Economy, Business And Markets

Semi-Annual Market Cap Soars 9.3%

Semi-Annual Market Cap Soars 9.3%
Semi-Annual Market Cap Soars 9.3%

According to the Central Bank of Iran (CBI), the combined average market cap of Iran’s equity market surged 9.3 percent within the first half of the current Iranian year, ended September 22, compared to the same period last year.

The recent upbeat economic news accompanied with a potential dissolution of the western sanctions against Iran’s nuclear program, has uncovered the equity market’s hidden potential, with tangible growth in the market cap.

Despite the lingering slowdown at the Tehran Stock Exchange (TSE) within the past few months, the market sentiment substantially changed, causing an almost 6 percent surge in the TSE’s benchmark.

The TEDPIX has staged broad rallies right after a 10-month downward trend with all indices in red.

Due to the bearish trend in the market within the past few months, the TEDPIX is still down compared with its strong performance last year.

Based on the TSE’s data, the stock market’s overall index has slipped 4.8 percent since March 22, although the TEDPIX has significantly managed to shrink it losses, wiping out a big chunk of them within the past 3 weeks.

 TSE Monthly Report

The TSE’s main index has gained 1,116 points or 1.5 percent within the month ending November 21 (Aban), compared to last month, although all indices contributed to the TEDPIX upsurge, with the financial index leading the gains.

The stellar trades within the period accompanied by a hike in market liquidity led total trade value to record a 64.5 percent increase compared to the same period last month. In addition, total trade volume recorded a 45.5 percent increase.

The market failed to rally this month, as the cloudy atmosphere over the administration’s budget for next year, ambiguities on the outcome of the nuclear talks, and the Initial Public Offerings weighed on the TSE’s benchmark.

There have been other negatively impacting contributors to the stock market at the end of the mentioned period, including the fall in the price of oil.

The oil price has caused concern over the prospect of some industries, including the petrochemical sector. Moreover, there are other listed industries at the equity market, whose functions are associated with the oil price and the government’s next year budget.

 TEDPIX Ends Down on Saturday

Stocks at the TSE, recorded a fresh downtrend on Saturday to underscore that the TSE is vulnerable to market jitters.

Skeptical investors prefer to sit on the fence for the moment, waiting for an outcome on the ongoing nuclear talks between Iran and the P5+1 as well as the oil price.

Save for Monday’s flat trading, the TSE witnessed 6 continuous negative trading days, which erased part of the recent gains.

Bears are trying to take control of the TSE, however market analysts are insisting that due to the market liquidity as well as the recent rallies, the market’s downtrend is not going to persist.

According to the TSE’s data, the TEDPIX lost 205.7 points or 0.27 percent to settle at 75,042.7. The first market index fell 145.1 points or 0.26 percent to end at 55,446.4. The second market index tumbled 446.6 points or 0.3 percent to 146,515.4. The free floating index, as a key index, slipped 200.3 points or 0.23 percent to 86,429. The industry index retreated 189 points or 0.3 percent to 62,625.5, and the blue chip index was down 10.6 points or 0.31 percent to finish at 3,438.1.

Pasargad Bank and Pars Khodro had the largest volume and value of trade, although both of them negatively contributed to the market’s gauge.

Behran Oil Company topped the positive contributors with 10.51 percent. Mellat Bank and Iran Khodro stood next with a 9.76 and 7.98 percent contribution respectively.

The equity market, with more than 1.5 percent profitability, has outperformed in the past month, surpassing the competing markets. Given the market analysts expectations, the stock market will keep outperforming to reach new highs, if the western sanctions are lifted.