Iran’s equity market soars, thanks to commodity prices
Baku, Azerbaijan, July 25
By Farhad Daneshvar – Trend:
The traders at the Tehran Stock Exchange (TSE) have witnessed a considerable growth in the main index over the past weeks amid the recent surge in the global prices of mining and steel products, a financial analyst told Trend.
Alireza Kadivar, a financial analyst and deputy head of Iran’s Novin Investment Bank, has said that the growing prices of copper, steel and iron ore in the global markets have contributed to the improving performance of the TSE.
While the main index of the TSE gained 247.8 points or 0.31 percent to end trade at 81181.7 on July 25, the main index over the past week has surged by 1313.1 points or 1.65 percent.
Steel stocks are trading at the highest since 2011 in the world as a result of the recent policies adopted by China, Kadivar added.
About 50 percent of the market cap at the TSE goes to the commodities-driven companies, therefore the surge in the global prices of the commodities have a significant impact on the Iran’s largest equity market.
While the base metal jumped 2.21 percent to $6,167 a ton on Tuesday, copper prices touched a five-month high on the same day amid signs of stronger Chinese demand and lingering supply-side concerns.