Stocks early rally partly waned at the Tehran Stock Exchange (TSE), as most of the stocks moved up only slightly, with the TEDPIX briefly notched up on Monday.
The unsettled stock market wiped out most of the early gains, though the TEDPIX managed to settle in green.
After nine positive consecutive trading days, the TSE’s benchmark tumbled to mark the vulnerability of the country’s equity market, while the TEDPIX changed yesterday bearish trend to edge up 0.02 percent.
Based on the TSE’s website, excluding the second market index, other indices contributed to lifting the equity market’s gauge, as the TEDPIX gained 18.1 points or 0.02 percent to end at 73,958.9.
The first market index rose 45.5 points or 0.08 percent to finish at 54,654.8. The second market index slipped 175.9 points or 0.12 percent to close in red at 144,340.1. The free floating index climbed 160.5 points or 0.19 percent to 84,328.1. The industry index was up 17.3 points or 0.03 percent to 62,391.2, and the blue chip index inched up 1.5 points or 0.04 percent to 3,412.
Stock extended their gains, along with their trading volume and value but only slightly through the course of the day.
According to the report, more than 695 million shares changed hands valued at almost 1.90 trillion rials.
Iran Khodro, the leading Iranian auto manufacturer with a ticker symbol of (KAVR1) topped the trade volume among all listed companies at the TSE, after it recently estimated dividends of 77 rials per share for the current Iranian year ending March 20, 2015, ISNA reported.
As IKCO considers raising its profit outlook, investors are becoming more interested in buying its shares, however this company used to have gloomy prospects as its profit turned negative last year. Mellat Bank (MELT1) took the second place as financial companies have been successful to stoke the appetite of market traders.
Regarding the companies’ trade values, IKCO could also win the race and hit top spot compared to the other companies’ trade values. Besides, Persian Gulf Petrochemical Industry Company (PKLJ1) grabbed second place as huge volume of its shares has been traded on Monday.
The National Iranian Copper Industries Company (NICIC) extended its positive impact on the TEDPIX as it had 67.7 percent contribution on the day, and Kharg Petrochemical Company stood next to the NICIC, contributing by a 26.9 percent to the TEDPIX uptrend.
Stock market turbulences and mixed trading days indicate that market jitters are still affecting the skittish investors, although the overall trend is turning positive.
Despite the market decline over the last 10 months, recent changes in the market especially in the last month have begun to change the mood of the trading floor, with stability becoming more prominent in that time.
The volume of the trades is growing day by day and number of traders is increasing. The TSE used to be the most alluring market for many investors in 2013, but the market began to erase the gains it made causing major headaches for traders and brokers.
Despite the slowdown, which is rippling through different corners of the economy, as all market analysts believe, the TSE won’t fall into a persisting bearish trend, as economic growth is improving.
The monthly inflation rate for the seventh month of the Iranian calendar year 1393, ending on October 22, went down 1.5 percent to reach 19.1 from 20.6 in the previous month (Shahrivar, August 22-September 22), the Statistical Center of Iran announced on Sunday.
The recent bi-annual reports released by many companies at the TSE indicated that some of the firms had lackluster performances, though with the general economic turnaround underway these companies are likely to improve their profit making abilities.
All these indicators are beginning to change investors’ attitudes, making them relieved about their moves at the equity market. Moreover, new investors are joining the stock market with fresh cash, which in turn will bolster the capital market.
