Tehran Stocks Bounce Back
EghtesadOnline: Tehran’s share market resumed rally after a brief hiatus a session earlier, but the value of trade dropped significantly amid uncertainty that has been around for several weeks.
Toiling under sell-off in early trade, the benchmark of Tehran Stock Exchange, TEDPIX, crept into positive territory to close 1.23% higher adding 16,693 points to finish at 1,375, 541 points.
The equal-weighted index rose at the same pace and closed slightly higher than TEDPIX at 1.28% -- a sign that small caps are also in the running.
Total trade value at TSE and the junior exchange Iran Fara Bourse declined 26.9% to reach 157.13 trillion rials ($600 million).
As in recent sessions, refinery stocks were the top gainers followed by banks and mineral shares while steelmakers were largely in the red.
The analytical Donyaye Bourse website ascribes the poor performance of listed companies to recent government interventions in the pricing mechanism of companies, which mostly comprise blue chips.
Market observers are concerned about the government decision to “set a ceiling and a floor” for steel prices at the Iran Mercantile Exchange. Setting prices below the “real value” of steel products will negatively impact the revenue of listed companies, they claim.
About 11.81 billion shares valued at 117.31 trillion rials ($451.22m) changed hands at TSE for the day.
Social Security Investment Company contributed the most to the benchmark's fall, followed by Mobarakeh Steel Company, Tamin Petroleum and Petrochemical Investment Company and Islamic Republic of Iran Shipping Lines Company.
Esfahan Oil Refining Company gave the biggest boost to the benchmark index, followed by Golgohar Mining and Industrial Company, Chadormalu Mining and Industrial Company and Tehran Oil Refining Company.
IFX Up 1.19%
Iran Fara Bourse main index, IFX, gained 195.8 points or 1.19% to close Monday trade at 16,670.45. About 2.49 billion shares valued at 39.7 trillion rials ($152.7m) were traded at the junior exchange for the day.
Arfa Iron and Steel Company, Esfahan Steel Company, Hormozgan Steel Company and Arya Sasol Polymer 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 Mahtaab Kahnouj Power Generation Company, Minoo Industrial Group Company and Damavand Power Generation Company.