Economy, Business And Markets

Stocks Seesaw to Push Benchmark in Green

Stocks Seesaw to Push Benchmark in GreenStocks Seesaw to Push Benchmark in Green

The benchmark slightly edged up at Monday’s close to overcome a shaky start, following two trading days that saw stocks wax and wane.

The TSE mid-day recovery was mostly contributed by the Mobile Telecommunication Company of Iran (MTCI) and Telecommunication Company of Iran (TCI), however most of the remaining TSE listed companied recorded sloppy trades and settled in red.

According to the Financial Tribune analysis, almost 75 percent of the listed firms at the TSE failed to perform well, and weighed on the TEDPIX, however 17 percent of the companies pushed the overall index upward, with the remaining companies recording no changes.

The TSE data illustrated that the TEDPIX notched up 9.1 points or 0.01 percent to stand at 65,114.1. The first market index ticked lower by 38.1 points or 0.08 percent to end at 47,912.4. The second market index gained 312.6 points or 0.24 percent to settle at 128,418.6. The free float index lost 159.2 points or 0.22 percent to 73,511.9. The industry index was up 42.6 points or 0.08 percent to 54,856.1, and the blue chip index retreated 0.4 point or 0.01 percent to land at 2,931.

More than 321 million shares changed hands, valued at almost 750 billion rials to underscore the shortage of liquidity in the equity market with Iran Fara bourse or over-the-counter (OTC)’s overall index slipping 3.8 points or 0.53 percent to  708.8.

The TCI, Saderat Bank and Iran Khodro registered the maximum volume of trade, however except for TCI, others weighed on the benchmark.

Despite some analysts interpreting the lowest Price Earnings ratio (P/E) as a positive indicator for investors, the prevailing ambiguities keep dragging down the TEDPIX, which posted new record lows in the past 15 months.

Uncertainties about the economic prospect seem to be the most crucial burden on the equity market, with fears gripping both individual and institutional investors.

The fragile atmosphere of the economy, along with fluctuations in the foreign currencies market coupled with the global slowdown are urging investors to precisely analyze the market before taking part in any investments in the stock market.

The government is scrambling to overcome the challenges surrounding the equity market, however investors should consider all aspects of trading at stock market, SENA quoted Amir Hamouni, head of the OTC as saying. He also noted that “the listed companies’ nine-month reports are mostly positive; however the overall atmosphere at the equity market is still negative”.

Unsettled investors are anxious to recoup their massive losses, yet economic uncertainties coupled with the diminishing foreign currency reserves in banks, have weakened the capital market.

Lack of funds can be a serious setback for projects, which has raised speculations about the possible surge in monetary base to help industries in the coming year, starting March 21. It is, however, unlikely to see a drastic shift in the dented sentiments at the stock market.