Stellar Rally in Tehran Stocks
EghtesadOnline: Iran equity markets witnessed a stellar rally on Sunday and extended their winning streak for the eighth consecutive session. The main gauge on Tehran Stock Exchange TEDPIX soared 1,397.79 points or 0.82% to close at 172,522.7.
Sunday's rally comes after the benchmark index closed above the 170,000 mark in the previous session for the first time in four months. TEDPIX soared 2,009.54 points or 1.19% to on Sunday.
There are only two trading days to go in the last trading week of the current fiscal year that ends on Tuesday (March 20). Donyaye Bourse website has described the current trading month "as the most golden on record."
Giants like the Persian Gulf Petrochemical Industries Company, Pars Petrochemical Company, Khuzestan Steel Company and Ghadir Investment Company (the largest TSE-listed investment company) had the most positive impact on TEDPIX on Sunday, according to Financial Tribune.
The yearend rally for stocks comes as investors traditionally tend to dump their stocks at this time of the year. However, fundamental factors boosting the market has also gained the attention of investors.
In the past days and thanks to the uptick in the activity of retail investors, cash flow in the market has been 20% above the monthly average.
The metal industry is a key player in the market rally thanks to the boom in global metal prices and the subsequent buzz on Iran Mercantile Exchange.
According to the website Money Control, base metals got a good start in 2019 with Nickel & Copper being the highest gainers.
The red metal, copper, is also off to go great start in 2019 by gaining over 5%. Copper has rallied over 11 percent on the London Metal Exchange and over 13.5 % on the Multi Commodity Exchange of India in the first two months of 2019. The primary reason behind the rally in prices has been the easing of trade tensions between US and China.
Refinery and chemicals are the other stocks in the green on TSE as investors remain optimistic about the price of oil.
Crude oil prices reached new 2019-highs this past week, owing to several fundamental developments.
The One & One Industrial Group ( a major food company) was the biggest winner on TSE on Sunday as its share price soared 35.15% and was traded at 30,493 rials. Zagros Pharmed Pars Pharmaceuticals also saw its share rise 10.83% to be traded at 1,975 rials.
The Price Index grew 403.29 points to close at 49,770.1. First Market index increased 758.50 points to end at 129,484.5 and the Second Market index was up 4,053 to finish at 332,298.5.
The Industry Index gained 1,357.85 points or 0.88% to close at 155,149.0. TSE 30 grew 62.20 points to close at 8,672.6 at the TSE 50 gained 58.36 points to end at 7,396.7.
At the junior market Iran Fara Bourse the main index IFX gained 43.02 points or 2.03% on Sunday to close at 2,157.86. In a trend similar to TSE, Marun Petrochemical Company, Zagros Petrochemical Company and Gohar Zamin Iron Ore Company had the major positive impact on IFX.