Tehran stocks again saw shareholders rushing for the exits at the close of trading session on Wednesday as investors’ hope about the market returning to the good old days faded.
The benchmark of Tehran Stock Exchange, TEDPIX, shed 52,902 points to drop 3.14% and close trade at 1,631,883 points, putting the TSE weekly loss at 5%.
The market witnessed a huge decline in the value of trade Wednesday as there were few buyers in the long line of sale orders.
Retail trade at TSE reached 62.4 trillion rials ($260 million), down 27% compared with Tuesday’s close, according to the Persian-language economic news website eghtesadnews.
Data showed capital outflow worth 26 trillion rials ($112m) mainly by retail traders while sale orders worth 130 trillion rials ($560m) remained unprocessed due to lack of buyers.
Following the stock market’s dramatic growth from the beginning of the fiscal year in March, the market turned bearish from August 10 and caused stocks of most listed companies to lose up to 60% of their value.
TEDPIX grew close to 270% during its heyday tempting an unusually large numbers of novice investors to rush to the market, albeit following regular announcements of support to the bourse by the government. The benchmark has now pared 25% of past gains.
In the meantime, the government has tried to prop up the market sporadically by requiring institutional buyers and investment funds to boost demand, but such efforts have proved to be a temporary penance and failed to persuade the deluge of novice investors, anxious to protect their assets from further decline, to leave the sell side.
Market data indicate that that institutional buyers have injected 150 trillion rials ($650 million) to boost the market.
TSE Trade
About 13.4 billion shares valued at 91.24 trillion rials ($396.7m) changed hands at TSE for the day.
Amin Investment Bank was the biggest winner as its shares went up 4.94% to 16,140 rials per share.
Barez Industrial Group Company (tire company) incurred the biggest loss among all TSE-listed companies and went down 6.46% to 21,580 rials per share.
Persian Gulf Petrochemical Industries Company contributed the most to the benchmark's fall, followed by Mobarakeh Steel Company, Social Security Investment Company and National Iranian Copper Industries Company.
Golgohar Mining and Industrial Company gave the biggest boost to the benchmark index, followed by Amin Investment Bank, Behsaz Kashaneh Tehran Company and Bafgh Mining Company.
The Price Index lost 13,876.74 points, or 3.14% to close at 428,057.62. First Market Index lost 40,959.75 points, or 3.30% to post 1,198,592.16. The Second Market Index went down 97,654.66 points, or 2.89% to reach 3,276,495.55.
The Industry Index was down 48,756.43 points or 3.29% to register 1,434,193.64. The Free Float Index was also down 69,550.0 points to hit 2,229,547.59.
TSE 30 went down 3,179.56 points to settle at 84,464.82 and the TSE 50 ended 2,334.93 points lower to finish at 63,939.93.
IFX Down 2.42%
Iran Fara Bourse main index IFX lost 431.19 points or 2.42% to close Wednesday trade at 17,357.42.
About 1.15 billion securities valued at 46.81 trillion rials ($203.55m) were traded at the junior equity exchange for the day.
Peyvand Gostar Pars Energy and Electric Company had the highest number of traded shares as 318.96 million of its shares worth 5.9 trillion rials ($25.65m) were traded.
Gohar Zamin Iron Ore Company, Marun Petrochemical Company, Arya Sasol Polymer Company and Middle East Mines and Mineral Industries Development Holding Company had the most negative impact on IFX.
Gilan Electric Power Development Company gave the biggest boost to IFX, followed by MahTaab Kahnouj Power Generation Company and Isfahan Parsian Kowsar Hotel.
