Tehran Stocks Surge 3.6%

(Wednesday, June 24, 2020) 10:22

Tehran stocks made one of the biggest advances on Tuesday, rising almost 50,000 points as demand for most commodity shares remained high and increase in currency rates boosted inflation expectations.

The main index of Tehran Stock Exchange, TEDPIX, climbed 3.69% for the day to end trading at 1,391,040.97. Large-cap shares contributed the highest to the TEDPIX. 

Out of a total of 420 active ticker symbols at TSE and the junior equity market Iran Fara Bourse, 344 symbols were traded at positive territory, representing 82% of shares.  

Tuesday’s rally put the TSE’s growth at 170% since the beginning of the current fiscal year (March 20). The market has rallied for seven consecutive sessions, largely on the back of soaring currency prices. 

Apart from currency spikes, which has mostly strengthened demand for shares of export-oriented listed companies, the  stock market is booming mainly due to huge inflow of fresh money by new investors. This has made difficult for chart patterns and technical analysts to predict when and where the  rallies would end. 

The CEO of Securities and Exchange Organization Hassan Qalibaf-Asl said Monday that 500 trillion rials ($2.5 billion) in fresh capital flowed into stocks during the first quarter of the current fiscal year that started in late March. This is while the total liquidity inflow throughout the last fiscal year reached 300 trillion rials ($1.5 billion). 

 

Market Performance 

About 6.94 billion shares valued at 142.56 trillion rials ($723.69 million) changed hands at TSE on Tuesday.

Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.

Bama Mining Company was the biggest winner as its shares went up 48.39% to 193,490 rials per share.

Shahid Ghandi Corporation Complex incurred the biggest loss among all TSE-listed companies and went down 3.65% to 118,420 rials per share.

Shahid Ghandi Corporation Complex contributed the most to the benchmark's fall, followed by Pars Minoo Industrial Company, Machine Sazi Arak Company and HiWeb Company.

Mobarakeh Steel Company gave the biggest boost to the benchmark index, followed by Persian Gulf Petrochemical Industries Company, National Iranian Copper Industries Company and Social Security Investment Company.

The Price Index gained 13,111.33 points, or 3.69% to close at 368,730.58. The First Market Index increased by 37,745.54 points, or 3.74% to post 1,046,283.43.

The Second Market Index went up 93,549.51 points, or 3.6% to reach 2,694,025.12 while the Industry Index was up 44,544.27 points or 3.79% to register 1,219,296.77. Free Float Index was up 64,049.88 points to hit 1,862,193.70.

TSE 30 went up 2,624.24 points to settle at 66,040.87 and the TSE 50 ended 1,957.48 points higher to finish at 53,110.61.

 

IFB Up 2.6%

Iran Fara Bourse main index, IFX, gained 383.27 points or 2.6% to close Tuesday trade at 15,098.97.

About 3.41 billion securities valued at 135.69 trillion rials ($688.8 million) were traded at the over-the-counter exchange for the day.

Esfahan Steel Company had the highest number of traded shares as 248.08 million of its shares worth 2.06 trillion rials ($10.45 million) were traded.

Damavand Power Generation Company, Tukarail Company, Shahdab Nab Khorasan Agricultural And Industrial Company and Taliseh Nemooneh Dairy Farm Company had the most negative impact on IFX.

Middle East Mines and Mineral Industries Development Holding Company gave the biggest boost to IFX, followed by Esfahan Steel Company, Zagros Petrochemical Company and Hormozgan Steel Company.