EghtesadOnline: Tehran stocks were making dramatic gains Tuesday despite risks related to the outbreak of the coronovirous in Iran and the rising number of deaths from the illness.
The main gauge of Tehran Stock Exchange added 14,700 points for the day after TEDPIX crossed the critical level of 500,000 points a day earlier, Financial Tribune reported.
TEDPIX climbed more than 2.9% on Tuesday to stand at 518,512 points with the rally sweeping across a broad range of both large and small-cap stocks.
The fresh rally in early hours of trading session was driven mainly by increase in demand for shares of giant companies in metal, chemical and bank sectors, which was later extended to other shares.
Two giant petrochem and metal companies, namely Persian Gulf Petrochemical Industries Company and Mobarakeh Steel Company contributed 3,500 points to the benchmark alone.
Tuesday also marked a historic record in the value of deals by retail investors. Individual traders conducted deals worth 48 trillion rials ($312 million) on TSE, according to Donyaye Bourse website.
This signals increasing traction of stock market for individual and retail investors.
While many stock markets across the continent are falling victim to coronovirous, in Iran the trend is in the opposite direction despite the rising death toll.
Global stocks sank to their lowest levels in over two months on Tuesday, as relief from a sharp selloff the previous day on fears about the spreading coronavirus proved temporary, according to Reuters.
The corona spread coincided with spike in currency rates in Iran, which observers say is the driver of fresh market rallies.
Soaring currency rates boost the prospect of rise in share prices in export-oriented companies, particularly in giant petrochemical and metal producers.
In addition, rise in currency rates increases inflationary expectations and pushes people to buy shares to avoid deprecation of their rial assets.
TSE's main index TEDPIX gained 14,788.73 points, or 2.93%, on Tuesday to end trading at 518,513.9.
About 8.14 billion shares valued at 52.96 trillion rials ($346.2 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Persian Gulf Petrochemical Industries Company was the biggest winner as its shares went up 12.12% to 8,055 rials per share.
Iran Radiator Company incurred the biggest loss among all TSE-listed companies and went down 5% to 58,607 rials per share.
Pars Petrochemical Company contributed the most to the benchmark's fall, followed by Ghadir Investment Company, Tehran Oil Refining Company and Telecommunication Company of Iran.
Persian Gulf Petrochemical Industries Company gave the biggest boost to the benchmark index, followed by Mobarakeh Steel Company, Golgohar Mining and Industrial Company and Tamin Petroleum and Petrochemical Investment Company.
IFX Up 2.13%
Iran Fara Bourse main index, IFX, gained 139.29 points or 2.13% to close Tuesday trade at 6,691.71.
About 2.61 billion securities valued at 26.29 trillion rials ($171.87 million) were traded at the over-the-counter exchange for the day.
Esfahan Steel Company had the highest volume and value of shares as 376.62 million of its shares worth 1.14 trillion rials ($7.28 million) were traded.
General Mechanic Company, Kowsar Insurance Company, MAPNA Asaluyeh Power Generation Company and Sarcheshmeh Copper Investment Company had the most negative impact on IFX.
Middle East Mines and Mineral Industries Development Holding Company gave the biggest boost to IFX, followed by Marun Petrochemical Company, Iran Office Machines Industries Company and Hormozgan Steel Company.