EghtesadOnline: Stock markets in Iran are on fire. Free flowing liquidity from parallel markets, rise in global commodity and metal prices, bullish foreign exchange rates, good yearend reports for listed companies and a stampede of new retail investors eager to ride the upward momentum have catapulted the Tehran Stock Exchange more than 4% since the start of the current year (March 21).
In Sunday's trade TSE grew close to 1% thanks to renewed attention to smaller firms from investors. In addition to fundamental factors such as boosts for the global commodity markets, excitement has also grown for bank shares in light of capital increase for banks based on higher forex rates.
According to Bloomberg, money managers around the world haven’t been this optimistic about US oil prices since early October, just before the crude market began a steep decline on fears of a global oversupply. Crude made a steady comeback this year and sentiment has climbed alongside it, with the net-long position rising for the sixth straight week in data posted on Friday.
West Texas Intermediate crude prices rallied almost 5 % this week as OPEC stuck to output cuts and blackouts continued to sap Venezuelan production, according to Financial Tribune.
The two major automakers Iran Khodro and SAIPA are also in the spotlight as they expect capital increase in the form of government loans.
As part of the process of merging five banks and credit institutions affiliated to the armed forces with Bank Sepah, shares of these lenders was offered on the stock market on Sunday.
The offer will last for 30 trading days and each merging bank will offer shares at varying prices.
The Central Bank of Iran officially announced on its website on March 2 that five military-linked banks and credit institutions, namely Ansar Bank, Bank Hekamat Iranian, Mehr Eqtesad Bank, Ghavamin Bank, and Kosar Credit Institution are to be merged into the state-owned Bank Sepah.
In Tehran market on Sunday, the US dollar was traded for above 137,200. The greenback has had little fluctuations since the beginning of the current fiscal on March 21, unlike in the previous year where wild gyrations rocked the currency market like never before.
After a relative stability for several months after the US re-imposed oil and banking sanctions last November, rial's fall accelerated again after 2019 with the US dollar rising above the psychological barrier of 130,000 rials.
Since taking office last July, Hemmati has tried to calm the currency market mainly by curbing demand, ignoring warnings by some that the move could also trigger an economic recession.
Tehran Stock Exchange main index TEDPIX gained 1,539.73 points or 0.83% on Sunday to end trading at 188,075.2.
About 3.75 billion shares valued at 9.90 trillion rials ($72.8 million) changed hands at TSE for the day.
Trading at TSE and Iran Fara Bourse starts on Saturday and ends Wednesday. Technotar Engineering Company was the biggest winner as its shares went up 39.73% to 2,497 rials per share.
Saman Gostar Esfahan Co. incurred the biggest loss among all TSE-listed companies and went down 4.16% to 3,160 rials per share.
Mobarakeh Steel Company and Bank Mellat gave the biggest boost to the benchmark index, followed by Bandar Abbas Oil Refining Company and Persian Gulf Petrochemical Industries Company.
Dr. Abidi Pharmaceutical Laboratory contributed the most to the benchmark's fall, followed by Mobin Petrochemical Company and Pardis Petrochemical Company.
The Price Index gained 444.06 points to close at 54,238.3. First Market Index was up 1,202.37 points to post 140,033.4. Second Market Index increased by 2,749.97 points to reach 367,517.0.
The Industry Index went up by 1,192.58 points to register 169,111.6. Free Float Index was up 2,165.38 points to register 211,887.76. TSE 30 went up 60.71 points to settle at 9,302.1 and the TSE 50 ended 51.44 points lower to finish at 7,987.4.
IFX Up 0.83%
Iran Fara Bourse’s main index IFX gained 19.9 points or 0.83% to close Sunday trade at 2,410.54.
About 1.33 billion securities valued at $38.18 million were traded at the over-the-counter exchange for the day.
Iran Cultural Heritage and Tourism Investment Group (SEMEGA) and Khoramdarah Industry and Culture (agro-industrial) Complex Company registered the highest value increase.
Isfahan Steel Company, Marun Petrochemical Co and Zagros Petrochemical Co. had the most positive impact on IFX.