Tehran Stock Exchange's main index, TEDPIX, lost 125,758.90 points or 5.15% on Monday to end at 2,314,408.37. The TSE equal-weighted index fell 4.40%.
About 14.4 billion shares worth 115.24 trillion rials ($256.1 million) changed hands for the day. Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Melli Industrial Group Company led the winner’s list as its shares jumped 5% to 197,780 rials per share. Seamorgh Company was the big loser among all TSE-listed companies plunging 7% to 32,950 rials per share.
Mobarakeh Steel Company contributed the most to the benchmark's fall, followed by Persian Gulf Petrochemical Industries Company, National Iranian Copper Industries Company and Golgohar Mining and Industrial Company.
Pasargad Electronic Payment Company gave the biggest boost to the benchmark index, followed by Melli Industrial Group Company, Iran Khodro Axle Manufacturing Company and Pars Switch Company.
IFX Loses 4.36%
Iran Fara Bourse main index IFX lost 1,343.55 points or 4.36% to close Monday at 29,447.5.
About 10.15 billion securities worth 2,365.62 trillion rials ($5.25 billion) were traded at the over-the-counter exchange for the day.
Iran Khodro Diesel Company had the highest number of traded shares at 833.52 million worth 4.26 trillion rials ($9.47 million).
Shahroud Steel Company was in the lead in terms of growth among all IFB-listed companies climbing 4.99% to reach 6,455 rials per share.
The big loser was Chaharmahal Food Products and Sugar Company plunging 14.33% to reach 10,340 rials per share.
Marun Petrochemical Company, Arya Sasol Polymer Company, Gohar Zamin Iron Ore Company and Sepehr Saderat Financial Group Investment Company had the most negative impact on IFX.
Iran Khodro Diesel Company gave the biggest boost to IFX, followed by Shahroud Steel Company and Negin Software Systems Development Company.
The historical decline in share prices on Monday not only raised concerns of a possible shutdown of the exchange, but also fueled rumors that Majid Eshqi, head of the Iran Securities and Exchange Organization (SEO), will step down. However, Eshqi denied the rumors when asked about his job by a reporter at the National Smart Economy and Financial Development Conference.
“Nothing unusual has happened in the market… fluctuations are part and parcel of the market. No market is always bullish or bearish,” IRNA quoted him as saying.
Eshqi said the SEO had made no decision regarding the increase or decrease of the market. It is impossible to manage any market with directives and the stock market is no exception, he stated.
“The organization has not imposed and will not impose anything on market makers.”
He noted that supportive funds have enough resources and underpin the market aa and when needed. “The present agitation in the market is rather unusual.”
During the economic meeting, Eshqi discussed recent events in the capital market, stating that in meetings with government officials it was determined that the capital market is secure for attracting capital in the private and public sectors.
The government is keen on funding all projects, state or private, through the Tehran Stock Exchange and Iran Fara Bourse and has given “comprehensive support to the market”, he told the conferees.
According to Eshqi, the capital market authority is set to launch new initial public offerings (IPOs) in the coming days. He said that there has been an increase in IPO applications and expressed the hope the trend will continue.
Regarding the auto sector, the official noted that car carmakers can still offer their vehicles on the Iran Mercantile Exchange, and the process has not been halted. He emphasized the importance of preventing any potential market turmoil in the key automotive sector and stated that it is up to the carmakers to decide whether they want to sell via the IME or not.
