EghtesadOnline: Refinery and chemical shares led a broad market rally Saturday, lifting TEDPIX and IFX to their second consecutive day of gains. Stocks began the day in positive territory and steadily climbed higher as investor sentiment was boosted after gains in global oil prices over the weekend.
US oil futures settled sharply higher Friday after government inventory data showed a smaller-than-expected fall in crude inventories, but contrasted with unofficial figures that had showed a massive supply build, sparking a relief rally.
This is while most major investment banks are forecasting a rebound in oil prices in 2019. Bank of America Merrill Lync, for instance, sees WTI averaging $59 per barrel in 2019. Citi is at the bearish end with a $49 price target.
For Brent, Barclays says the benchmark will average $72, and a half dozen other investment banks have price estimates within a few dollars of that price, according to Financial Tribune.
The rally in refinery, chemical and to some extent metal stocks was not felt across the board as bank and auto stocks faced a selloff. The two groups which were in demand in recent days are losing appeal due to fundamental issues besetting both the auto and banking industries.
3.3b Shares Sold
Tehran Stock Exchange’s main index TEDPIX gained 2,330.33 points or 1.47% on Saturday to end trading at 160,774.0.
More than 3.36 billion shares valued at 5.99 trillion rials ($58.19 million) changed hands at TSE for the day.
Trading at TSE and Iran Fara Bourse starts on Saturday and ends Wednesday.
Iran Carton Company was the biggest winner as its shares went up 9.97% to 13,284 rials per share.
Mahram Industry Group (a food company) and Damavand Mining Company incurred the biggest losses among all TSE-listed companies and went down 5% to 39,209 rials and 20,842 rials per share.
Pars Petrochemical Company and Isfahan Oil Refining Company gave the biggest boost to the benchmark index, followed by Mobarakeh Steel Company.
Bank Saderat Iran contributed the most to the benchmark's fall, followed by Tejarat Bank and Telecommunication Company of Iran (TCI).
The Price Index gained 677.42 points to close at 46,736.2. First Market Index was up 1,634.28 points to post 118,177.3.
Second Market Index increased by 5,043.60 points to reach 321,565.6. The Industry Index went up by 2,439.40 points to register 144,584.4.
The Free Float Index gained 2,189.69 points to hit 174,227.06. TSE 30 went up 121.43 points to settle at 7,877.6 and the TSE 50 ended 115.53 points higher to finish at 6,938.7.
At the over-the-counter market, Iran Fara Bourse’s main index IFX gained 29.08 points or 1.58% to close Saturday trade at 1,865.92.
Over 638 million shares and securities valued at $30.89 million were traded at the junior exchange for the day.