EghtesadOnline: The market cap-weighted index of Tehran Stock Exchange, TEDPIX, gained 10,096 points on Saturday to close session 0.62% higher. The TSE benchmark ended trade at 1,642,037 points, a level seen by market analysts as a strong support level.
The upsurge was due mainly to support by institutional traders and market makers to blue chips and giant listed companies that have strong impact on TEDPIX.
Majority of small-cap shares, however, were snubbed and traded under sell-off pressure, causing the equal-weighted index to close in negative territory and drop 0.91%. The index gives the same weight to all shares irrespective of their market capitalization.
Market data indicate that out of the total 316 active tickers symbols, 240 were in the red, representing 77% of total shares.
After solid gains in the first four months of the current fiscal year (March- July), the TSE dived deep into the red and lost 25% of past gains since August.
Nervous shareholders were able to sell shares worth 13 trillion rials ($56 million) and exit the market, thanks to measures taken by Securities and Exchange Organization to improve the liquidity of shares.
The stock market regulator met with institutional buyers, main stockholders and market markers on Thursday to find ways to boost the sagging market.
Institutional traders manage more than 70% of the market and are expected to shore up the market in bad times.
The CEO head Hassan Qalibaf-Asl stressed the need for market markers to take action, saying that “they can help balance the market and increase liquidity of shares”.
Market makers essentially act as wholesalers buying and selling securities to balance the market.
About 10.2 billion shares valued at 119.32 trillion rials ($530.34 million) changed hands at TSE for the day.
The Social Security Investment Company contributed the most to the benchmark's fall, followed by Islamic Republic of Iran Shipping Lines Company, Telecommunication Company of Iran and MAPNA Group.
Mobarakeh Steel Company gave the biggest boost to the benchmark index, followed by National Iranian Copper Industries Company, Persian Gulf Petrochemical Industries Company and Golgohar Mining and Industrial Company.
IFX Down 0.39%
Iran Fara Bourse main index IFX lost 67.01 points or 0.39% to close Saturday trade at 17,290.4.
About 2.2 billion securities valued at 45.99 trillion rials ($204.43m) were traded at the junior equity exchange for the day.
Esfahan Steel Company had the highest number of traded shares as 366.38 million of its shares worth 2.46 trillion rials ($10.95m) were traded.
Shahid Tondgooyan Petrochemical Company, Day Bank, Esfahan Steel Company and Arya Sasol Polymer Company had the most negative impact on IFX.
Gohar Zamin Iron Ore Company gave the biggest boost to IFX, followed by Marun Petrochemical Company, Omid Taban Hour Energy Management Company and Damavand Power Generation Company.