EghtesadOnline: Tehran Stocks rebounded on Monday as investors found share prices -- depressed during a four-day bearish trend -- attractive enough to place orders.
The main gauge of Tehran Stock Exchange, TEDPIX, pared 26,375 points of the earlier losses and climbed 2.72% to close the session at 994,835.
Signs of a market recovery had appeared in the later hours of Sunday as sell-off pressure on a wide range of shares eased suggesting that the market would open on a high note the next day.
The fresh optimism was underscored by the outstanding performance of stock markets across the globe and a rise in crude prices as markets opened on Monday.
Stock markets rose on Monday and oil prices climbed to their highest in more than two months as a loosening of coronavirus shutdowns boosted market sentiment, even as the deadly outbreak has yet to be fully contained, Reuters reported.
Observers see herding behavior and excitement of investors as the main threat to market stability. Investors, mostly novice and unprofessional, displayed similar excitement Monday as they had shown during the downturn in the past few days.
In recent weeks, the Tehran government’s open support for the stock market has been a main driver of the stock market rallies. Observers say the government favors a dynamic bourse to realize its financial agenda.
It needs the stock market to divest its assets to raise funds for deficit spending. In addition, government officials see the stock market as a key venue to which liquidity can be safely directed to avoid price shocks in the already chaotic parallel markets.
In a new statement on Monday, government spokesman, Ali Rabiei, said “channeling public liquidity into bourse is a healthy approach,” Boursepress reported.
About 12.84 billion shares valued at 128.12 trillion rials ($736.37 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Sina Tile and Ceramic Industries Company was the biggest winner as its shares went up 10.09% to 47,729 rials per share.
Zar Spring Company incurred the biggest loss among all TSE-listed companies and went down 4.25% to 12,947 rials per share.
Mobarakeh Steel Company contributed the most to the benchmark's fall, followed by Chadormalu Mining and Industrial Company, Kharg Petrochemical Company and Iran Alloy Steel Company.
Persian Gulf Petrochemical Industries Company gave the biggest boost to the benchmark index, followed by Social Security Investment Company, Golgohar Mining and Industrial Company and National Iranian Copper Industries Company.
IFX Up 2.55%
Iran Fara Bourse main index IFX gained 279.49 points, or 2.55%, to close Monday trade at 11,235.27.
About 3.62 billion securities valued at 51.99 trillion rials ($298.81 million) were traded at the over-the-counter exchange for the day.
Esfahan Steel Company had the highest number of traded shares and trade value as 487.87 million of its shares worth 2.9 trillion rials ($16.7 million) were traded.
Hormozgan Steel Company, Shiraz Oil Refining Company, Melal Credit Institution and Tukarail 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 Esfahan Steel Company, Zagros Petrochemical Company and Saba Tamin Investment Company.