Economy, Business And Markets

TSE Benchmark at 2-Year High

TSE Benchmark  at 2-Year HighTSE Benchmark  at 2-Year High

Tehran Stock Exchange’s all-share index TEDPIX soared 1,054.40 points or 1.35% to close Saturday trade at 79,366.5, the highest since March 2014.

About 58% of listed companies posted gains for the day with auto manufacturing, banking and mining sectors in the lead.

Over 1.4 billion shares valued at $121.3 million were traded with daily trade value shrinking by about $50 million compared to the prior trading day (Wednesday).

Surging global oil, iron ore and base metals prices were the main driving force behind the industries’ growth.

According to Bloomberg, Brent crude oil increased 4.2% last week to $40.36 a barrel, after touching $41.48 on March 8–the highest since Dec. 9. It has experienced three successive weeks of price rise.

Moreover, a recovery in China’s steel output and consumption after the lunar New Year holiday has boosted demand for iron ore, powering prices higher.

Iron ore prices jumped 19% on Monday to $63.74 per dry ton, the biggest gain in daily data going back to 2009, according to Bloomberg.

Copper prices have also been on a recovery trend since February and are close to reaching $5,000 per ton on London Metal Exchange.

According to Mohammad Qasri, an equity markets analyst, Saturday’s boom in stock markets is widely expected to continue till the end of the year (March 19) and the chances of it going down are slim.

“Traditionally, stocks take on a positive rising trend as they get close to the yearend,” he said, adding that now that the post-sanctions stock buying excitement has worn off, TSE’s reasonable rise will continue.

Echoing similar remarks, Mostafa Omid Qaemi, managing director of Mehr Ayandegan Financial Development Group, believes the market will keep its bullish trend in the New Year.

“Investment risk in Iran has declined following the removal of sanctions, which will in turn encourage inflows of foreign investors and liquidity to the domestic market,” he said.

Golgohar Industrial and Mining Company was the biggest riser of Saturday’s trade as it went up 5% to 2,123 rials per share, making the most out of iron ore’s rally. Niroo Mohareke Company was the second market leader, rising 4.99% to 2,883 rials per share.

Mobarakeh Steel Company and National Iranian Copper Industries Company, both with a P/E ratio of 12, provided the biggest boosts to TEDPIX with 117.4 points and 84.99 points respectively. The two companies benefited the most from the global rise in base metal prices as 69.32 million and 36.66 million of their shares were sold out.

Persian Gulf Petrochemical Industries Company was the biggest market laggard with a P/E ratio of 7 and -41.47 points. Esfahan Oil Refining Company and Jam Petrochemical followed with -27.18 and -20.79 points respectively.

The Price Index jumped 382 points or 1.27% to close at 30,348.2. The First Market Index advanced 960.60 points or 1.75% to reach 55,828.6. The Second Market Index added 970.90 points or 0.57% to close at 171,850.9. The Industry Index gained 876.60 points or 1.35% to post 65,942.5.

The Free Float Index had the highest increase among all indices, as it rose 1,414.60 points or 1.59% to end at 90,366.60—recording a two-year high.

The TSE 30 Index was up 61.60 points or 1.85% to register 3,396.1 while the TSE 50 Index gained 50.30 points or 1.59% to hit 3,222.8.

> IFB Trading Up 7-Fold

Iran Fara Bourse’s main index IFX edged down 1.1 points or about 0.01% to close Saturday trade at 810.3.

More than 2.6 billion securities valued at $291.6 million were traded. The number of shares traded and trade value surged nearly sevenfold compared to the prior trading day.

Bank Day recorded the highest number of shares traded and daily trade value, as 87 million of its shares worth $4.8 million changed hands.

Tabas Coal Company, Tuka Rail and Bank Day posted the highest increase in shares’ value, while Lavan Oil Refining Company, Minoo Industrial Company and Gostaresh Tejarat va Sarmayeh Iranian faced the highest decline.

Etemad Fund, with the transaction of 4.1 million of its shares valued at $1.4 million, registered the highest trade volume and value among listed exchange-traded funds.