EghtesadOnline: The stock market posted significant gains Monday, as share prices across the board ended substantially higher.
TEDPIX, the benchmark index of Tehran Stock Exchange, rose 2,594.2 points -- the second consecutive session to post a gain after a four-day losing streak -- to close the day at 183,219.5 points. The market remained closed on Tuesday in observation of the annual Arbaeen rituals marking the 40th day of the martyrdom of Imam Hussein (PBUH), the third Shia Imam.
The fact that investors are mostly interested in battered stocks and high activity is absent in share trading, is indicative of the fact that the market is only thinking short term
Although the value of trading remained relatively low, but price corrections have made nearly all stocks attractive to buyers and shares that have posted the biggest falls in the past days now face the biggest demand, Financial Tribune reported.
Among the stocks that experienced the heaviest price corrections in the past months were auto and sugar stocks. Bank shares were also among the worst performers as lenders' half-yearly earnings results failed to impress investors.
On Monday however, lower share prices prompted investors to pile into bank and auto shares. Auto maker's earnings results have been particularly disappointing with the country's main carmaker Iran Khodro announcing unprecedented losses for the six months to September 22. Although some floated rumors that the company had cooked the books in order to exaggerate losses as a ploy to convince authorities to increase auto prices.
Carmakers have long complained that after the sharp fall in the value of rial, they are the only industry that has not raised prices and now the reshuffle in the government's economic team has increased the possibility of price hikes with government blessing.
The parliament at the weekend approved a government economic reshuffle, days before new US sanctions on Tehran’s oil exports take effect. Academic Farhad Dejpasand, widely seen as a technocrat, received the trust vote with a wide margin as the new economy and finance minister.
Mohammad Shariatmadari, the former industries minister, was given the labor, cooperatives and social affairs portfolio. Parliament also endorsed Mohammad Eslami as the minister of roads and urban development. Reza Rahmani, who previously headed the Majlis Mining and Industry Commission, became the new minister of industry, mines and trade.
The analytical website Donyaye Bourse reported that the fact that investors are mostly interested in battered stocks and high activity is absent in share trading, is indicative of the fact that the market is only thinking short term and no bumper growth should be expected in the near term.
Tehran Stock Exchange’s main index gained 2,594.2 points or 1.44% on Sunday to end trading at 183,219.5.
About 2.03 billion shares valued at $37.32 million changed hands at TSE for the day. Trading at TSE and Iran Fara Bourse starts Saturday and ends on Wednesday.
Doroud Cement Company was the biggest winner as its shares went up 9.99% to 1,189 rials per share.
Chemidarou Co. incurred the biggest loss among all TSE-listed companies and plunged 7.53% to 4,469 rials per share.
Persian Gulf Petrochemical Industries Company gave the biggest boost to the benchmark index, followed by Omid Investment Group, and Bank Mellat.
Jam Petrochemical Co. contributed the most to the benchmark's fall, followed by Khuzestan Steel Company, and fanavaran Petrochemical Co.
The Price Index gained 754.2 points to close at 53,365.7. First Market Index was up 2,004.3 points to post 135,779. Second Market Index increased by 4,716.8 points to reach 361,112.3.
The Industry Index went up by 2,113.4 points to register 167,426.1. Free Float Index was up 2,840.66 points to hit 192,825.94.
The TSE 30 went up 100.2 points to settle at 9,124.8 and the TSE 50 ended 103.2 points higher to finish at 8,112.7.
IFX Up 1.34%
Iran Fara Bourse’s main index IFX gained 26.9 points or 1.34% to close Monday trade at 2,040.28.
About 941.21 million securities valued at $28 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 161.89 million of its shares worth $2.61 million were traded.
Iran Cultural Heritage and Tourism Investment Group Company, Hotel Parsian Kowsar, and Ballast Co. registered the highest value increase.
Kish Parsian Electronic Commerce, Teliseh Nemooneh Co., and Sobhan Oncology Co. suffered the biggest decline.
Middle East Mines Industries Development Holding Company, Esfahan Steel Co, and Marun Petrochemical Co. had the most positive impact on IFX.