Iranian equity market's boom here to stay
Tehran, Iran, Nov. 8
By Mehdi Sepahvand – Trend:
The current prosperity of the Tehran Stock Exchange (TSE) is going to continue, a world markets analyst says.
The profitable sectors of TSE are export companies, oil and chemical companies, and mineral companies, Ali Khoshnoud told Trend Nov. 8.
"The profitability of the first group is due to the fact that the price of the US dollar is on the rise against the Iranian rial. The profitability of the second group is due to the rising oil prices in the global market. And last but not least, the profitability of the third group is that the commodity prices are on the rise in the global market," the expert noted.
Khoshnoud said that all of the three groups are expected to enjoy steady profitability for some time to come.
"The first group’s profitability is obviously going to continue because the USD rate is going up. As for the second group, regional security disturbances as well as the fact that we are in the second half of the year contribute to demands. Also, Saudi Arabia is planning to sell 5 percent of Aramco next year, so it is trying not to oversupply. Therefore, chemical companies can be assured that oil prices are going to remain stable."
"As for the mineral sector, China’s Silk Road project contributes to prices. Also, although US President Donald Trump’s plan to rebuild the infrastructure of America has stayed idle, the lowering of taxes helps increase demand for commodity."
Asked whether the West’s political pressure on Iran influences the TSE, Khoshnoud said, "First of all we are used to this. We have been under such pressure for 40 years now. However, we have to consider the fact that when the financial statement of a company indicates profitability, the company’s value will increase. The example of this is that while in October everybody was expecting modification of indices, there came the 6-month report with the adjustment of most companies’ profitability, which was under the influence of the post-JCPOA boom. So, that prevented indices from going down."
Main index of the TSE inched up 39.4 points or 0.04 percent to end trades at 87883.1 on Nov. 7. According to the TSE official website, over one billion shares, valued at $46.5 million (1.6 trillion rials), were traded for the day.