EghtesadOnline: Share trading on Wednesday started with a bang, as Tehran Stock Exchange’s main index made a 6,000-point jump in the first hour of the trading day alone, exceeding 155,000 points by the end of the day to register a historic high.
By the end of the trading day, TEDPIX had gained 6,483.46 points or 4.36% to end trading at 155,061.1 while Iran Fara Bourse’s main index IFX ended up 75.28 points or 4.44% to close at 1,771.25.
The main reason as to why the indices took such a substantial leap was that the price ceiling for steel products on Iran Mercantile Exchange was removed on Tuesday, which set the mind of potential investors at ease, leading to the rush of new capital into the market, according to Financial Tribune.
This development was coupled by the claims of Securities and Exchange Council member, Hossein Abdoh Tabrizi, that petrochemical products will follow suit, with subsidies set to be cancelled on Thursday, Donya-e Bourse reported.
The two pieces of news alone would have sufficed to explain the hysterical willingness of investors to put their money on stocks market.
Historical records show that at times of drastic devaluation of the rial, people tend to inject their liquid assets into the capital market in order to not incur losses due to inflation.
As the value of rial against the dollar has decreased by more than one-third of what it was less than three months ago (42,000 rials per dollar to 136,025 rials per dollar), it is more than natural for individuals to inject money into the stock market.
The entry of new capital is apparent, as almost all the industries with shares in TSE are attracting buyers, a phenomenon that cannot happen unless vast amounts of fresh liquidity are added to the mix.
> Daily Trade in Detail
About 3.36 billion shares valued at $83.98 million changed hands at TSE for the day.
Sina Chemical Industries Company was the biggest winner, as its shares went up 29.81%% to 10,534 rials per share.
Qazvin Sugar Factories Company incurred the biggest loss among all TSE-listed companies and went down 3.45% to 6,216 rials per share.
Mobarakeh Steel Company gave the biggest boost to the benchmark index, followed by Persian Gulf Petrochemical Industries Company and Golgohar Mining and Industrial Complex.
Asan Pardakht Persian was the biggest laggard behind the benchmark’s fall, followed by Iran Tractor Manufacturing Forging Company and Butane Company.
The Price Index gained 1,895.92 points to close at 45,342.1.
The First Market Index was up 5,130.98 points to post 115,921.
The Second Market Index added 11,211.24 points to reach 300,723.2.
The Industry Index increased by 6,081.93 points to register 141,775.9.
The Free Float Index was up 6,831.57 points to hit 166,246.58.
The TSE 30 went up 369.49 point to settle at 7,637.5 and the TSE 50 ended 303.50 points higher to finish at 6,711.1.
Over at Iran Fara Bourse, About 1.11 billion securities valued at $64.47 million were traded for the day.
Bank Day had the highest number of traded shares, as 41.16 million of its shares were traded.
Zagros Petrochemical Company registered highest trade value, as $2.21 million worth of its shares changed hands.
Saina Industries, Esfahan Steel Company and Pegah Golpayegan Dairy Company registered the highest value increase.
Shahr-e-Kord Zagros Meat & Dairy Company, Alborz Bulk Company and Tadbirgaran-e Fars and Khuzestan suffered the biggest decline.
Marun Petrochemical Company, Esfahan Steel Company and Zagros Petrochemical Company had the most positive impact on IFX.