Tehran Stock Exchange experienced one of its biggest downturn in nearly two months on Tuesday, with its main index, TEDPIX, losing more than 26,318 points, or 2.5%, to retreat back to 1,021,444.
Excitement and herding behavior were evident in Tuesday’s session as investors, mostly newcomers and unprofessional, kept moving to and fro during trading hours.
The market opened in positive territory with sell-off starting to hit small cap stocks in the early hours before being extended to large-caps later.
With trade drawing to a close, demand popped up again for shares of a number of big listed companies, or the so-called “benchmark markers”, causing the TEDPIX to gain some composure and escape further loss.
This pushed the value of trade by retail investors toward a new record. Retailers handled shares worth 240 trillion rials ($1.4 billion) in both TSE and Iran Fara Bourse (the junior equity market) on Tuesday, up over the daily average of 800 trillion rials in the past month and way higher than 30 trillion rials on daily basis six months ago.
While inflow of fresh liquidity was the main driver of consecutive market rallies in the past weeks, market data shows investors have started moving liquidity out of the market.
Donyaye Bourse reported that approximately 4.78 trillion rials ($29 million) was taken on Tuesday, apparently due to the fact that investors were unnerved about further market decline and the prospect of a prolonged correction phase in the coming days after weeks of non-stop rallies.
Recalling that the TSE benchmark recently climbed above psychological level of 1,000,000 points, many market analysts say the market many need a correction.
Market Performance
About 22.56 billion shares valued at 196.99 trillion rials ($1.18 billion) changed hands at TSE for the day.
Iran Tractor Manufacturing Forging Company was the biggest winner as its shares went up 5% to 23,422 rials per share.
Tuka Transportation Company incurred the biggest loss among all TSE-listed companies and went down 23.01% to 20,759 rials per share.
Persian Gulf Petrochemical Industries Company contributed the most to the benchmark's fall, followed by Parsian Oil and Gas Development Group Company, National Iranian Copper Industries Company and Mellat Bank.
Telecommunication Company of Iran gave the biggest boost to the benchmark index, followed by Social Security Investment Company, Esfahan Oil Refining Company and SAIPA Automaker Company.
The Price Index lost 6,999.20 points, or 2.51% to close at 271,642.31. First Market Index went down 14,323.16 points, or 1.84% to post 765,041.12.
Second Market Index was down 73,671.16 points, or 3.57% to reach 1,991,682.3.
The Industry Index lost 23,272.03 points or 2.56% to register 887,107.47. The Free Float Index was down 30,514.16 points to hit 1,306,419.03.
TSE 30 went down 1,102.38 points to settle at 44,467.61 and the TSE 50 ended 1,067.79 points lower to finish at 38,895.88.
IFX Down 2.36%
Iran Fara Bourse main index IFX lost 274.23 points, or 2.36%, to close Tuesday trade at 11,332.72.
About 5.14 billion securities valued at 60.4 trillion rials ($361.69 million) were traded at the over-the-counter exchange for the day.
Esfahan Steel Company had the highest number of traded shares and trade value as 1.05 billion of its shares worth 6.2 trillion rials ($37.16 million) were traded.
Middle East Mines and Mineral Industries Development Holding Company, Saba Tamin Investment Company, Zagros Petrochemical Company and Shahid Tondgooyan Petrochemical Company had the most negative impact on IFX.
Gohar Zamin Iron Ore Company gave the biggest boost to IFX, followed by Marun Petrochemical Company and Pasargad Insurance Company.
