TSE slightly higher after crude price surge

File photo of Tehran Stock Exchange.

Iran’s main share index has ended slightly higher following oil prices surge in the global markets.

The Tehran Stock Exchange Index (TEDPIX) increased by 76 units to close at 65.105 points on Sunday, the second working day this week.

338 million shares worth 650 billion rials (2.3 million USD) were traded at the Tehran stock market.

The gains came after oil prices surged on Friday, following the death of Saudi Arabia’s King Abdullah.

Brent oil jumped $1.18 to $49.70 a barrel, a 2.4% gain with the US benchmark for March delivery rising $1.02 to $47.33 a barrel.

Oil impact

Sliding oil prices have negatively affected stock markets in Iran and other oil exporting countries. The stock market in Iran has witnessed a lengthy fall in the index for the past several months. The Tehran Stock Exchange Index lost 20 percent in 2014 as petrochemical companies plunged. Total equity trading volume of the Exchange shrank about 4 percent in 2014 and tumbled to 166 billion shares, from 174 billion shares in 2013.

 

Boost in foreign investment

The recent gains in the Tehran Stock Exchange come against the backdrop of a surge in foreign investment in Iran’s capital market. Hamed Soltaninejad, the CEO of the Central Securities Depository Company of Iran (CSDI) on Saturday announced that at least 27 new foreign investors have received authorization to trade in the TSE. within the past two months. Most of the investors are from Germany, Britain, Syria, and China, said the Iranian official, adding that a total of 97 investors from different Asian, European and African countries have received TSE trade licenses since March 2014.

Emerging market

The outlook for the market remains bright with growing expectations for a comprehensive nuclear deal between Iran and the P 5+1 group (including the US, UK, France, Russia, China and Germany). The two sides have until July 1 to reach an agreement. Any possible deal, which will ultimately lift international sanctions against Iran, is expected to give considerable impetus to the country’s capital market, and turn it into one of the hottest investment opportunities.

By Press TV

 

The Iran Project is not responsible for the content of quoted articles.