After crossing all-time highs on Sunday, the Tehran stock market conquered new peaks Monday breaking through another resistance level, according to Financial Tribune.
The fresh rally lifted the benchmark index TEDPIX 5,721.76 points or 2.92% to end trading at 201,805.9. More than 7.6 billion shares valued at 14.788 trillion rials ($108.9 million) changed hands for the day.
Tejarat Bank was the biggest winner as its shares went up 29.34% to 454 rials per share. Tejarat Bank and Golgohar Mining and Industrial Company gave the biggest boost to the benchmark index, followed by Esfahan's Mobarakeh Steel Company and Pars Petrochemical Company, the largest steel maker in the MENA region and one of the largest industrial complexes in Iran, FT reports.
Shahd Sugar Company contributed the most to the benchmark's fall, followed by Shiraz Petrochemical Company and Isfahan Sugar Company.
TEDPIX soared 4,778 points or 3% in February to register its record in the first two months of the year.
According to Donyaye Bourse analytical website, a flow of new liquidity was the main driving force behind the market boom.
New liquidity flowed to the capital market after investors were disheartened by the bearish trends in most parallel markets. Relative stability in the currency and gold markets has dented investor expectations about putting money in the two safe havens.
The average USD price in the previous fiscal (2018-19) grew 160% compared to a year before, registering unprecedented rates.
Returns in the gold market were higher in the previous fiscal, registering a 180% hike compared to a year ago, Financial Tribune writes.
Reports about the Central Bank of Iran’s (CBI) decision not to raise interest rates were another factor that apparently is directing the bulk of bank deposits into the growing capital market.
CBI Governor Abdolnasser Hemmati announced last week the regulator plans to cut interest rates in the current fiscal as one of the measures to help lift the struggling domestic manufactures.