Tehran Stocks Continue Rally

The main gauge of Tehran Stocks Exchange gained more than 5,400 points on Saturday, climbing nearly 2% to extend a winning streak into the fourth day.

Reviews by the analytical website Donyaye Bourse show the recent bull markets are triggered more by sentimental behavior than fundamental factors.

Sentiments are more intense for small stocks, causing remarkable jumps in share prices in recent days and running the risk of creating price bubbles, Financial Tribune reported.

Some market analysts attribute consecutive rallies partly to fresh liquidity flowing from Iran Fara Bourse as the junior stock market plans to change the rules governing its Base Market in a bid to improve transparency and regulate the price range.

Perturbed by the soon-to-be implemented changes, many traders are moving their assets into stable stocks.

Saturday’s rally was also spurred by positive signals from international markets.  Stocks in world markers scaled fresh one-month highs on Friday as investors took comfort from Chinese and US willingness to return to trade talks, Reuters reported.

Market Performance

The TSE’s main index TEDPIX gained 5,463.93 points or 1.96% on Saturday to end trading at 284,138.8.

About 4.81 billion shares valued at 20.66 trillion rials ($182.19 million) changed hands at TSE for the day.

Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.

Esfahan Sugar Company was the biggest winner as its shares went up 16.88% to 34,103 rials per share.

Iran Merinos Factories ( a textile company) incurred the biggest loss among all TSE-listed companies and went down 4.84% to 26,575 rials per share.

Telecommunication Company of Iran contributed the most to the benchmark’s fall, followed by Iran Khodro Company (IKCO), Novin Investment Bank, and Parsian Lotus Investment Bank.

Mobarakeh Steel Company gave the biggest boost to the benchmark index, followed by National Iranian Copper Industry Company, and Persian Gulf Petrochemical Industries Company.

IFB’s main index IFX gained 56.83 points or 1.53% to close Saturday trade at 3,767.05.

About 2.58 billion securities valued at 11.64 trillion rials ($102.64 million) were traded at the over-the-counter exchange for the day.

Esfahan Steel Company had the highest number of traded shares and trade value as 478.06 million of its shares worth 880.67 billion rials ($7.76 million) were traded.

Goharzamin Iron Ore Company, Ghasem Iran Company (active in consumer products distribution industry) and Pasargad Oil Company had the most negative impact on IFX.

Marun Petrochemical Complex gave the biggest boost to IFX, followed by Middle East Mines & Mineral Industries Development Holding Company, and Esfahan Steel Company.