EghtesadOnline: Tehran stocks pared more losses on Wednesday as demand for shares increased and investors began to line up in the buy spot.
The main gauge of Tehran Stock Exchange, TEDPIX, climbed further 4.16% adding 68,717 points to close trading session at 1,718,762 points.
While the rally was driven mainly by giants, most small-cap shares also recovered on Wednesday as seen in the 2.43% growth in equal-weighted index.
Shares are slowly recovering from a deep downturn that wiped off more than 22% of the TSE benchmark in two weeks of bear market.
The market recovered thanks to strong support by institutional buyers who injected billions of into the bourse in the past three days.
Market data indicate a meaningful decline in value of trade on Wednesday as the main shareholders and institutional traders sold shares niggardly, fearing that an oversupply could upset the fragile stability.
The main trigger of the rally was the inauguration of a giant exchange-traded fund that offers shares of the government in four refineries. Subscription for the ETF units commenced Wednesday and the government asked the public to participate.
The ETF, dubbed “First Refinery”, holds government shares in four major oil refining companies, namely Tehran Oil Refining Company, Esfahan Oil Refining Company, Tabriz Oil Refining Company and Bandar Abbas Oil Refining Company. The government owns 20% of shares in each refinery.
Total value of the ETF is estimated to worth 600 trillion rials ($2.6 billion) and a robust stock market is critical for persuading investors to buy.
About 5.19 billion shares valued at 89.03 trillion rials ($387.11 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts Saturday and ends on Wednesday.
Gorji Company was the biggest winner as its shares went up 18.79% to 48,550 rials per share.
Pars Electric Company incurred the biggest loss among all TSE-listed companies and went down 5% to 448,590 rials per share.
Melli Industrial Group Company contributed the most to the benchmark's fall, followed by Pars Electric Company, Data Processing Iran Company and Navard Aluminum Company.
Persian Gulf Petrochemical Industries Company gave the biggest boost to the benchmark index, followed by Mobarakeh Steel Company, Social Security Investment Company and National Iranian Copper Industries Company.
The First Market Index gained 52,619.65 points, or 4.38% to post 1,252,693.7 and the Second Market Index went up 129,294.38 points, or 3.85% to reach 3,490,383.62.
The Industry Index was up 62,921.22 points or 4.34% to register 1,513,320.45. while the Free Float Index was up 90,315.44 points to hit 2,335,125.43.
TSE 30 went up 3,719.66 points to settle at 87,418.39 and the TSE 50 ended 2,882.67 points higher to finish at 67,278.25.
IFX Up 3.71%
Iran Fara Bourse main index IFX gained 649.22 points or 3.71% to close Wednesday trade at 18,160.99.
About 2.45 billion securities valued at 66.1 trillion rials ($287.4m) were traded at the over-the-counter exchange for the day.
Iran Shargh Leasing Company had the highest number of traded shares as 79.51 million of its shares worth 933.69 million rials ($4.06m) were traded.
Gohar Zamin Iron Ore Company gave the biggest boost to IFX, followed by Middle East Mines and Mineral Industries Development Holding Company, Arya Sasol Polymer Company and Saba Tamin Investment Company.