Retail Traders Lift Stock Market
EghtesadOnline: Tehran stocks reported the highest daily growth on Sunday since late August fueled by spike in foreign currency rates and renewed demand from retailers.
After a lukewarm market on Saturday, the main index of Tehran Stock Exchange, TEDPIX, jumped by 3.6%. The benchmark added 55,302 points to close at 1,597,125 points.
The equal-weighted index was up by 2%, indicating that the rally swept through a broad range of companies with varying market capitalizations.
Blue chips, however, performed better as shown by 4.4% growth in the TSE-30 Index, which tracks the performance of 30 giant companies with highest market cap at TSE.
Two main drivers of the market rally on Sunday were capital inflow by retail investors and the steep rise in forex rates, which have given a new pull to shares of dollar-earning companies.
Retail trade posted a whopping 87.1% growth Sunday to reach 165.27 trillion rials ($550 million), the highest since August 8, according to eghtesadnews.
Retail traders recorded capital inflow of 16.6 trillion rials ($55 million), accounting for 89% of the purchases for the day.
Upsurge in currency rates tend to increase profit-making outlook for many commodity-based companies involved in export. Their earnings improve in light of the depreciating national currency.
About 12.9 billion shares valued at 139.42 trillion rials ($446.85m) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Tehran Oil Refining Company was the biggest winner as its shares went up 26.97% to 16,620 rials per share.
Sazeh Pouyesh Company incurred the biggest loss among all TSE-listed companies and went down 9.12% to 40,960 rials per share.
Pakshoo Industrial Group Company contributed the most to the benchmark's fall, followed by Melli Industrial Group Company, Middle East Bank and Butane Industrial Group Company.
Tehran Oil Refining Company gave the biggest boost to the benchmark index, followed by Persian Gulf Petrochemical Industries Company, Mobarakeh Steel Company and Mellat Bank.
The Industry Index was up 47,957.75 points or 3.53% to register 1,404,996.62. The Free Float Index was up 71,870.02 points to hit 2,140,488.63.
TSE 30 went up 3,504.16 points to settle at 82,708.55 and the TSE 50 ended 2,481.67 points higher to finish at 63,682.03.
IFX Up 1.99%
Iran Fara Bourse main index IFX gained 359.71 points or 1.99% to close Sunday trade at 18,475.7.
About 3.12 billion securities valued at 56.06 trillion rials ($179.7 million) were traded at the junior exchange for the day.
Esfahan Steel Company had the highest number of traded shared as 296.78 million of its shares worth 1.93 trillion rials ($6.21 million) were traded.
Marun Petrochemical Company, Zagros Kowsar Power Generation Company, Vitana Company and Afranet 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 Arya Sasol Polymer Company, Sepehr Saderat Financial Group Investment Company and Zagros Petrochemical Company.