Stocks rose on Wednesday as investors took heart from the rally in global markets, expectations of positive earnings reports of companies and the boom in commodity trading on Iran Mercantile Exchange
World stock markets have hit their highest level in 2019, as optimism builds that the US and China can calm their trade wars.
On Friday, China and the US announced plans to resume trade negotiations in Washington, fueling hopes that both countries were edging toward a deal.
Oil price was swept to a three-month high, with Brent crude close to $67 per barrel, after Donald Trump tweeted that progress was being made. However, Crude-oil futures fell early Wednesday amid fresh signs of rising US output.
TSE's main gauge, TEDPIX, climbed 2, 2102.02 points or 1.34% on Wednesday lifting the index back to 159,489.5 level. According to the website Donyaye Bourse, the rally in the foreign exchange market was another factor behind the stocks' rise as export companies tend to benefit from a weaker rial.
The US dollar was traded for 135,000 rials in Tehran market on Wednesday, up from around 130,000 rials the previous day. Wednesday marked the first notable rise in stocks in more than a week.
Mobarakeh Steel Company was the star on Wednesday's trade as the giant steelmaker's share price rose more than 8% to 3,046 rials. MSC, National Iranian Copper Industries Company and Tamin Oil and Petrochemical Company had the biggest positive impact on the main index.
Meanwhile the Price Index rose 608.94 points, the Industry Index increased 2,021 points, TSE 30 was up 186.58 points and TSE 50 closed 104.93 points higher. In the junior market Iran Fara Bourse, the main index IFX climbed 24.81 points or 1.26%.
Esfahan Steel Company and Zagros Petrochemical Company had the biggest impact on IFX.
On an appositive note, Reuters reported Tuesday that Iran’s exports of crude oil were higher than expected in January and are at least holding steady this month as some customers increased purchases due to waivers from US sanctions.
Shipments are averaging 1.25 million barrels per day in February, Refinitiv Eikon data showed and a source at a company that tracks Iranian exports said. They were between 1.1 and 1.3 million bpd in January, higher than first thought.
Increased exports from the Islamic Republic might prompt renewed US efforts to clamp down on flows. However, this would run the risk of driving up oil prices.
The February shipments are up from January’s 1.1 million bpd, according to Refinitiv. The industry source estimated January exports at 1.3 million bpd, close to February’s level.
