Economy, Business And Markets

TEDPIX Ends Flat Amid Sluggish Trade

TEDPIX Ends Flat Amid Sluggish TradeTEDPIX Ends Flat Amid Sluggish Trade

Wrapping up a volatile trading day in green, Tehran Stock Exchange recorded dramatic retreats in trade volume and value on Monday.

According to TSE data, TEDPIX extended its crawling upward trend for a fifth consecutive day and pulled higher 11.8 points or 0.02% to stand at 64,518.4.

About 463 million shares changed hands valued at $26.8 million to record close to 100% decline in daily trade volume and value to underline the ongoing price swings and seesaw trades amid economic headwinds.

The Price Index inched up 4.7 points or 0.02% to end at 25,504.9. The First Market Index edged down 5 points or 0.01% to settle at 45,769.1. The Second Market Index rose 98.4 points or 0.07% to reach 137,581.4. The Industry Index was up 3.4 points or 0.01% to level at 52,958.6. The Free Float Index was down 16.7 points or 0.02% to hit 73,042. The TSE 30 Index gained 1.6 points or 0.06% to reach 2,854.7 and the TSE 50 Index was down 0.2 point or 0.01% to close at 2,647.6.

Around 57% of listed companies weighed on the benchmark. Persian Gulf Petrochemical Industry with a PE ratio of 6 and -12.11 points was the biggest market laggard followed by National Iranian Copper Industries Company and Fars and Khuzestan Cement Company with -9 and -8 points respectively.

Shiraz Petrochemical Company with 12.34 points gave the biggest boost to TEDPIX followed by Iran Chemical Investment Company and Mobile Telecommunications Company of Iran with 10 and 8 points respectively.

With western sanctions still in place, domestic industries are grappling with a lingering recession and credit crunch, marring the outlook of the economy in the short run.

The rial is depreciating against foreign currencies, giving rise to speculations on possible increase of inflation in the upcoming months.

The TSE listed companies’ upcoming reports is likely to reflect the current slump. This is while the Central Bank of Iran recently announced that despite less-than expected earnings on oil and a looming budget deficit, upon sanctions’ removal, economic growth is expected to reach 3%, which will be accompanied by a diminishing trend of inflation.

Meanwhile, Iran Fara Bourse’s overall index, IFX, notched down 7.88 points or 1.08% to close at 723.64.

IFB’s second Initial Public Offering for Lia Company was launched on Monday with shares priced at 1,360 rials. About 5% of the company’s shares were offered through the IPO, accounting for 12,123,000 shares.