Economy, Business And Markets

TSE, IFB Resume Rally

TSE, IFB Resume Rally
TSE, IFB Resume Rally

Stocks resumed their rally on Tuesday brought about by improved economic prospects due to the removal of sanctions against Tehran's nuclear program.

The four-week rally had waxed and waned, as sanctions' relief optimism and fear of recession due to plummeting crude prices each pulled equities their way.

Tehran Stock Exchange's main index, TEDPIX, moved up 1.53% to close at 66,118.10 points—its highest since August 5, as telecoms, banks and investment companies lifted the index.

Carmakers were also winners of the stock market rally. Carmaker Iran Khodro signed a deal with Germany's Daimler AG to make heavy vehicles. Its shares jumped 5% to 2024 rials—a two-month high.

Not all industries are gaining on the optimism around the lifting of sanctions. Miners, for example, have seen their margins deteriorate, as commodities lost value and their contention with the government over royalties is dragging on.

Tuesday's 1,000-point gain came after a 305-point correction on Monday, as crude oil's hammering in the global commodity markets fueled anxieties over fiscal pains to come for Iran's oil-driven economy.

Oil futures remained under pressure in early trading on Tuesday, following a slide that has seen prices fall by more than a quarter since the beginning of the year, as the full return of Iran to oil markets adds to an already huge supply overhang, Reuters reported.

The Iran Fara Bourse over-the-counter market closely followed TSE's moves with petrochemical producers pushing the index up 1.58% to 722.55 points to a four-month high.

The detailed daily report for the two exchanges is as follows:

Over 1 billion shares valued at $63.8 million were traded, as daily trade value rose slightly compared to Monday.

TEDPIX gained 998.60 points or 1.53% to end Tuesday trade at 66,118.1

The Price Index was up 386 points or 1.53%% to settle at 25,556.5.

The First Market Index jumped 715.20 points or 1.60% to reach 45,433.3.

The Second Market Index added 2,089.10 points or 1.42% to register 149,462.1.

The Industry Index gathered 830.80 points or 1.54% to post 54,680.4.

The Free Float Index gained 1,118.72 points or 1.55% to hit 73,117.40.

The TSE 30 Index was up 48 points or 1.74% to close at 2,801.1.

The TSE 50 Index surged 42.50 points or 1.61% to end at 2,683.

More than 70% of the listed companies worked in favor of the benchmark.

Iran Telecommunications Company, with a P/E ratio of 5, gave the biggest boost to TEDPIX by 119.99 points, followed by Iran Mobile Telecommunications Company and Ghadir Investment Company with 118.7 and 83.2 points respectively.

Middle East Bank was the biggest market laggard with 13.43 points. Omid Investment Company and Persian Gulf Petrochemical Industries Company followed with 6.94 and 4.63 points respectively.

Meanwhile, Iran Fara Bourse’s all-share index IFX added 11.27 points or 1.58% to end at 722.55.

According to IFB, more than 314 million securities were traded in 40,000 transactions valued at $41.6 million, with daily trade volume filing a nearly 15% rise compared to Monday’s figures.

Bank Day recorded the highest trade volume of the day with 33.3 million shares changing hands.

Caspian Pharmaceutical Company recorded the highest daily trade value with the transaction of $5.5 million worth of shares.

Shahed Construction and Development Company, Niroo Sarmayeh Company and Zayandehrood Housing Investment Company witnessed the highest rise in shares’ value.

Novin Insurance, Kosar Finance and Credit Institute and Marjankar Company saw the highest decline.

Etemad Fund, with the transaction of 11.4 million shares, registered the highest trade volume among listed exchange-traded funds. Moreover, 112,160 leasing bonds of RighTel were sold out.