EghtesadOnline: Stocks continued their unabated surge on Tuesday, making the benchmark index TEDPIX 2.6% shy of its own historic high. The surge comes as foreign exchange rates remain bullish and a stampede of retail investors has made demand for all kinds of stocks particularly high.
While the market faced a hiccup in Monday trade in the run-up to the decision by the US to designate an elite wing of Iran's military as a “terrorist organization”, the market moved past that point on Tuesday as investors largely turned a blind eye to the issue.
On Monday, the Trump White House labeled Iran “a state sponsor of terrorism” and the IRGC a “foreign terrorist organization,” claiming that the elite Islamic Revolutionary Guard Corps “actively participates in, finances, and promotes terrorism as a tool of statecraft.”
Iran swiftly retaliated, with the Supreme National Security Council designating the US government a supporter of terrorism and its West Asia force, known as the United States Central Command (CENTCOM), a terrorist organization, according to Financial Tribune.
Other factors boosting investor sentiment on Tuesday were the increase in the exchange rates on the online platform Nima – where most listed companies should offer their export currency -- rise in global commodity prices, a booming season of shareholder meetings and payment of dividends to stockholders.
TEDPIX soared 2,000 points on Tuesday and crossed the resistance level of 190,000 points for the first time in six months. Iran Mercantile Exchange also had a booming day especially in metals trading, thanks to the surge in forex rates.
Nearing Record High
Tehran Stock Exchange’s main index TEDPIX gained 1,832.29 points or 0.97% on Tuesday to end trading at 190,592.7.
More than 3 billion shares valued at 9.713 trillion rials ($66.98 million) changed hands at TSE for the day.
Trading at TSE and Iran Fara Bourse starts on Saturday and ends Wednesday.
The One and One industrial group (a major producer) was the biggest winner as its shares went up 27.81% to 41,933 rials per share.
Isfahan Saman Gostar Company incurred the biggest loss among all TSE-listed companies and went down 4.65% to 2,869 rials per share. Isfahan Saman Gostar Company, through its subsidiaries, engages in urban construction and development, foreign trade, recreation and tourism, and financial services.
Telecommunication Company of Iran and Mabarakeh Steel Company gave the biggest boost to the benchmark index, followed by Mobile Telecommunication Company of Iran and the giant Mapna Group.
MAPNA is a leading company in power plant construction with capabilities in technology transfer, manufacture of thermal power equipment, project management and execution, and investment.
Bank Mellat contributed the most to the benchmark's fall, followed by Islamic Republic of Iran Shipping Lines and the carmaker SAIPA.
The Price Index gained 528.43 points to close at 54,915.9.
The First Market Index was up 1,243.14 points to post 141, 5822.1. Second Market Index increased by 4,151.47 points to reach 371,925.5.
The Industry Index went up by 1,759.06 points to register 171,514.1. Free Float Index was up 1,957.59 points to register 214,346.68.
The TSE 30 went up 83.13 points to settle at 9,404.0 and the TSE 50 ended 75.90 points lower to finish at 8,083.9.