Economy, Business And Markets

Stocks Post Small Gains

Stocks Post Small Gains
Stocks Post Small Gains

Tehran Stock Exchange’s bullish trend calmed down and the stock market’s main indexes didn’t contribute that much as the TEDPIX rose only 0.03 percent on Wednesday.

Despite two broad rallies at the TSE within the past two days, the week’s last workday was a seesaw trading day, as stocks waxed and waned.

According to the TSE’s website, the TEDPIX started with a rally, while market jitters impeded any further uptrend in trades, leading the market benchmark to finish with small gains.

The TEDPIX ticked higher by 23.6 points or 0.03 percent to end a sloppy trading at 74,132.7. The first market index rose 59.3 points or 0.11 percent to 54,707.3. The free floating index was up 121 points or 0.14 percent to 84,311.7. The blue chip index climbed 10.9 points or 0.32 percent to 3,414.8. But the second market index failed to contribute to the TEDPIX’s lift and was down 228.7 points or 0.16 percent to 145,179.3. The industry index was another laggard to the TEDPIX and slipped 113.1 points or 0.18 percent to 62,513.2.  

As the speed of major indices rallying at the TSE shrank or halted completely, the Tehran bourse still had another impressive trading day. But the trading volume and value decreased accordingly.

More than 964 million shares changed hands, valued at almost 2.4 trillion rials, indicating a brief decline compared to Tuesday.

The National Iranian Copper Industry Company’s shares had a stellar trading, and together with Mellat Bank, NICIC left the most positive impact on the TSE’s gauge.

Chadormalu Mining and Industrial Company had the most negative impact on the TEDPIX with a 25.84 percent. Tejarat Bank was another negative contributor to the TSE’s main index.

The TSE persisted on making gains for the past 8 consecutive trading days, which is a positive sign of a stock market recovery.

Iran’s capital market continues to grapple with an ongoing recession which continues to linger longer than most traders would like. The administration however is making every effort to tackle all aspects of the challenges pressing industries to react accordingly.

The two-day unprecedented surge at the TSE has highlighted the equity market’s potential, showing the stock markets’ changes through its roller coaster trading days.

Shaky investors are eyeing the upcoming changes that could definitely impact the market’s trend in the short term. The most crucial one is the prospect of a potential comprehensive agreement between the P5+1 group of major world powers and Iran over the latter’s nuclear energy program.

The outlook of the stock market after the possible dissolution of sanctions portrays a potentially attractive market – one that will usher in foreign frontier market investors in the upcoming years.

Feedstock prices are another controversial issue that the government is meant to be sorting out, with the parliament closely watching the government’s decision-making.

The future forecast for Iran’s capital market is no longer gloomy, as many foreign stock traders are currently quietly negotiating with respective Iranian counterparts to find a way into the equity market, analysts said.