The Tehran Stock Exchange stabilized relatively as the TEDPIX inched out of its downtrend within the past week.
The market’s main indices were mostly in the green as the stock market’s main benchmark pulled higher by 29.6 points or 0.04 percent to 71,670.1.
According the TSE’s website, the exchange ended the first working day slightly up, as the first market index rose 36 points or 0.07 percent to 52,537. The free floating index climbed 45.2 points or 0.06 percent to 80,680. The industry index ticked higher 21.7 points or 0.04 percent to close at 60,849.2. The second market index was the TSE laggard on Saturday as it slipped 31.6 points or 0.02 percent to stay in red at 142,635.4.
More than 1.013 billion shares were traded valued at almost 1.015 trillion rials to register a lower trading day with regards to trading volume and value.
Investors flocked to the Pasargad Bank shares as the bank had the largest volume trade on Saturday.
Ghadir Investment Company (GIC) had the most positive impact on the TEDPIX by a 19.62 percent on Saturday. Kharazmi Investment Company stood next to the GIC with an 11.57 percent positive impact on the TEDPIX.
Due to stagflation in the overall economy, the equity market continues to suffer from the lack of financial resources in banks and financial institutions, or in the capital market, as well as the global recession in raw materials.
Market analysts have pointed out the best short and long term remedies to tackle the equity market challenges, which was severely hit by western sanctions over Iran’s nuclear program.
The TSE declared that the Price Earnings (P/E) ratio in the stock market has dropped to a historic low of 5.43, prompting investors to snap up stocks and shore up their portfolios, while it didn’t significantly change the shaky investors’ taste toward the stock market.
It is quite clear that all investors seek a safe haven for their capital, as most of them have been seriously affected by the dramatic plunge of the equity market in the past six months. The current uncertainty in the capital market made investors focus on guaranteed earnings to buffer the impact of a slump in economy.
Risk aversion has led investors to abandon the chase for high returns, including stocks. Instead, they prefer to stick to the governmental fixed rate bonds and banking interest rates, which generally have lower returns but are guaranteed.
Since investors are currently eyeing the nuclear talks, the skittish mood remained in the equity market.
