Iran's stock market logged one the biggest downturns in the past several sessions on Wednesday as relentless sell-off continued to pummel share prices.
The Tehran Stock Exchange extended the previous session's loss with its main gauge, TEDPIX, plunging 2.93% on the last day of trading week.
TEDPIX retreated to 1,310,708 points shedding 39,524 points, marking the biggest daily loss in 17 sessions. The equal-weighted index was down 1% indicating that small caps were not hit by sell-off as much as its large cap peers.
The widespread sell-off was sparked by a controversial decision by the industries minister on Tuesday to intervene in steel prices offered at Iran Mercantile Exchange.
Large-scale sell-off followed after Alireza Razm-Hosseini said the ministry wants steel products to be sold at the Iran Mercantile Exchange 30% lower than prices in international markets -- a move expected to hurt earnings of listed steel companies.
About 9.51 billion shares valued at 109.51 trillion rials ($421.21 million) changed hands at TSE for the day. Persian Gulf Petrochemical Industries Company contributed the most to the benchmark's fall, followed by National Iranian Copper Industries Company, Mobarakeh Steel Company and Social Security Investment Company.
Sepid Farab Kavir Steel manufacturing company gave the biggest boost to the benchmark index followed by Behran Oil Company, Iran Tractor Forging Company and Sepahan Oil Company.
IFX Down 1.61%
Iran Fara Bourse main index, IFX, lost 312.68 points or 1.61% to close Wednesday trade at 19,076.13. About 3 billion securities valued at 254.9 trillion rials ($980.6m) were traded at the junior exchange for the day.
Gohar Zamin Iron Ore Company, Middle East Mines and Mineral Industries Development Holding Company, Hormozgan Steel Company and Saba Tamin Investment Company had the most negative impact on IFX.
Minoo Industrial Group Company gave the biggest boost to IFX, followed by Mapna Asaluyeh Power Generation Company, Bahman Diesel Company and Daroupakhsh (a medicine distribution company).
