Tehran stocks dived deeper on Monday extending a losing streak into the fifth session amid relentless sell-off of shares by investors in panic.
Losing 51,989 points, or 3.43%, the benchmark of Tehran Stock Exchange, TEDPIX, plunged to four-month low closing the session at 1,462,283 points, the lowest since June 24.
Blue chips were hit harder as seen in the 4.5% fall in the TSE 30 Index, which tracks the performance of 30 companies with the highest market capitalization at the TSE.
Observers link the declining trend of the bourse to rumors about a decision by the Central Bank of Iran to raise interest rates. The news was neither confirmed nor denied by CBI officials but has apparently affected investor sentiment, IRNA reported citing a market expert.
There is also growing criticism leveled against the main shareholders and institutional traders over their attempt to undermine the market by heavy offloading of shares.
Reacting to the mounting criticism, Ali Sahraee, the CEO of TSE told IRIB news on Monday that the “capital market authorities are seeking legal ways to limit the large-scale offers by institutional traders”.
TSE Trade
About 2.01 billion shares valued at 33.47 trillion rials ($107.98 million) changed hands at TSE for the day.
Mobarakeh Steel Company contributed the most to the benchmark's fall, followed by Persian Gulf Petrochemical Industries Company, National Iranian Copper Industries Company and Tamin Petroleum and Petrochemical Investment Company.
Iran Refractories Company gave the biggest boost to the benchmark index followed by Radiator Iran Manufacturing Company, Hafez Tile and Ceramic Company and Bafgh Mines Company.
IFX Down 2.52%
Iran Fara Bourse main index IFX lost 446.31 points or 2.52% to close Monday trade at 17,274.77.
About 972.23 million securities valued at 29 trillion rials ($93.57m) were traded at the junior equity exchange for the day.
Middle East Mines and Mineral Industries Development Holding Company, Arya Sasol Polymer Company, Marun Petrochemical Company and Sepehr Saderat Financial Group Investment Company had the most negative impact on IFX.
Kowsar Insurance Company gave the biggest boost to IFX, followed by Tejaratno Insurance Company, Atieh Dadeh Pardaz Company and Tabas Parvardeh Coal Company.
