Economy, Business And Markets

Stocks Rise to Recoup Week’s Losses

Stocks Rise to Recoup Week’s Losses
Stocks Rise to Recoup Week’s Losses

The Tehran Stock Exchange’s main index (TEDPIX) had a bullish trend at this week’s last trading day, after most indices settled in green and wiped out earlier losses.

Based on the TSE’s website, stocks’ rally came at the end of trading hours as the TEDPIX gained 183.2 points or 0.25 percent to hit the 74,000-mark for the second time in a week.

The biannual reports have shown that some of the big listed companies -- those with the heaviest weights in the equity market’s benchmark – have outperformed in the first half of the year, declaring more-than-expected dividends, which made many investors decide to line up and buy their shares to enjoy secured profits. But the overall result has been tepid at best.

As was expected by the market analysts, the speculations regarding the auto industry came true, after the majority of domestic automakers and spare parts producers reported that they have exceeded the previous earning forecasts.

According to the TSE’s website, the TEDPIX rose 183.2 points or 0.25 percent to settle at 74,151. The first market index was up 232.4 points or 0.33 percent to finish the week in green at 54,881.8. The second market index failed to be a positive contributor to the TSE’s uplift as it tumbled 279.8 points or 0.19 percent to 144,155.2. The free floating index pulled higher 520.1 points or 0.62 percent to 84,832.7. The industry index inched up 15.2 points or 0.02 percent to 62,446.9, and the blue chip index was another contributor to help lifting the TEDPIX, as it edged up 11.2 points or 0.33 percent to 3,418.1.

More than 753 million shares were traded on Wednesday, valued at almost 2.05 trillion rials. Total trading value surged by 25 percent, and the trading volume increased to mark a positive trading day.

Saderat Bank had the highest volume of trades, with a 38.56 percent positive impact on the TEDPIX. Iran Khodro (IKCO) took the second place, after investors lined up to buy and diversify their portfolios.  

The IKCO also had a significant contribution to the TSE’s sentiment as its share trade grew 25.88. Although investors flocked to buy IKCO’s shares, the large automaker recorded the most trading value among all the listed companies at the TSE.

The National Iranian Copper Industries Company (NICICO) left a positive impact on the TSE’s gauge, as it had the highest contribution on the daily uptrend with a 49.81 percent. The Mapna group took the second place next to NICICO.

It is quite evident that the stock market is on the path of recovery, with the main index having surged almost 2.5 percent within the past two weeks.

A gloomy perspective still prevails for most of the industries at the equity market. However, global indicators should be taken into consideration in addition to the local factors that affect the function of listed firms.

For the past eight months, the TSE has experienced jitters and the market has been off track. But it seems that eventually, the speculations over a comprehensive nuclear deal between Iran and the P5+1 have begun to unveil the hidden potentials of the stock market.

The TSE is gearing up to turn into a luring market for international portfolio managers and local investors, and repeat the success of last year when it grabbed the headlines with its breathtaking earnings.