Shares in Tehran Stock Exchange and the junior market Iran Fara Bourse took another drubbing Tuesday to extend a losing streak into the third day.
The main gauge of TSE, TEDPIX, dropped more than 14,500 points, or 2.7%, for the day and retreated to 519, 847.33. Smaller losses in the equal-weighted index (1.68%) indicate that the sell-off particularly hit large-cap companies.
Tuesday’s market featured a noticeable lack of buyers against a relentless sell-off of stocks of a broad range of listed companies amid a negative climate due to a variety of internal and external factors.
Out of a total of 313 active symbol tickers on Tuesday, 261 symbols finished the session in red, representing 83% of the total listed companies, according to analytical stock market website Donyaye Bourse.
The main market indicators in Tehran fell despite the fact that major world market staged solid rebounds on Tuesday after the previous day’s steep losses.
According to Reuters, oil and equity markets soared with signs of coordinated action by the world’s biggest economies to cushion the economic impact of the infectious coronavirus helping pull investors out of panic mode.
Observers attribute the lingering downturn in Tehran’s stocks to arbitrary decisions and meddling of the regulator in the market.
Anxious investors were apparently perturbed by the news that the regulator will further tighten the cap on price spread to 2% daily compared to the present 5%.
Although the decision was later suspended temporarily by Economy Minister Farhad Dejpasand, its side-effects continuing to undermine the market.
Market Performance
The TSE's main index TEDPIX lost 14,531.36 points or 2.72% on Tuesday to end trading at 519,847.3.
About 5.3 billion shares valued at 41.26 trillion rials ($269.73 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Noosh Mazandaran Company was the biggest winner as its shares went up 100% to 22,046 rials per share.
Tamin Petroleum and Petrochemical Investment Company incurred the biggest loss among all TSE-listed companies and went down 9.51% to 4,700 rials per share.
Persian Gulf Petrochemical Industries Company contributed the most to the benchmark's fall, followed by Tamin Petroleum and Petrochemical Investment Company, National Iranian Copper Industries Company and Mobarakeh Steel Company.
Parsian Bank gave the biggest boost to the benchmark index, followed by Mellat Bank, Noosh Mazandaran Company and Ofogh Koorosh Chain Stores Company.
The Price Index lost 3,844.89 points, or 2.70% to close at 138,598.1. First Market Index went down 8,171.84 points, or 2.17% to post 368,265.2.
The Second Market Index was down 39,657.33 points, or 3.48% to reach 1,100,648.4. Industry Index lost 14,344.66 points or 2.98% to register 466,400.3. The Free Float Index was down 16,756.77 points to hit 659,164.93.
TSE 30 went down 615.37 points to settle at 20,593.5 and the TSE 50 ended 595.44 points lower to finish at 18,982.9.
IFX Down 2.17%
Iran Fara Bourse main index IFX lost 149.55 points or 2.17% to close Tuesday trade at 6,744.22.
About 1.93 billion securities valued at 21.62 trillion rials ($141.34 million) were traded at the over-the-counter exchange.
Esfahan Steel Company had the highest number of traded shares as 328.73 million of its shares worth 856.08 billion rials ($5.59 million) were traded.
Gohar Zamin Iron Ore Company, Esfahan Steel Company, Middle East Mines and Mineral Industries Development Holding Company and Hormozgan Steel Company had the most negative impact on IFX.
Shahid Tondgooyan Petrochemical Company gave the biggest boost to IFX, followed by Day Bank, Chlor Pars Company and Saman Insurance Company.
