Business And Markets

Stocks Tank on Oil Price

Stocks Tank on Oil Price Stocks Tank on Oil Price

Stocks kept dramatically tumbling on budget worries and sinking oil prices, with the benchmark retreating more than 1 percent at Saturday’s close.

The ongoing meltdown in oil prices is expected to imperil most of the listed industries at the Tehran Stock Exchange (TSE).

The equity market is used to witnessing irregular behavior of unsettled investors; however, the current shaky sentiment at the stock market is mostly due to the limping economy.

According to TSE data, the overall index plunged 704.1 points or 1.05 percent to keep falling down. The first market index lost 514.1 points or 1.04 percent to settle at 49,104.3. The second market index nosedived 1,414.3 points or 1.09 percent to stand at 127,964.3. The free float index plummeted 988.5 points or 1.29 percent to end at 75,655.5. The industry index retreated 50.3.2 points or 0.9 percent to keep portraying gloomy atmosphere for the listed industries at the TSE. The blue chip index shed 36 points or 1.19 percent.

Uncertainty over the listed companies’ performance in the mid run, as well as the gloomy atmosphere of the economy dragged down both the volume and value of trade.

Almost 443 million shares changed hands, valued at close to 1 trillion rials, which clearly indicate that most of the investors prefer to hold their undervalued shares instead of selling them off at low costs.

The losing streak once again surrounded most of the listed companies at the TSE. According to TSE’s data, almost 85 listed firms failed to positively contribute to the TEDPIX.  

Leading petrochemical companies within the equity market are still bleeding with the Persian Gulf Petrochemical Industry Company topping the market laggards again with more than 84 points negative contribution to the benchmark. The Tamin Petroleum & Petrochemical Investment Company and MAPNA Group took the second and third place with almost 50 and 46 points negative contribution. However, Ghadir Investment Company with almost 75 points increment was the only noticeable positive contributor to the benchmark.

Ambiguities at the equity market have intensified, triggering selloffs even through getting rid of high-yielding shares. Right now, no one is able to forecast the benchmark trend in the upcoming days.

The extension of nuclear talks between Iran and the P5+1 (the five permanent members of the UN Security Council plus Germany) in November 24 triggered the TEDPIX free fall. Crude oil plunge and worries over a possible budget deficit for the upcoming year – which starts March 21 – have intensified the downbeat sentiment at the equity market.