The Tehran Stock Exchange posted a 46.9 percent increase in the average trading volume, along with 64.8 percent rise in the average trading value in the week ending November 12, reflecting an unprecedented positive shift in the flow of money to the equity market.
Based on the TSE’s website, almost 5.7 trillion shares changed hands in a bustling trading week, valued at close to 15 trillion rials. Furthermore, the average number of traders at the TSE recorded a 73.7 percent growth compared to the prior trading week.
The TEDPIX was on track to post gains, although the benchmark failed to stay in green at the end of the week’s last trading day.
The TSE’s benchmark gained 423 points or 0.56 percent during the week, highlighting its potential for both individual and institutional investors, as it continues to recover its past 12-month losses.
The majority of the market’s indices managed to push higher the stock market’s gauge, with the second market index leading the positive contributions.
The first market index rose 26 points or 0.05 percent to 56,765. The second market index climbed 2,714 points or 1.76 percent to stand at 148,378.7. The free floating index moved higher 112 points or 0.13 percent to settle at 88,129.9. The industry index gained 414 points or 0.65 percent to end the week at 63,814.5, and the blue chip index inched down 26 points or 0.72 percent to close at 3,526.8.
Due to the sensitive situation concerning the nuclear talks between Iran and the P5+1 group of major world powers, investors are dubious when evaluating companies for investment.
Despite the recent surge in the equity market, unsettled investors have become somewhat conservative, trying to avoid making losses in stock trading. They prefer to get practical information, hedging their bets while contemplating future investments.
As one new investment strategy, many on Wednesday began to line up to sell off some of the large companies’ shares due to the uncertainty over the result of the nuclear talks. This left a negative impact on the TSE’s gauge and pushed it slightly into red.
But as stock market analysts predicted, the market equilibrium has been reached and the TSE is not expected to see any significant changes in the short run. It is evident that investors are generally feeling reassured to pour their money in the market, as they are gearing to obtain higher than expected earnings.
The TSE has become a lucrative arena once again, especially within the past month, making headlines and forcing investors to shore up their portfolios.
According to the Financial Tribune’s analysis based on the TSE’s data, the market’s main index has managed to dramatically push up almost 6.7 percent since November 1, recording a new record high within the past 5 months.
