News ID: 204095
Published: 0454 GMT November 10, 2017

Expert: TSE prosperity will continue

Expert: TSE prosperity will continue

Current prosperity of Tehran Stock Exchange (TSE) will continue, said a global market analyst.

The profitable sectors of TSE are export companies, oil and chemical companies, and mineral companies, Ali Khoshnoud told Trend News Agency.

"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 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 five 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 has an impact on 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 six-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."

Resource: Trend News Agency
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