Tehran stocks plummeted more than 3.3% at the start of trading week on Saturday amid investors unwillingness to trade and anxious about uncertainty about future market developments.
The market cap-weighted index of Tehran Stock Exchange, TEDPIX, dropped nearly 17,500 points retreating to 502,738 points for the day while the equal-weighted index experienced smaller losses and fell 1.8%.
TSE started a bearish trend since a week ago and has dropped more than 10% during the past five trading sessions, according to analytical stock market website Donyaye Bourse.
The sell-off hit shares of 248 companies listed with TSE, representing 80% of all active symbol tickers on Saturday.
Among other things, concerns over a gloom and doom scenario in light of the spreading coronavirus, steep volatility in major global markets and fears over a prolonged market correction, are seen as the main driving force pushing investors to sell.
Market observers link the downturn partly to consecutive stock market rallies in recent weeks, which has made share prices highly susceptible to a correction.
Sparked by the growing fears from the coronavirus outbreak, a correction phase is expected to stay longer as the Iranian fiscal year draws to a close (March 19) and some investors may withdraw part of their liquidity from the market.
Stock indictors in Tehran took a different path from that of major global stock exchanges on Friday after promising signs from central banks around the globe boosted investor sentiment.
A historic wave of selling in global stock markets eased on Friday as nervous investors looked to central banks and governments for support as the economic costs of the novel coronavirus outbreak continued to mount.
US stocks leaped higher after the worst day for Wall Street since Black Friday in 1987, with the S&P 500 gaining 5% at the open. European shares, having notched the worst day on record, raced higher, CNN reported.
Market Performance
The TSE's main index TEDPIX lost 17,498.81 points or 3.36% on Saturday to end trading at 502,712.2.
About 4.55 billion shares valued at 42 trillion rials ($281.91 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Fars Development Company was the biggest winner as its shares went up 9.06% to 6,848 rials per share.
Housing Investment Group Company incurred the biggest loss among all TSE-listed companies and went down 18.97% to 4,010 rials per share.
National Iranian Copper Industries Company contributed the most to the benchmark's fall, followed by Persian Gulf Petrochemical Industries Company, Mobarakeh Steel Company and MAPNA Group.
Iran Khodro Investment Development Company gave the biggest boost to the benchmark index, followed by Padideh Shimi Gharn Company, Salemin Company and Glucosan Company.
The Price Index lost 4,663.3 points, or 3.36% to close at 133,983.7. First Market Index went down 13,483.77 points, or 3.65% to post 356,337.2. Second Market Index was down 32,199.63 points, or 2.94% to reach 1,062,872.7.
The Industry Index lost 16,058.21 points or 3.45% to register 449,183.8. The Free Float Index was down 22,130.8 points to hit 641,899.41. TSE 30 went down 890.78 points to settle at 19,723.5 and the TSE 50 ended 752.38 points lower to finish at 18,157.7.
IFX Down 2.72%
Iran Fara Bourse main index, IFX, lost 183.78 points, or 2.72%, to close Saturday trade at 6,583.39.
About 1.24 billion securities valued at 16.31 trillion rials ($109.52 million) were traded at the over-the-counter exchange for the day.
Esfahan Steel Company had the highest number of traded shares as 92.78 million of its shares worth 241.44 billion rials ($1.62 million) were traded.
Iran Fara Bourse, Gohar Zamin Iron Ore Company, Zagros Peteochemical Company and Esfahan Steel Company had the most negative impact on IFX.
Shahid Tondgooyan Petrochemical Company gave the biggest boost to IFX, followed by Tukarail Company, Tabas Parvardeh Coal Company and Pakdis Company.
