Economy, Business And Markets

Equity Market Remains in Hibernation

Equity Market Remains in HibernationEquity Market Remains in Hibernation

Tehran Stock Exchange’s benchmark retreated further during the week that ended October 7 with TEDPIX slipping 109 points or 0.18% compared to the previous trading week to settle at 61,389.8.

Meanwhile, Iran Fara Bourse’s gauge, IFX, rose about 0.72% to end at 673.09 during the same week.

According to TSE data, the Price Index lost 42.5 points or 0.18% to hit 24,047.7. The First Market Index pulled back 231 points or 0.54% to close at 42,533.7. The Second Market Index gained 631 points or 0.46% to reach 136,700.7. The Financial Index tumbled 1,807 points or 1.38% to stand at 129,035.8. The Industry Index edged up 36 points or 0.07% to settle at 50,640.8. The TSE 30 Index was down 5 points or 0.19% to close at 2,622.1 and the TSE 50 Index ended flat.

More than 1.72 billion shares changed hands in 133,132 transactions valued at $87.62 million. Trade volume posted a 9.5% decline while trade value was flat. The number of transactions rose 5.3%.

About 45% of listed industries piled up tepid gains. Rubber and plastic with 10.9% topped weekly gainers. Leather and base metals with 5.3% and 2.9% were next in line.

Machinery and electrical equipment, engineering services, coal mining, banking, insurance, investment companies and metallic products were among the biggest losers.

The global commodity slump keeps squeezing Iran’s export-oriented equity market. Moreover, companies are feeling the pinch due to the domestic ambiguities on mining royalties and feedstock prices.

A slowdown in emerging markets driven by weak commodity prices forced the International Monetary Fund to cut its outlook for global growth this year to 3.1% from a July forecast of 3.3%. Next year the world economy will expand 3.6%, less than the 3.8% projected in July, Bloomberg reported.

Amid rumors of a prospective decline in feedstock prices, petrochemical stocks are expected to record notable gains in the upcoming weeks to boost the overall performance of stocks.

Furthermore, Economy Minister Ali Tayyebnia said earlier in the week that the Money and Credit Council could lower deposit interest rates by 2% to stand at 18% while putting lending rates at 22%.

The government is gearing up to tackle the lingering gloom hung over the equity market.

According to the economy minister, the government has come up with a package of measures to end the prevailing recession in the capital market.

President Hassan Rouhani is to issue the decree for relevant bodies to implement the package this week.