8871
TSE Breaks 12-Day Spell, Notches Up .74%
Economy, Business And Markets

TSE Breaks 12-Day Spell, Notches Up .74%

Tehran Stock Exchange (TSE)'s overall index snapped its heaviest 12-day losing streak at Monday's close, amid signals indicating positive support from both the cabinet and the administration to help revive the equity market's dented sentiment.
"With the listed industries at the equity market yielding profitability, which is more evident in the leading sectors, the market ambiguities will soon be disappearing," said Mohammad Nahavandian, the chief of staff at president’s office on Monday.
In addition to Nahavandian's upbeat news, the parliament has also ratified the establishment of the Financial Stability Committee in a bid to bring back hope to shaky investors.
Following the massive selloffs since November 27, the stocks' downbeat performance dragged down the benchmark to a 6.8 percent retreat. However, the positive speculations capped the 12-day nosedive.
According to TSE data, stocks staged an immediate rally at Mondays' trading, with the free float index leading the gains.
The TSE's gauge soared 487.3 points or 0.74 percent to settle back at 66,000-point mark. The first market index rose 437.5 points or 0.9 percent to 48,955. The second market index was up 442.4 points or 0.35 percent to stand at 127,599.4. The free float index gained 751 points or 1.01 percent to settle at 75,402.8. The industry index surged 282.4 points or 0.51 percent to end at 55,396.1, and the blue chip index pulled higher 27.5 points or 0.93 percent to 2,971.1.
Contrary to the investors' recent lineups to pull out of the equity market, on Monday investors lined up to garner devaluated shares. However, some unsettled investors still preferred to keep their undervalued shares in the hope of earning more.
Given the fact that stocks are still limping and unsettled investors expect a persistent upward trend, the TSE recorded one of the lowest ever trades both in terms of volume and value. Close to 398 million shares changed hand, valued at almost 805 billion rials.
According to our analysis, close to 71 percent of the listed firms at the TSE settled in green and contributed to pushing the benchmark in green as well.
Ghadir Investment Company topped the positive contributors with up to 68 points, Mellat Bank and Mapna Group took the second and third places respectively. Saderat Bank stood next with almost 36 points, which also helped the TSE's gauge, even though it has one of the lowest Price/Earnings ratios (P/E) of 2.8.
While the banking sector outperformed itself, the petrochemicals, minerals and pharmaceuticals were the market laggards.
Various sectors at the TSE are eying the administration's upcoming decisions, especially those on mine royalties and feedstock prices, which are expected to wipe out the gloomy atmosphere enfolding them.
Market analysts believe that the upbeat news about the reopening of refining symbols, which were expected to heavily push down the TEDPIX, is another factor triggering the uptrend.

> Gov't Vows to Revive Stock Market

The government has a special plan to help the equity market get back on track in the near future, as the administration has finally underlined the stock market's pivotal role in providing liquidity to the industrial sectors; Mehr news agency quoted Mohammad Nahavandian, as saying.
Once the government implements its comprehensive plan, designed to revive the capital market, the equity market will be back on its feet, said Nahavandian adding that: "Uptrend in market's main indices will convince the investors flock back to the equity market."
"Since the giant firms listed at the equity market have always made tangible contributions to the sentiment, their returns are expected to be accompanied by more demand for their shares," he added.
Nahavandian also said that more transparency at the capital market will help boost investors' sentiment.
The administration is mulling over funding small and medium-size firms through banking system. Nahavandian reiterated that to achieve this, "concrete and coordinated policies toward the stock market are essential."
Referring to the market trend contributors, he noted that despite evident economical indicators, unsettled investors' sentiment will keep weighing on the overall index's trend.

 

Short URL : http://goo.gl/qkK06p

You can also read ...

Deposits made in investment funds are also subject to the latest central bank directive.
While more than a year has passed since bank deposit interest...
Iran-Azerbaijan Rail Linkup in 6 Months
A railroad connecting the Iranian Caspian port city of Astara...
Mohammad Baqer Nobakht
Head of Planning and Budget Organization Mohammad Baqer...
Chadormalu Mining and Industrial Company is one of the Middle East’s largest iron ore concentrate producers.
Iran’s Department of Environment has issued a permit for...
Bank Sepah Allocated $11b  From NDFI Forex Resources
Bank Sepah allocated $11.17 billion from the National...
Serbia Abolishes Visas for Iranians
The Serbian government on Tuesday passed a decision on the...
$10m Worth of Contracts Signed With Russians
Contracts worth more than $10 million in the fields of cement...
About 920 million shares valued at $60.96 million changed hands at TSE on August 23.
Tehran Stock Exchange’s main index gained 169.40 points or 0....

Trending

Googleplus