Share prices in Tehran took a new drubbing Monday as the bruising sell-off continued extending the long streak of losses in five sessions in a row.
The main index of Tehran Stock Exchange, TEDPIX, lost more than 3% and shed 36,486 points to close at 1,150,224, the lowest since June 10. The equal-weighted index, which gives the same weight to all stocks, was down 1.71% for the day.
Stocks of 424 listed companies, which represent 90% of the market, experienced price declines. The bourse has seen net capital outflow by retail traders for five consecutive sessions reaching 14.16 trillion rials ($60 million).
The prolonged downturn has drawn the ire of millions of retail investors who in the recent past were encouraged by the government to put their money in the stock market, which made solid gains in the first five months of current fiscal year when the main index of Tehran Stock Exchange jumped more than 300%.
The gains in tandem with frequent government reassurance about "safety of investment in stocks" convinced the people to invest their hard-earned savings, spurred also by fears that the value of their rial assets was depreciating due to high and rising inflation.
The number of shareholders multiplied in the less than six months to exceed more than 20 million, many of them invested money when most share prices reached an apex and price bubbles were about the burst.
After crossing 2 million points, TEDPIX reversed course and started to plunge at an unprecedented speed, now almost 50% lower than the historic high.
TSE Trade
About 4.15 billion shares valued at 41.54 trillion rials ($188.85 million) changed hands at TSE for the day. Zar Macaron Industrial Group Company incurred the biggest loss among all TSE-listed companies and went down 12.99% to 22,770 rials per share.
Mobarakeh Steel Company contributed the most to the benchmark's fall, followed by National Iranian Copper Industries Company, Persian Gulf Petrochemical Industries Company and Social Security Investment Company.
Kharazmi Investment Company gave the biggest boost to the benchmark index followed by Darou Pakhsh Pharmaceutical Company, Saman Kish Electronic Payment Company and Orumieh Cement Company.
IFX Down 2.37%
Iran Fara Bourse main index, IFX, lost 422.39 points or 2.37% to close Monday trade at 17,436.67. About 936.85 million shares valued at 94.22 trillion rials ($428.3m) were traded at the junior exchange for the day.
Gohar Zamin Iron Ore Company, Arya Sasol Polymer Company, Zagros Petrochemical Company and Hormozgan Steel Company had the most negative impact on IFX.
Sepehr Saderat Financial Group Investment Company gave the biggest boost to IFX followed by Pegah East Azerbaijan Dairy Company, Daroupakhsh Distribution Company and Mahan Chicken Production Complex.
