23925
TSE Rout Continues  for 5th Week
Economy, Business And Markets

TSE Rout Continues for 5th Week

Tehran Stock Exchange wrapped up a seesaw trading week in red, with TEDPIX notching down 485 points or 0.84% in the week that ended August 19 to stand at 65,218.3.

A five-week losing streak at the stock market is primarily due to the falling oil prices, listed companies’ bleak prospect in the short run, unremitting recession, Yuan’s devaluation and lingering sanctions that keep squeezing the overall economy’s performance.

Chemicals, refining sector, metals and minerals are among major listed industries at TSE grappling with tumbling oil prices and sagging global economy.

West Texas Intermediate crude futures lost 1.5% to close at $41.87 a barrel on Monday, the lowest settlement since March 2009, Bloomberg reported. However, oil prices continued their rout to reach $40.96 per barrel on Friday.

Base metals hit multi-year lows on the London Metal Exchange due to heightening risk of a demand slowdown from China, the world’s largest producer and consumer. The recent devaluation of the Chinese Yuan will make base metals’ costlier and pose a risk to their imports into China.

Global petrochemical prices are also correlated to oil price fluctuations. The recent dramatic retreat in oil prices was accompanied by gloomy outlook for petrochemicals as well.

According to TSE data, the First Market Index slipped 484 points or 1.04% to end at 46,217.2. The Second Market Index was off 265 points or 0.19% to 129,487.2. The Free Float Index fell 817 points or 1.1% to settle at 73,588.6. The Financial Index tumbled 1,642 points or 1.185 to 137,171.3 to leave the most negative impact on TEDPIX. The Industry Index slid 352 points or 0.65% to close at 53,784.6. The Price Index pulled back 192.2 points or 0.74% to settle at 25,847. The TSE 30 Index notched down 37 points or 1.27% to end at 2,874.5 and the TSE 50 Index was down 18 points or 0.67% to 2,674.7.

More than 2.4 billion shares changed hands in five trading days valued at $157.5 million. Total trade volume and value posted 49.9% and 51.5% increase compared to the prior trading week.

Most of the 41 listed industries failed to boost the benchmark’s performance. However, electrical machinery, mining extraction and telecommunications sectors only piled up tiny gains.

Irrespective of Iran’s wobbly economy, the global rout is taking its toll on the country’s equity market. Currency and equity markets from Hong Kong to Johannesburg and London were already faltering and the US stocks are joining in. Oil-based commodities and those correlated with China’s demand are unlikely to rebound in the near future. However, as market analysts estimate, consumer goods, small-cap companies as well as telecommunications, construction and transportation are more likely to grab investors’ attention.

 

Short URL : http://goo.gl/ZjTcQN

You can also read ...

Iraq May Become Iran's Top Export Destination
Iran's exports to Iraq have considerably increased in recent...
Gov’t Cuts Back on Spending Amid Growing Budget Deficit
President Hassan Rouhani’s Cabinet approved plans on Sunday to...
Iran Digital Payments Exceed $16b in 1 Month
Close to 1.84 billion transactions worth more than 2.44...
Tehran Mehrabad Airport Projects Worth $20m Inaugurated
A number of development projects worth 2.7 trillion rials (...
NIOC Will Issue Manfa’ah Sukuk to Fund Projects
Head of the National Iranian Oil Company said it will issue...
Iran Engine Oil Production Rises 24%
A total of 214 million liters of engine oil were produced by...
Iran, Pakistan Confer on Broadening Trade Relations
President of Iran Chamber of Commerce, Industries, Mines and...
Packaging Industry Facing Shortage of Raw Materials
A near fivefold rise in packing paper exports, thanks to the...

Trending

Googleplus