EghtesadOnline: After largely negative or humdrum days in the past two weeks, Iranian stocks found a new lease on life as the main gauge at Tehran Stock Exchange surged close to 1% and investors hoped for brighter prospects for shares.
Donyaye Bourse website reported that demand for buying stocks was high at Sunday's session as average share prices rose for 26 listed industries. The main index TEDPIX soared 1,463.29 points or 0.90% to close at 164,470.6. Since February 20, TEDPIX had shed about 3,500 points – a condition ascribed to corporations’ need for cash as they as prepare for yearend closures. Volatility in the domestic and global economy was another factor for the bear market in recent days.
The National Iranian Copper Industries Company, Mobarakeh Steel Company, Mobin Petrochemical Company and Golgohar Mineral and Industrial Company had the most positive impact on the TSE's main index.
Another boost to the market on Sunday came from talks about scrapping the current scheme of subsidized currency that which has now gained momentum. The elimination of subsidized currency for basic goods by the government is believed to benefit sectors such as food, rubber and health consumer goods producers, Financial Tribune reported.
Governor of the Central Bank of Iran acknowledged on Friday that the policy of allocating subsidized foreign currency for importing essential goods has flopped and failed to achieve the desired results due mainly to the dysfunctional distribution systems.
In an Instagram, Abdolnaser Hemmati admitted that because of shortcomings in the forex distribution network and the visible oversight weakness, the subsidy strategy failed to curb rising prices of most essential goods.
The failure was underscored earlier by President Hassan Rouhani who called for stringent supervisory mechanisms and rewriting subsidized currency allocations.