Share Market Races 3% Higher
EghtesadOnline: Tehran Stock Exchange closed Wednesday’s session 3.18% higher, with its main gauge, TEDPIX, gaining 35,561 points to close trading week at an all-time high of 1,153,679 points.
The rally came amid fresh demand for shares of key firms after stocks tumbled for two sessions in a row, spurred in part by spike in currency prices.
Major currencies gained against the rial on Wednesday after some semblance of stability for nearly two weeks. The dollar briefly touched 180,000 rials at Tehran’s open market before retreating to 179,000 rials. The greenback at moneychangers affiliated to Central Bank of Iran soared close to 2% to 172,550 rials.
Dollar’s growth against the rial has always been a strong driver of the bourse’s main index. Big listed companies, mostly export-oriented, normally focus fully on trends in the currency market simply because their earnings rise when forex rates jump.
Wednesday’s rally swept across a range of shares, mainly large-cap petrochemical, auto, refinery, metal and bank shares.
Auto stocks were the best-performing with shares of the largest auto company, Iran Khodro (IKCO), being the highly traded stock for the day. The company accounted for 11% of the benchmark’s growth for the day.
With large-cap shares having the upper hand, the TSE-30 index soared 4.4%. The index tracks the performance of 30 largest companies listed with the TSE in terms of market capitalization.
The equal-weighted index was comparably lower at 2.5%, showing that shares of smaller companies did not the appeal of the recent past.
About 10.44 billion shares valued at 105 trillion rials ($600 million) changed hands at TSE for the day.
Iran Refractories Company was the biggest winner as its shares went up 10.8% to 41,505 rials per share.
Pars Animal Feed Company incurred the biggest loss among all TSE-listed companies and went down 4.88% to 95,682 rials per share.
Islamic Republic of Iran Shipping Lines contributed the most to the benchmark's fall, followed by Darou Pakhsh Holding Company and Kharazmi Investment Group.
Iran Khodro Company (IKCO) gave the biggest boost to the benchmark index, followed by Mobarakeh Steel Company, National Iranian Copper Industries Company and Bank Mellat.
Iran Fara Bourse main index, IFX, gained 305.76 points or 2.43% to close Sunday trade at 12,870.92.
About 2.650 billion securities valued at 47.08 trillion rials were traded at the over-the-counter exchange.
Pegah Tabriz Dairy Company, Kowsar Insurance Company, Hormozgan Steel Company and General Mechanic Company had the most negative impact on IFX.
Middle East Mines Industries Development Holding Company gave the biggest boost to IFX, followed by Esfahan Steel Company, Shahid Tondgooyan Petrochemical Company and Zagros Petrochemical Company.