EghtesadOnline: After recording an 86% return on investment during the previous financial year (ended March 20) for its main index TEDPIX, the Tehran Stock Exchange continues to grow in the Persian New Year.
During the 5 trading days since March 21 followed by Nowrouz holidays, TEDPIX experienced a return of 3.7%, having grown by 6,622 points. An analysis by Financial Tribune's sister publication, the Farsi-language Donyay-e-Eqtesad newspaper, shows that stock investors did not reap benefits on par with people active in the currency and gold market during the past year.
The stock market however offered better returns than the monetary and bond markets and to a large extent the housing sector.
After markets reopened on Saturday, stocks performed strongly again with the main gauge soaring by more than 1,000 points. The bull run comes as many analyst deemed it highly unlikely that the resistance level of 186,000 would be broken. The market last crossed that threshold more than four months ago, Financial Tribune reported.
The better outlook for commodities and in particular higher oil prices are considered a major factor behind investor optimism.
Oil prices gained 1.5% on Friday as strong US employment data tempered fears about weakening global crude oil demand, and on expectations that an escalating conflict in Libya could tighten oil supplies.
Optimism that Washington and Beijing are approaching a trade deal also boosted crude prices.
Brent crude futures settled at $70.34 a barrel, up 94 cents, or 1.35%. The session high of $70.46 was the strongest since Nov. 12.
Tehran Stock Exchange’s main index TEDPIX gained 1,254.52 points or 0.68% on Saturday to end trading at 186,535.6.
About 2.14 billion shares valued at 6.64 trillion rials ($49.36 million) changed hands at TSE for the day.
Trading at TSE and Iran Fara Bourse starts on Saturday and ends Wednesday.
Qayen Cement factory was the biggest winner as its shares went up 29.27% to 13,955 rials per share.
Qayen has been operating since Jan.1995 and is located in the town of Qayen in South Khorasan Province. Proximity to markets in neighboring Afghanistan and Pakistan has given the company an added advantage.
Mellat Insurance company incurred the biggest loss among all TSE-listed companies and went down 4.86% to 3,015 rials per share.
Telecommunication Company of Iran and Esfahan Oil Refining Company gave the biggest boost to the benchmark index, followed by Mobile Telecommunication Company of Iran (MCI)–also known under its brand name Hamrah-e-Aval.
Persian Gulf Petrochemical Industries Company contributed the most to the benchmark's fall, followed by National Iranian Copper Industries Co. and Ghadir Investment Group –Mobarakeh Steel Company.
The Price Index gained 361.85 points to close at 53,794.3. First Market Index was up 942.49 points to post 138,831.5.
Second Market Index increased by 2,412.38 points to reach 364,768.4. The Industry Index went up by 1,004.59 points to register 167,919.6.
The Free Float Index was up 1,593.65 points to register 209,722.86. TSE 30 went up 21.75 points to settle at 9,241.5 and the TSE 50 ended 35.62 points lower to finish at 7,936.0.