Tehran Stock Exchange’s overall index had a seesaw trading in the week that ended July 29, snapping a seven-day losing streak, but falling short of wiping out the big losses incurred lately.
Annual general meetings, lack of liquidity, limping economy and massive selloffs after the nuclear deal were the most crucial factors that dragged down the benchmark. However, investors digested upbeat news about imminent contracts between Iranian companies and their European counterparts, which encouraged investors to shore up their portfolios at the end of the week.
According to TSE data, TEDPIX shed 863 points or 1.28% to close at 66,780.7 by the weekend. The free float index plunged 1,083 points or 1.41% to end at 76,006.6. The first market index slipped 631 points or 1.3% to stand at 47,843. The second market index fell 1,736 points or 1.23% to 139,891.6. The financial index dropped 2,390 points or 1.63% to 143,799.3. The industry index lost 666 points or 1.2% to settle at 54,815.1. The price index was down 604.1 points or 2.22% to 26,556.4. The TSE 30 index retreated 45 points or 1.5% to 2,973.4 and the TSE 50 index also declined 34 points or 1.22% to 2,736.6.
Trade volume and value posted massive retreat with almost 2.5 billion shares changing hands valued at $141.18 million to register a 28.6% and 37.1% drop in trade value and volume respectively.
Stocks’ prices have witnessed dramatic fluctuations since the beginning of the current Iranian year (started March 21), however, TEDPIX is 6.8% up.
The computer and related services sector with 9.94% was the top weekly gainer among 39 listed industries at the equity market followed by textile and coal extraction sectors. The agriculture, paper products and mass construction sectors were the biggest losers.
The refining companies’ ticker symbol is scheduled to make a comeback soon, which is expected to trigger selloffs to further squeeze the TSE. Meanwhile, news of sanctions removal on listed industries like Petropars companies as well as news about foreign trade missions signing joint venture contracts with Iranian firms is expected to prop up the benchmark.
The United Kingdom has announced the lifting of sanctions on Iranian Petropars Aria Kish Operation and Management Co. and Petropars Resources Engineering Kish Co.
Other factors that raised optimism for continuous but light uptrend at stock market include the current rock-bottom values of stocks, foreign investors’ overtures and the funds they are about to establish by the end of September when sanctions are lifted.
Most market analysts describe the recent downtrend as temporary, stressing that considering the due economic momentum in the upcoming months, TSE’s outlook is expected to brighten.
