The Tehran Stock Exchange (TSE) rose more than 4,700 points only on the first working day of the week in Iran to lift the index to more than 16,420 points.
The Tehran Stock Exchange main gauge, TEDPIX, climbed 4,778 points or 3% as the closing bell rang on Saturday. The market’s index started at 160,548 points as the opening bell rang.
Steel and mining giants as well as petrochemical companies such as Mobarakeh Steel Company, National Iranian Copper Industries Company and Golgohar Mining and Industrial Company had the biggest positive impact on the main index.
In the junior market Iran Fara Bourse, the main index IFX climbed 38 points to reach 2,028 points.
Improved prospects for the global economy, robust oil prices, and the US Federal Reserve's decision to put the brakes on its tight monetary policy and progress in US-China trade talks are among these factors that caused a steep rally in TEDPIX, according to Financial Tribune.
Oil prices touched their highest since mid-November on Friday, the newspaper reports, and posted weekly gains for the second week in a row, boosted by hopes that US-China trade talks would soon produce a deal, although new record US oil supply limited gains.
Brent crude futures briefly reached $67.73 a barrel, their 2019 high. The global benchmark fell 5 cents to settle at $67.12 a barrel. Brent gained 1.2% on the week.
Top US and Chinese trade negotiators met on Friday to wrap up a week of talks that have seen the two sides struggle to reach a deal by a March 1 deadline. US President Donald Trump is expected to meet with Chinese Vice Premier Liu He at the Oval Office later on Friday.
Forex rallies, FATF factors
The rise in foreign exchange rates in Iran’s domestic market reflected renewed optimism among stock investors. With monthly earning results of companies about to be released, investors expect bumpy results for export-based companies. Investors expect bumpy results for export-based companies, Financial Tribune writes.
The huge one-session rise could also be due to the suspension of the Financial Action Task Force (FATF) actions against Iran. The Paris-based anti-money laundering body extended Iran’s window to approve two outstanding Combating Financing of Terrorism (CFT) and Palermo Convention bills.