Shares Leap 4.4% in Tehran Market
EghtesadOnline: Shares made one of their historic gains in Tehran on Tuesday, soaring 4.4% after falling close to the psychological 1.5 million points for two days in a row.
The benchmark of Tehran Stock Exchange, TEDPIX, gained 64,911 points to comfortably break above the resistance level, closing trading session at 1,546,849 points.
Tuesday’s rally put the TSE benchmark growth at 202% since the beginning of the current fiscal year, a rewarding gain expected to further whet investors’ appetite.
The rally swept all shares spurred by sizable amounts of money flowing into the market by zealous investors and the apparent reluctance to sellers.
With investors lining up in buy position and few sellers, the value of retail trade dropped from its daily average as many buy orders were left unprocessed.
Bourspress reported buy orders worth 100 trillion rials ($526 million) were not processed for the day.
It appears that the power of fresh liquidity entering the market is such that it diminishes fears and renders correction in share prices short-lived.
The rallies are driven by a combination of factors, the most important being the near permanent support of the government in tandem with concerted efforts to encourage investors to come to the fast-pacing market.
The trend is coupled with persistent turmoil in currency market as it is often said that share prices rise due to expected inflation emanating from pike in currency prices.
According to Donyaye Bourse website, on Tuesday 26 trillion rials ($136 million) was injected into the market, the highest since May 9.
Among companies that drove up the benchmark were giant petrochemical, base metal, refineries and mineral companies.
About 5.8 billion shares valued at 103.57 trillion rials ($539.46 million) changed hands at TSE on Tuesday.
Pak Dairy Company was the biggest winner as its shares went up 102.91% to 29,320 rials per share.
Esfahan Sugar Company incurred the biggest loss among all TSE-listed companies and went down 2.98% to 172,110 rials per share.
Esfahan Sugar Company contributed the most to the benchmark's fall, followed by Ama Industrial Company, Pars Refractories Company and Iran Yasa Tire and Rubber Company.
Persian Gulf Petrochemical Industries Company gave the biggest boost to the benchmark index, followed by Mobarakeh Steel Company, National Iranian Copper Industries Company and Social Security Investment Company.
The benchmark of the junior equity market Iran Fara Bourse gained 563.42 points, or 3.53%, to close Tuesday trade at 16,516.85.
About 2.24 billion securities valued at 113.94 trillion rials ($593.47 million) were traded at the over-the-counter exchange for the day.
Taliseh Nemooneh Dairy Farm Company and MAPNA Asaluyeh Power Generation 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 Iran Fara bourse, Esfahan Steel Company and Saba Tamin Investment Company.