued at $21.21 million.
The highest rise in shares’ prices was registered for Isfahan Steel Company and Northwest Housing Investment Company. Zayanderood Housing Investment Company’s rights offerings and Marjan Kar Company registered the highest retreat in value.
The Fixed-Income Market witnessed the trade of 29,910 leasing bonds of RighTel Company. Moreover, Etemad Fund once again posted the highest trade volume among listed exchange-traded funds at IFB.
