Tehran stocks rally to scale new highs

Stocks hit all-time highs on Sunday encouraged by the previous day’s landmark point when the benchmark index TEDPIX crossed the 195,000 points after more than six months. TEDPIX rose 0.45% helping the market end the second day of the week on a high note, Financial Tribune reports.

15 April 2019
ID : 21928
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Tehran Stock Exchange, TEDPIX, has passed the 200,000 mark, one hour before closing on Monday, a rise of nearly 3%, reaching its February record

Stocks hit all-time highs on Sunday encouraged by the previous day's landmark point when the benchmark index TEDPIX crossed the 195,000 points after more than six months. TEDPIX rose 0.45% helping the market end the second day of the week on a high note, Financial Tribune reports. 

The Tehran market opened Sunday trading when many investors were expecting a correction as a selloff by shareholders. This mindset caused the market to shed more than 1,200 points in early trading but fundamental factors supporting the market helped reverse the bearish trend later in the day. 

Tehran Stock Exchange’s main index TEDPIX gained 882.22 points or 0.45% on Sunday to end trading at 196,084.9, the paper says. 

More than 2.85 billion shares valued at 9.46 trillion rials ($67.61million) changed hands at TSE for the day.

Trading at TSE and Iran Fara Bourse starts on Saturday and ends Wednesday. 

Behshahr Industrial Company was the biggest winner as its shares went up 12.26% to 4,543 rials per share. 

Founded some 67 years ago, Behshahr Industrial Company is the first and largest producer of Edible Oils & Fats in Iran, according to Financial Tribune. 

According to Donyaye Bourse website, the ongoing stock market rally is different from the one that lifted the markets last year. While the earlier rally was stoked by excitement and herd behavior, the current one is backed by fundamental factors like the global rally in commodities and oil as well as bullish foreign exchange rates. 

Crude oil prices are expected to finish the week higher, but the price action late in the week suggests the market may be getting a little too heavy. 

Early in the week, crude oil surged to a five-month high and continues to hover around these levels, however, new concerns over future demand have slowed down the upside momentum on the daily chart.

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