The equity market’s most systematic risk is retreating as Iran and P5+1 clinched a landmark nuclear deal on Tuesday.
The breakthrough caps more than a decade of on-off negotiations with an agreement that could potentially transform the Middle East, Reuters reported.
After months of speculation about investing in Iran with tremendous business opportunities, lingering ambiguities are about to officially vanish and one of the world’s most untapped market looks set to host a flock of foreign investors.
Devalued shares, investors’ dented sentiment, bearish market and unprecedented fluctuations are expected to give way to a massive uptrend in shares’ value, confident investors, bull market and steady growth. However, it may take time to witness the expected run in Iran’s equity market. Robust changes will be pending until the economy officially gets back on track.
The removal of western sanctions imposed against Iran over its nuclear energy program could open the Islamic Republic’s stock market to investors in early 2016, Bloomberg cited a report by Renaissance’s Charles Robertson and Daniel Salter on Monday, adding that inflows could total $1 billion in the first year.
“We are confident that Iran opening up will be one of the most interesting and positive developments for the emerging and frontier market asset class in many years. Iran is the largest and most important economy in our view that is still closed to institutional investors,” the report went on to say.
The TSE’s overall index experienced a seesaw trade on Tuesday, starting off with a rally before pulling back to wipe out earlier gains. However, in the end, upbeat news about a comprehensive nuclear deal helped the TEDPIX to settle in green.
The benchmark gained 238.79 points or 0.35% to close at 69,433.3 after it soared almost 2.3% on positive speculations on Monday.
According to TSE data, the price index rose 98.21 points or 0.35% to 28,530.8. The first market index added 146 points or 0.29% to 49,975.3. The second market index gained 655.89 points or 0.46% to end at 144,018.9. The industry index was up 321 points or 0.57% to 56,686.8. The free float index notched up 168.52 points or 0.21% to 79,807.2. The TSE 30 index edged down 8.4 points or 0.27% to 3,129.2 and the TSE 50 index was also up 6.9 points or 0.24% to 2,850.2.
Trade volume and value rose compared to Monday, with more than 1.81 million shares changing hands valued at close to $120 million.
Tamin Petroleum & Petrochemical Investment Company with 85.22 points gave the biggest boost to TEDPIX followed by Esfahan Oil Refining Company and Parsian Oil and Gas Development Company with 60 and 45 points respectively.
Bank Mellat with 49.78 in negative points was the biggest market laggard followed by Persian Gulf Petrochemical Industry Company and National Iranian Copper Industries Company with -49 and -30 points respectively.
IFX Down
Iran Fara Bourse gauge failed to mirror TEDPIX and pulled back 3.03 points or 0.37% to end at 819.26.
As IFB reported, more than 542 million securities were traded in 27,867 transactions valued at more than $194 million.
Bank Hekmat with more than 44 million shares valued at $1.78 million experienced the highest daily trade among listed companies at IFB.
The highest rise in shares’ value was recorded for Zagros Petrochemical Company, which also provided the biggest boost to IFX. Marjan Kar Company and Saman Insurance Company saw the highest retreat in their shares value.
The modern financial instrument market registered the highest trade volume for Etemad Fund. And the fixed-income market filed the sales of 98,720 leasing bonds.
