Tehran Stocks Continue Winning Streak
EghtesadOnline: The benchmark TEDPIX average finished above 166,000 points as the three-day rally in stock prices showed no signs of letting up.
TEDPIX average extended its winning streak to a third session on the Tehran Stock Exchange on Monday to climb 763.30 points, or 0.46%.
The key market gauge rose 128.84 points on Sunday and on Saturday TEDPIX grew 4,778.26 or 3.00% which was the biggest single-session point gains for the market in four months.
The main index clawed back the 166,000 point for the first time since January 19, according to the analytical website Donyaye Bourse.
As with the previous rallies, improved prospects for the global economy, booming metals prices that have boosted Iran Mercantile Exchange and the recent surge in foreign exchange rates are fueling the market growth, Financial Tribune reported.
The United States is planning to delay a menu of additional Chinese tariffs that were scheduled to begin on March 1, President Donald Trump announced on Sunday, as the world's two largest economies hash out a definitive end to a wide-ranging trade dispute.
In a series of posts on Twitter, Trump cited "substantial progress" in bilateral talks between the US and China. As a result, the president said he would suspend the new levies that would have taken place as early as Friday, but did not articulate a new deadline. US stock index futures pointed to a higher start to the trading day Monday.
The prospect for revaluation of foreign exchange assets of banks turned them into favorites on Saturday. Mabarakeh Steel Company, Bank Mellat, National Iranian Copper Industries Company and Golgohar Mineral and Industrial Company had the biggest positive impact on TEDPIX.
President Hassan Rouhani, in a meeting with Ministry of Labor and Cooperatives on Monday, made it known that the next fiscal year (begins on March 21) would be the year for big divestitures.
He told his Labor Minister Mohammad Shariatmadari to end the government's stake in the Social Security Investment Holding Company (a holding with large presence in the stock market), saying that the worst type of economy is a "semi-state" economy.
A study by Tehran Stock Exchange about the role and significance of the capital market in next year's (March 2019-20) budget – currently being debated in parliament – has concluded that the prospects for the capital market look promising.