After a six-day rout at Tehran Stock Exchange, TEDPIX was lifted on Monday mainly by block trade of several listed companies, including Iran Transfo Corporation.
According to TSE data, most indices pushed the benchmark into green. However, the mood in the stock market remained fragile with all-embracing uncertainties slashing expectations for a bright outlook in the near future.
The TSE gauge rose 62.5 points or 0.1% to close at 65,302.4. The Price Index notched up 24.8 points or 0.1% to end at 25,880.4. The First Market Index advanced 44.8 points or 0.1% to 46,344.1. The Second Market Index edged up 131.9 points or 0.09% to settle at 139,297.9. The Industry Index gained 67.3 points or 0.13% to 53,813.8. The Free Float Index slipped 58.4 points or 0.08% to stand at 73,773.5. The TSE 30 Index inched up 0.3 point or 0.01% to 2,883.3 and the TSE 50 Index added 4.7 points or 0.18% to 2,676.7.
Market analysts say TEDPIX bounced back neither on upbeat news nor by a shift in industries dented sentiment.
“TEDPIX gained on the back of block offering, which is used as an instrument by stock market authorities to prop up the benchmark,” said a market analyst to the Financial Tribune, who declined to be named.
There is no end in sight to high banking interest rates, sluggish global demand for base metals that has led to a dramatic decline in prices, prevailing credit crunch, further slump in crude oil prices, budget deficit and lingering ambiguities surrounding the future of sanctions imposed by the US, EU and the UN Security Council against Iran over its nuclear energy program.
Despite the uptick, close to 464 million shares changed hands to post about 45% decline in daily trade volume compared to Sunday. Trade value was at $39.13 million to register a 27% surge.
Telecommunications Company of Iran with a PE ratio of 4 and 47.9 points gave the biggest boost to TEDPIX followed by Mapna Group and Islamic Republic of Iran with 25 and 23 points respectively.
About 68% of the listed companies underperformed and weighed on the benchmark, with Isfahan Oil Refining Company on top. With -32 points, the company was the biggest market laggard followed by National Iranian Copper Industries Company and Parsian E-Commerce Company with -11 and -7 points respectively.
TSE Nominal Value Up 5%
TSE’s nominal value has risen to $30.3 billion to post 5% increase since the beginning of the current Iranian year, which started March 21, amid listed companies’ capital raise and new firms joining the stock exchange, said TSE head Qalibaf Asl at a press conference on Monday.
Referring to TSE’s five-month performance, Qalibaf said the market cap has now reached $86.66 billion to record a 2% uptick.
He said TSE’s overall index has gained 5% since March 21.
“TSE’s average PE ratio saw a 0.2% increase during the past five months to settle at 5.6. During the period, institutional investors were mostly selling shares, while 58% of retail investors were on the other side piling up gains,” he added.
