EghtesadOnline: Tehran Stock Exchange's main gauge, TEDPIX, sailed past the 188,000-mark for the second time on Saturday, while other major indexes rose to new highs as bumper half-yearly earnings reports by companies added to a bullish sentiment from indications of positive developments on the political scene.
TEDPIX rose 5,646 points or 3.09% on the first trading day of the week to close at 188,575.5. The index had last crossed the 188,000 milestone 12 days ago.
Saturday's optimism was evident in investors' enthusiasm to buy all sorts of stocks but also a grim warning that frenzy buying could deteriorate into a bubble.
Rising stock prices have been powered by positive corporate earnings reports, the more favorable political conditions and the relative calm in the currency market. The US dollar was traded below the support level of 140,000 rial and around 137,000 rials, according to Financial Tribune.
The drop in the value of rial has been a boon to export-oriented listed companies and the more earnings reports are published, investors become more impressed with the results. This has become a bigger factor since the government ordered some big exporters including petrochemical and metal firms to offer their export earnings on the secondary market at market rates.
The most important news on the political front was related to Iran's ties with the Financial Action Task Force. The international group that monitors money laundering worldwide said on Friday Iran had until February to complete reforms that would bring it into line with global norms or face consequences.
The FATF said in a statement that it has decided at its meeting this week to continue the suspension of counter-measures.
The move gives Iran more time to complete its reforms as the country is under pressure to find new ways to maintain connections to the global financial system as US sanctions bite and the Trump administration prepares to impose measures intended to stop Iranian oil exports in November.
Iran's Vice-President for Legal Affairs Laya Joneydi believes The Financial Action Task Force’s decision to continue the suspension of counter-measures against Iran is a positive step towards maintaining global banking relations as well as providing the platform to regulate new financial rules with other countries including European ones, China, Russia, neighboring countries and such, Dolat Information Center (dolat.ir) reported.
“The extension is a big help to prepare necessary measures to create special financial and banking instruments proposed by EU which is a significant part of the package EU has proposed,” she said.
A move last week by the US Treasury Department to impose sanctions on several Iranian banks and companies seem to have not deterred investors from buying their shares. On Saturday, Isfahan’s Mobarakeh Steel Company was among the best performing companies, growing by 369 points.
In addition to Mobarakeh, the United States also imposed sanctions on Iran Tractor Manufacturing Company, and other companies linked to investment, commodities and engineering.
The analytical website Donyaye Bourse reported that the current positive mood in share trading provides a good opportunity for investors to rethinks their portfolio by picking more valuable stocks.
Tehran Stock Exchange’s main index gained 5,646.40 points or 3.09% on Saturday to end trading at 188,575.5.
About 2.69 billion shares valued at $67.91 million changed hands at TSE for the day.
Trading at TSE and Iran Fara Bourse starts on Saturday and ends on Wednesday.
Shiraz Pharmaceutical Co. was the biggest winner as its shares went up 5% to 7,182 rials per share.
Jam Petrochemical Company incurred the biggest loss among all TSE-listed companies and went down 4.99% to 10,810 rials per share.
Mobarakeh Steel Company gave the biggest boost to the benchmark index, followed by Pars Petrochemical Co., and Iran National Copper Industry Company.
Abidi Pharmaceuticals contributed the most to the benchmark's fall, followed by Khorasan Steel Co., and Behshahr Industrial Company.
The Price Index gained 1,650.22 points to close at 55,112.2.
The First Market Index was up 4,568.22 points to post 142,104.2. Second Market Index increased by 9,286.95 points to reach 360,298.The Industry Index went up by 5,123.30 points to register 172,130.3.
The Free Float Index was up 6,183.51 points to hit 200,621.27.
TSE 30 went up 315.63 point to settle at 9,484.1 and the TSE 50 ended 265.29 points higher to finish at 8,325.7.
> IFX Up 3.39%
Iran Fara Bourse’s main index IFX gained 68.59 points or 3.39% to close Saturday trade at 2,089.03.
About 1.15 billion securities valued at $59.95 million were traded at the over-the-counter exchange for the day.
Esfahan Steel Company had the highest number of traded shares and trade value as 118.1 million of its shares worth $2.43 million changed hands.
Iran Cultural Heritage and Tourism Investment Group Company, Mah Taab Kahnooj Electricity Generation Company, and Chaharmahal Food Products and Sugar Company registered the highest value increase.
Hotel Parsian Kowsar, Rishmac Production and Exports Company, and Shomal-e-Shargh-e-Shahroud Industrial and Mining Company suffered the biggest decline.
Zagros Petrochemical Company, Middle East Mines Industries Development Holding Company, and Esfahan Steel Co. had the most positive impact on IFX.