Tehran stocks slumped on Monday under unrelenting panic selling in almost all shares as nervous investors’ struggled to sell fearing that a lingering sell-off may wipe off all previous gains.
The benchmark of Tehran Stock Exchange, TEDPIX, shed 49,409 points losing 3.14%, retreating back from its recent high to 1,523,997.
This was the TSE’s biggest daily loss in nearly nine months, according to data compiled by Eqtesad News website.
Observers say the share market was prone to a correction after consecutive rallies in the past two and a half months. The downturn was triggered by the decline in foreign exchange rates, which almost always impact the share market.
The downswing in big stocks extended to a broad range of small cap shares, dragging down the TSE’s equal weighted index by 2.81%. Small caps were among the top gainers in the past few weeks.
Selective stocks in refinery and telecom and ceramic categories were the few gainers of the day while all other share categories slumped.
Prices of 430 tickers dropped representing 88% of the total. Net capital outflow by retail investors reached 19.8 trillion ($76 million), the highest in eight months.
About 13.87 billion shares valued at 113.42 trillion rials ($405m) changed hands at TSE for the day. Bandar Abbas Oil Refining Company was the biggest winner as its shares went up 52.55% to 5,704 rials per share.
Persian Gulf Petrochemical Industries Company contributed the most to the benchmark's fall, followed by Mobarakeh Steel Company, National Iranian Copper Industries Company and Golgohar Mining and Industrial Company.
Bandar Abbas Oil Refining Company gave the biggest boost to the benchmark index followed by Middle East Mines and Mineral Industries Development Holding Company, Sepahan Oil Company and Barakat Pharmaceuticals Group Company.
IFX Down 1.26%
Iran Fara Bourse main index IFX lost 287.37 points or 1.26% to close Monday trade at 22,516.38.
About 4.68 billion shares and securities valued at 204.04 trillion rials ($728.7m) were traded at the junior exchange for the day.
Day Bank had the highest number of traded shares as 851.06 million of its shares worth 1.04 trillion rials ($3.7m) were traded.
Gohar Zamin Iron Ore Company, Arya Sasol Polymer Company, Zagros Petrochemical Company and Marun Petrochemical Company had the most negative impact on IFX.
Pasargad Insurance Company gave the biggest boost to IFX, followed by Minoo Industrial Group Company, Daroupakhsh Distribution Company and Iranian Reinsurance Company.
