EghtesadOnline: Tehran’s share market strengthened above the critical 2 million points gaining another 39,142 points at the close of trading week on Wednesday.
The TSE benchmark closed the session at 2,034,186 points and gained 1.96% thanks to the large-cap stocks.
The equal-weighted index gained less and closed 0.80% higher, indicating that investors are again moving toward blue chips because their prices are perceived to be attractive enough after a correction phase.
Demand rose particularly for refinery ticker symbols after they lost an average 15% in the past few sessions.
More recently refinery stocks, among others, are in vogue because of official government backing. Along with shares in a number of banks, auto and metal companies, shares of four refineries are on a major government divestment list.
Guided by the perception that the government will throw its full weight behind such shares, demand has been high for such stocks in the past four months causing the prices to grow exponentially.
The share market has gained traction as never before as the government struggles to fund the budget deficit by ceding its shares in assorted giant companies.
The above factors plus higher inflation expectations emanating from the tanking rial against major currencies put gains from the TSE at near 280% since the beginning of the current fiscal year in March, driven largely by the lure of blue chips.
Observers have often voiced strong reservations about the unprecedented returns, saying it is in stark contradiction to the economic ground realities in which many businesses struggle to stay afloat due, among other things, to the coronavirus pandemic that has devastated economies big and small.
The whopping growth has drawn concern from many quarters, namely lawmakers. In a meeting with the Economy Minister Farhad Dejpasand on Tuesday, MPs communicated their concerns about the possible socioeconomic consequences of a likely collapse of the share market, Eghtesadnews reported.
About 9.06 billion shares valued at 193.63 trillion rials ($841.88 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Iran Lent was the biggest winner as its shares went up 5% to 105,210 rials per share. Barakat Pharmaceutical Group Company incurred the biggest loss among all TSE-listed companies and went down 5% to 42,380 rials per share.
Tehran Oil Refining Company contributed the most to the benchmark's fall, followed by Pardis Petrochemical Company, National Development Investment Group Company and Iranian Investment Petrochemical Group Company.
Social Security Investment Company gave the biggest boost to the benchmark index, followed by Persian Gulf Petrochemical Industries Company, National Iranian Copper Industries Company and Tamin Petroleum and Petrochemical Investment Company.
IFX Up 0.21%
Iran Fara Bourse main index IFX gained 45.07 points or 0.21% to close Wednesday trade at 21,122.75.
About 2.79 billion securities valued at 69.01 trillion rials ($300.05 million) were traded at the junior equity exchange for the day.
Gohar Zamin Iron Ore Company, Shahid Tondgooyan Petrochemical Company, Zagros Petrochemical Company and Omid Taban Hour Energy Management Company had the most negative impact on IFX.
Marun Petrochemical Company gave the biggest boost to IFX, followed by Middle East Mines and Mineral Industries Development Holding Company, Saba Tamin Investment Company and Day Bank.