With a feeling of uncertainty and nervousness cast over the future of stocks and disappointment with government pledges to buttress the market, Tehran shares fell again on Wednesday.
The main gauge of Tehran Stock Exchange, TEDPIX, lost 68,094 points and fell 3.7% to close trade at 1,757,257 points.
Wednesday’s plunge put TSE losses at 11% in five days starting from Saturday. Market data showed significant capital outflow on Wednesday by retail investors who sold shares worth 12.64 trillion rials ($55 million).
The last day of workweek also marked dramatic decline in value of trade, indicating that there were no buyers for long lists of sale orders. Value of retail trade reached 51 trillion rials ($223 million), way lower than the daily average in the past weeks, according to the Tehran Securities Exchange Technology Management Company.
With investors rushing for the exits and market cap of listed companies continuing to shrink, many are pointing the finger at the government because at several occasions it reassured investors that it would support the stock market and investors.
Observers opine that the government sold its shares in affiliated companies to retail investors during the heydays. Now, they claim, is the right time, from the government perspective, to go in the opposite direction and buy shares to boost demand!
The economy minster on Wednesday again tried (but apparently failed) to reassure investors that the government still backs the market.
TSE Trade
About 4.33 billion shares valued at 55.28 trillion rials ($245.72 million) changed hands at TSE for the day.
National Investment Company of Iran was the biggest winner as its shares went up 5% to 42,430 rials per share.
Persian Gulf Petrochemical Industries Company contributed the most to the benchmark's fall, followed by the Social Security Investment Company, Mobarakeh Steel Company and National Iranian Copper Industries Company.
National Investment Company of Iran gave the biggest boost to the benchmark index, followed by Bahman Group Company, Sabanour Mining and Industrial Development Company and Zar Macaron Industrial Group Company.
IFX Down 3.36%
Iran Fara Bourse main index, IFX, lost 652.17 points, or 3.36%, to close Wednesday trade at 18,777.76.
About 694.1 million securities valued at 25.65 trillion rials ($114m) were traded at the junior equity market for the day.
Gohar Zamin Iron Ore Company, Marun Petrochemical Company, Arya Sasol Polymer Company and Shahid Tondgooyan Petrochemical Company had the most negative impact on IFX.
Mapna Asaluyeh Power Generation Company gave the biggest boost to IFX, followed by Bahman Diesel Company, Chaharmahal Food Products and Sugar Company and Omid Taban Hour Energy Management Company.
