The benchmark of Tehran stocks shed 8,000 points on Wednesday, bringing down TEDPIX more than 2.6% lower amid a massive selloff of stocks.
Following a series of consecutive rallies since the beginning of the calendar month on August 23, which pushed up TEDPIX above the psychological level of 300,000 points, stocks fell into a bearish trend on Tuesday spurred by investors’ push to save earlier profits.
With the bearish trend gaining momentum on Wednesday, the benchmark retreated from the historic peak conquered in the beginning of the trading week on Saturday, to end trading week at 294,166 points.
As seen in the previous session, commodity stocks were the main driving force behind the benchmark’s fall with the giant steel maker Mobarakeh Steel Company and major refiners taking the lead.
This was the biggest downturn since May, according to the Donyaye Bourse website.
The stock market analytical website said after non-stop rallies, the market has become prone to a correction and recent regional political developments were mostly the trigger.
Although domestic market performance at times has been averse to external developments, there are market analysts who ascribe the recent bear market to downward trends in global markets plus the prospects for further political tensions in the troubled region. The drone attacks on oil production facilities in Saudi Arabia over the weekend are seen as a vivid example of the coming storms.
The attacks fueled worries over the impact of an oil shock on global economic growth, according to Reuters.
Regional and global stocks plunged after the drone attack before they rose slightly on Wednesday as crude oil supply worries faded.
Market Performance
The TSE's main index TEDPIX lost 7,915.42 points or 2.62% on Wednesday to end trading at 294,166.7.
About 5.34 billion shares valued at 18.09 trillion rials ($158.69 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Pars Minoo Industrial Company (active in food industry) was the biggest winner as its shares went up 5% to 13,660 rials per share.
Iran Khodro Axis Makers Company incurred the biggest loss among all TSE-listed companies and went down 5.79% to 5,366 rials per share.
Mobarakeh Steel Company contributed the most to the benchmark's fall, followed by Tehran Oil Refining Company, Esfahan Oil Refining Company, Telecommunication Company of Iran and Tamin Petroleum and Petrochemical Investment Company.
Karafarin Bank gave the biggest boost to the benchmark index, followed by Tehran Cement Company, Pars Switch Company (manufacturer of medium and high voltage circuit breakers), and Pars Minoo Industrial Company.
The Price Index lost 2,127.39 points, or 2.62% to close at 79,063.7.
The First Market Index was down 5,801.03 points, or 2.64% to post 214,225.0. Second Market Index was down 15,876.41 points, or 2.59% to reach 596,269.6.
The Industry Index went down by 7,237.62 points or 2.67% to register 263,398.4. The Free Float Index was down 8,892.79 points to hit 337,845.23.
TSE 30 went down 320.51 points to settle at 12,559.9 and the TSE 50 ended 311.72 points lower to finish at 11,459.4.
IFX Down 2.59%
Iran Fara Bourse main index IFX lost 103.52 points or 2.59% to close Wednesday trade at 3,886.55.
About 1.07 billion securities valued at 9 trillion rials ($78.95 million) were traded at the over-the-counter exchange for the day.
Esfahan Steel Company had the highest number of traded shares as 271.83 million of its shares worth 517.9 billion rials ($4.54 million) were traded.
Marun Petrochemical Complex, Goharzamin Iron Ore Company and Esfahan Steel Company had the most negative impact on IFX.
Ghasem Iran Company (a distribution firm) gave the biggest boost to IFX, followed by Zagros Power Generation Company, General Mechanic Company and Pasargad Insurance Company.
