Economy, Business And Markets

Stocks Extend Rally to Usher Post-Sanctions Era

Stocks Extend Rally to Usher Post-Sanctions EraStocks Extend Rally to Usher Post-Sanctions Era

Iranian stocks headed for the highest level in more than five months after sanctions imposed over the country’s nuclear program were lifted.

Tehran Stock Exchange’s overall index TEDPIX jumped 563.20 points or 0.87% to close Sunday trade at 65,424.1 after it climbed 1.6% to reach 65,920.6 as of 9:48 a.m. The gauge rose 2.1% on Saturday.

Iran Telecommunications Company, with a P/E ratio of 5 and 109.42 points, was the top gainer, followed by Islamic Republic of Iran Shipping Lines Company and Iran Mobile Telecommunications Company with 100.6 and 96.62 points respectively.

The rally in the Iranian equity market comes while stocks across the Middle East tumbled and the easing of sanctions against Iran raised the prospect of a surge in oil supplies, Bloomberg reported.

Saudi Arabia’s Tadawul All Share Index dropped 7% as of 1:02 p.m. in Riyadh to its lowest level since March 2011. Abu Dhabi’s ADX General Index fell into a bear market. Dubai’s DFM General Index lost 4.6%, to the lowest since September 2013.

Iran has complied with the terms of an international agreement to curb its nuclear energy program, allowing it to get rid of crippling economic sanctions, the United Nations’ nuclear agency announced on Saturday.

“The country is seeking to attract at least $30 billion in foreign direct investment over the next five years,” President Hassan Rouhani said in a televised speech.

Revenue from oil will act as a “supplementary income”, President Rouhani said.

Brent crude sank more than 6% on Friday to a new 12-year low, as Iran moved closer to restoring exports.

Iran, home to almost 10% of the world’s proven oil reserves, is starting preparations to boost exports now that sanctions are a thing of the past. That threatens to put further pressure on prices, hurting the oil-dependent economies of the six-nation (Persian) Gulf Cooperation Council.

The council member-states, home to about 30% of the world’s proven oil reserves, rely on income from energy to help fund expenditure. Dubai’s stocks were the region’s biggest decliners. Emaar Properties PJSC, the developer of almost 30% owned by the government, was the biggest contributor to declines.

The ADX General Index dropped 3% to the lowest level since November 2013. The gauge has fallen more than 20% from a peak in July.

“The lifting of sanctions will have a direct impact on the profitability of many companies and sectors such as banks and industrial companies, making it cheaper and easier for them to transact globally,” said Ramin Rabii, chief executive officer of Turquoise Partners in Tehran.


TSE, IFB Daily Report

Tehran Stock Exchange’s benchmark rose 563.20 points or 0.87% to end Sunday trade at 65,424.1.

Over 1.9 billion shares valued at $99.7 million were transacted, with daily trade volume dropping nearly 65% compared to Saturday.

The Price Index gained 217.70 points or 0.87% to settle at 25,288.3.

The First Market Index added 336.20 points or 0.75% to reach 44,997.2.

The Second Market Index surged 1,568.90 points or 1.07% to post 147,655.9.

The Industry Index was up 714.30 points or 1.34% to register 53,973.

The Free Float Index rose 352.52 points or 0.49% to hit 72,635.50.

The TSE 30 Index gathered 26.70 points or 0.97% to finish at 2,777.3.

The TSE 50 Index jumped 27.80 points or 1.06% to close at 2,650.9.

Iran Telecommunications Company provided the biggest boost to TEDPIX while Bank Mellat was the biggest market laggard.

Meanwhile, Iran Fara Bourse’s main index IFX shed 8.33 points or 1.13% to end at 723.06.

More than 342 million securities changed hands valued at $36.6 million, indicating a nearly 30% rise in daily trade volume and a 75% decline in value compared to Saturday’s figures.

Amin Reinsurance filed the highest trade volume and value with 86 million shares valued at $4.2 million changing hands.

Bank Day, Taknar Copper Mine and Amin Reinsurance recorded the highest rise in shares’ value, while Niroo Sarmayeh Company, Kerman Development and Construction Investment Company, Marjankar Company and Khorasan Petrochemical Company experienced the highest decline.

Etemad Fund, with the transaction of 2.6 million shares, registered the highest trade volume among listed exchange-traded funds. Moreover, 102,000 leasing bonds of MAPNA Group were sold out.