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TSE Turns Heads With Stellar Performance

TSE Turns Heads With Stellar PerformanceTSE Turns Heads With Stellar Performance

Tehran Stock Exchange’s main index TEDPIX jumped 2,124 points or 3.11% on Tuesday to hit 70,999.5, extending a five-day winning streak and recording the highest rise since December 2014.

A wave of excitement has put investors into action ever since the implementation of the historic nuclear deal on January 16, when the UN nuclear watchdog confirmed that Iran has curbed its nuclear program, which technically marked the end of western economic sanctions.

Since then, the TSE gauge has been steadily on the rise, except for a brief decline on January 18.

Deals worth up to $18.4 billion have been signed during President Hassan Rouhani’s ongoing visit to Europe in a wide range of sectors, including energy, steel, auto manufacture, infrastructure and shipbuilding, promising growth for the listed industries.

The oil and petrochemical sectors did remarkably well, as the Persian Gulf Petrochemical Industries Company and Parsian Oil and Gas Development Company gave a 493-point boost to the benchmark.

Investors reacted positively to the news of Italy’s Saipem Company signing a $5 billion contract to develop Shiraz and Tabriz oil refining companies, according to SENA news agency.

According to market experts, however, the tide will fall as soon as the positive psychological impact of the lifting of sanctions wears off.

“Many of the non-institutional investors have unrealistically high hopes for the market, mostly based on speculations that foreign investors will immediately flock to Iran after the removal of sanctions,” said Hassan Khanjamali, Khobregan Saham Brokerage's head of asset management.

Khanjamali believes many shares are poised to experience a price bubble in the following weeks, which will eventually pop when the market normalizes.

According to the managing director of Sepehr Investment Company, Behrouz Zare', the current sprint in the market trend will definitely benefit investors eying long-term gains.

"The inexperienced and short-term players, however, risk losses," he added.

> TSE Daily Report

More than 2.5 billion shares valued at $127.9 billion changed hands with daily trade value rising slightly compared to the previous trading day.

The Price Index added 822 points or 3.11% to end at 27,245.2.

The First Market Index gathered 1,623.60 points or 3.40% to settle at 49,422.8.

The Second Market Index was up 3,971.10 points or 2.60% to reach 256,860.1.

The Industry Index gained 1,876 points or 3.30% to post 58,730.8.

The Free Float Index jumped 2,374.67 points or 3.08% to hit 79,396.80.

The TSE 30 Index won 98.10 points or 3.34% to record 2,038.1 while the TSE 50 Index rose 94.50 points or 3.39% to register 2,883.

Close to 85% of the listed companies worked in favor of the benchmark.

Parsian Oil and Gas Development Company provided the biggest boost to TEDPIX with a P/E ratio of 6 and 302.82 points, followed by Persian Gulf Petrochemical Industries Company and MAPNA Group with 191.63 and 98.28 points respectively.

Shiraz Petrochemical Company had the most downbeat performance with 4.08 points. Alborz Darou Pharmaceutical Company and Tehran Chemie Company followed with 3.97 and 3.41 points respectively.

> IFX Up 2.48%

Iran Fara Bourse’s all-share index gathered 18.44 points or 2.48% to end at 761.64.

Close to 390 million securities changed hands in 47,000 transactions valued at $51.7 million, as daily trade value grew nearly 15% compared to the prior trading day.

Monday’s chart-toppers returned, as Esfahan Steel Company registered the highest trade volume of the day with the transaction of 43 million shares.

MAPNA Group recorded the highest trade value of the day as $481,000 worth of shares changed hands.

Chaharmahal Sugar Company, Gostaresh-e Tejarat va Sarmayeh Iranian Company and Shahrood Industrial Company witnessed the highest growth in shares’ value.

Niroo Sarmayeh Company and Minoo Industrial Company and Esfahan Steel Company had the highest decline.

Bank Day and Tehran Oil Refining Company were also on investors’ radar.

Etemad Fund, with the transaction of 6.4 million shares, registered the highest trade volume amid listed exchange-traded funds. Moreover, $4,757,777 worth of Islamic Treasury Bills were sold out.

Financialtribune.com