TEDPIX Builds on Monday Record With Strong Gain

Tehran Stock Exchange investors on Tuesday seemed intent on propping up the market, as the index started rising 15 minutes into the market’s open.

TSE’s main index jumped by 929.40 points or 1.10% to end Tuesday trade at 85,343.9. This is its highest daily rise in the last 18 months.

The benchmark recorded a 0.59% jump on Monday, reaching its 45-month high of 84,414.5, TSE's website reported.

TEDPIX had gained steadily for the past two months to cross the February 1, 2014, level of 84,164.7. It had previously zoomed past its 42-month high of August 2. Posting a new record will require TEDPIX to gather at least 1,500 points more.

Metal producers, telecoms and engineering companies had some of the highest growth among all industries and effectively drove the market on Tuesday. Oil refineries, chemical producers and base metal companies accounted for the highest trade value.

The growing tide in the market boosted most industries save for a few groups, as the Free Float Index’s even standing with TEDPIX shows. Twenty-five industries gained and only 11 lost. The shares of six of them remained unchanged for the day.

About 734 million shares valued worth $54.61 million changed hands for the day.

Tuesday’s trade value jumped by about 50% compared with the day before. This is mostly due to more than half of market brokerages coming closer to the end of their fiscal year on September 22.

Brokers tend to clear their accounts before the deadline, which in turn pressures investors to sell and makes buying a cautionary move. This can explain the subpar average trade value at TSE for the month.

Most of the brokerages were done clearing their accounts by Sunday, however, causing the market and trade value to rise for the past two days.

Base metals' prices also grew on Monday with global investors’ sentiment improving over China’s injection of $15.3 billion into its slowing economy to prop up banks.

Accordingly, copper prices grew 0.6% to $6,531 per ton. Aluminum also gained $5 per ton to $2,091, based on China’s reduced production of the material. Lead and zinc grew 1% to $3,090 and $2,387 per ton respectively on London Metal Exchange over considerable drops in Shanghai inventories.

According to Financial Tribune's sister publication Donya-e-Eqtesad Persian economic daily, the TSE benchmark is technically not going to face any serious impediments to its growth up to the 89,500 resistance level.

Positive developments such as oil’s positive price outlook, the sluggish condition of the housing market as the equities’ nemesis in attracting liquidity and reduced Islamic bonds’ yields will contribute to the market’s growth in the medium-term.

The rial’s weakening trend against the US dollar is also going to positively affect most companies’ earnings by the end of the current fiscal year (March 20, 2018), especially metal and petrochemical producers focusing on exports.

The greenback had a seesaw trend for the past two weeks, as it rose from 38,940 rials on September 6 in open market to 39,200 a week later. It dropped to 38,930 on Tuesday.

Bazar Saham Brokerage told Financial Tribune that recent forex fluctuations have prompted them to advise their clients on counting on a 4,200-rial greenback.

Systematic risks still remain, however, including the government’s vague stance on forex rate unification, Trump’s fiery rhetoric against the nuclear deal with Iran, still-sluggish economic performance and banks’ unfavorable financial condition.

> Tuesday Trade in Detail

Sobhan Pharmaceutical Company was the biggest riser at TSE, going up 4.99% to 6,477 rials per share.

Piazar Agro Industrial Company incurred the biggest loss among all TSE-listed companies, as it went down 13.23% to 6,296 rials per share.

Mobarakeh Steel Company gave the biggest boost to the benchmark, followed by Mobile Telecommunications Company of Iran and Telecommunications Company of Iran.

Persian Gulf Petrochemical Industries Company weighed the most on TEDPIX, followed by SAIPA Group and Bank Ansar.

The Price Index added 300.70 points or 1.10% to close at 27,611.2.

The First Market Index gained 803.60 points or 1.37% to post 59,476.9.

The Second Market Index gathered 1,208.10 points or 0.65% to reach 187,779.1.

The Industry Index rose by 909.90 points or 0.1.24% to register 74,352.3.

The Free Float Index won 916.71 points or 1% to hit 92,927.90.

The TSE 30 jumped 55.60 points or 1.62% to settle at 3,490.5 while the TSE 50 scored 3,374.5 points or 1.26% to finish at 3,374.5.

Iran Fara Bourse’s main index IFX also gained 5.64 points or 0.59% to close Tuesday trade at 957.64 and yet again reach its all-time high.

Close to 272.35 million securities valued at $88.1 million were traded at the over-the-counter exchange for the day.

Esfahan Steel Company witnessed the highest number of traded shares and trade value, as 48.49 million of its worth $1.24 million changed hands.

MobinOne Kish, Hotel Parsian Kowsar and A.S.P. Company registered the highest value increase.

Shomalshargh Shahrood Industrial and Mining Company, Behpak Industrial Company and Ravan Fanavar Industrial Engineering Company suffered the biggest decline.

Zagros Petrochemical Company, Esfahan Steel Company and MAPNA Asaluyeh Power Plant had the most positive impact on the IFB benchmark.