Tehran stocks fell on Monday amid the pressure of a massive sell-off that initially swept bank stocks but later extended to equities of a wide range of listed companies.
After delivering a flat performance a day earlier, the benchmark of Tehran Stock Exchange lost more than 4,200 points on Monday to close trading session 1.4% lower.
The steep fall in the price of bank equities was the main driving force behind the benchmark fall as investors lost sentiments following the unofficial news that Central Bank of Iran may set limitations on procedures involved in boosting capital of banks.
The news was corroborated as the CBI deputy for supervisory affairs, Farhad Hanifi, on Monday announced limitations in asset revaluation methods through which banks can boost capital.
The fall in bank stocks soon extended to almost all other stocks in the market thanks to the emotional behavior of jittery and novice investors.
Market Performance
The TSE's main index TEDPIX lost 4,284.41 points, or 1.39%, on Monday to end trading at 304,676.5.
About 2.999 billion shares valued at 13.22 trillion rials ($116.98 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Iran Construction Investment Company was the biggest winner as its shares went up 10.91% to 13,221 rials per share.
Kalber Dairy Company incurred the biggest loss among all TSE-listed companies and went down 5% to 10,441 rials per share.
Bank Mellat contributed the most to the benchmark's fall, followed by Tehran Oil Refining Company, Tamin Petroleum and Petrochemical Investment Company and Bandar Abbas Oil Refining Company.
Iran Construction Investment Company gave the biggest boost to the benchmark index, followed by Alborz Investment Company, Sepid Farab Kavir Steel Manufacturing Company and Barakat Pharmaceutical Company.
IFX Down 0.79%
Iran Fara Bourse main index IFX lost 30.81 points, or 0.79%, to close Monday trade at 3,883.78.
About 1.04 billion securities valued at 6.07 trillion rials ($53.72 million) were traded at the over-the-counter exchange for the day.
Esfahan Steel Company, MAPNA Asaluyeh Power Generation Company, Middle East Mines & Mineral Industries Development Holding Company and Iran Office Machines Industries had the most negative impact on IFX.
Kowsar Insurance Company gave the biggest boost to IFX, followed by Ghasem Iran Company (active in distribution industry), Pars Paper Industries Group Company and Alborz Distribution Company.
