Tehran Stock Exchange Extends Rally
EghtesadOnline: The benchmark TEDPIX average extended its winning streak to a second session on the Tehran Stock Exchange on Sunday, backed by renewed hopes about soon-to-be-released monthly earning results of companies.
TEDPIX climbed 1,762.55 points, or 1.07%, to end at 166,030.4 on Sunday. On Saturday, the key market gauge rose 4,778.26 or 3.00%. Saturday market the biggest single-session point gains for the market in four months.
As with recent surges, the surge in foreign exchange rates is a key factor in lifting the market with export-oriented companies expected to gain most from a weaker rial.
The USD exchange rate has shot up 30% in the open market during the two months to Feb. 19. On Saturday, the US dollar rose again, with the exchange rate approaching the psychological level of 140,000 rials, Financial Tribune reported.
Golgohar Industrial and Mineral Company, Chadormalu Mining and Industrial Company, National Iranian Copper Industries Company and Mobarakeh Steel Company were among the players with the most positive impact on the main index.
Bank shares showed a surprise turnabout during the session, going from unfavorable stocks in early trading to favorite in mid-trading. This, according to Donyaye Bourse website, had to do with rumors about the revaluation of Bank Mellat assets with higher foreign exchange rates.
Other stocks in demand on Saturday were auto companies as news about the injection of state funds ( up to 40 trillion rials) boosted the prospects for the two major car makers Iran Khodro and Saipa.
Improved prospects for the global economy, robust oil prices, and the US Federal Reserve's decision to halt its tight monetary policy and progress in US-China trade talks were factors that lifted sentiment among investors on Saturday.
The global picture has led to a boom for metal prices on the Iran Mercantile Exchange. IME shares rose 5% on Saturday to 7,378 rials per share.