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By Trend

An Iranian stockbroker has forecasted that the formation of the country’s new administration would contribute to a better performance of the Tehran Stock Exchange (TSE).

Hossein Khezli Kharazi, CEO of Iran's Bank Keshavarzi Securities Company, told Trend that, TSE would experience a steady growth over the second half of the current Iranian calendar year (23 August-21 March), as a result of the formation of President Hassan Rouhani’s second government.

The CEO further added that, TSE listed petrochemical and steel companies have demonstrated a relatively good performance over the past weeks.

Elaborating on the surge of the petrochemicals stocks, he said that providing more transparency in the financial and accounting statements of the petrochemical companies have caused a surge in the petrochemical stocks.

He also cited the global hike in the prices of minerals and steel products as a reason behind the growth in shares of the steel companies.

Tehran-based investment company Turquoise Partners earlier suggested that TSE recorded its strongest gains over one week since mid-December 2016 with the All-Share Index advancing 1.7 percent to close at 81,509. Metal and mining companies were in demand for a second week as Base Metal (+11.4%) and Metallic Ore (+10.8%) became the top performing major sectors.

The inauguration ceremony of Hassan Rouhani is scheduled to take place on August 5, as Iranians re-elected him as President in the country’s Presidential election in May, 2017.

Following the swearing-in ceremony, the President will have two weeks to submit his new cabinet to the parliament for a vote of confidence.

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