Tehran stocks were hit by selloff at the close of trading week on Wednesday as the currency market climate tilted toward more uncertainty and investor sentiment sagged, especially regarding the profit prospects of export-based companies.
The main gauge of Tehran Stocks Exchange, TEDPIX, lost 15,024.88 points, or 0.78%, on Wednesday to end trading at 1,901,169.35, extending a losing streak into the second day.
The decline was partly attributed to the TSE benchmark approaching 2 million points as a psychological resistance ahead.
However, it appears that trends in the currency market is playing a bigger role as majority of listed companies are export-oriented and currency rates affect their earnings.
Citing market analysts, the Persian-language economic newspaper Donya-e-Eqtesad said almost 70% of listed companies are directly affected by fluctuations in currency rates.
TSE Trade
About 6.8 billion shares valued at 158.36 trillion rials ($772.54 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Mobarakeh Steel Company contributed the most to the benchmark's fall, followed by Persian Gulf Petrochemical Industries Company, Tamin Petroleum and Petrochemical Investment Company and Parsian Oil and Gas Development Company.
Social Security Investment Company gave the biggest boost to the benchmark index, followed by Esfahan Oil Refining Company, Bandar Abbas Oil Refining Company and Islamic Republic of Iran Shipping Lines Company.
IFX Down 0.13%
Iran Fara Bourse main index IFX lost 24.77 points, or 0.13%, to close Wednesday trade at 19,518.75. About 2.4 billion securities valued at 54.16 trillion rials ($264.21m) were traded at the over-the-counter exchange for the day.
Esfahan Steel Company had the highest number of traded shares as 390.65 million of its shares worth 3.8 trillion rials ($18.55m) were traded.
Hormozgan Steel Company, Zagros Petrochemical Company, Jahrom Power Plant Development Company and Mehr Ayandegan Financial Development Group Company had the most negative impact on IFX.
Gohar Zamin Iron Ore Company gave the biggest boost to IFX, followed by Saba Tamin Investment Company, Shahid Tondgooyan Petrochemical Company and Esfahan Steel Company.
