The Tehran stock market has moved lower on consecutive trading days, as low oil prices continue to batter investment sentiment.
Tehran Stock Exchanges' main index TEDPIX has retreated 6% since the beginning of the current fiscal year on March 21. On Monday, TEDPIX was down 4,789 points or 2.80% and now rests at 166,463.5 point.
The fall in oil refinery and commodity stocks has impacted the whole market, causing another wave of selloff on Monday. Even auto and bank stocks, which on Saturday had gone against the market trend and made gains, reeled under the pressure on Monday.
Oil prices rose on Monday, recovering some of the previous session's sharp declines, although uncertainty over global economic growth limited the gains.
Brent crude futures were last up $1.40, or 2.4%, to reach $60.20 a barrel after sliding 6% on Friday.
A rising dollar, which undercut demand in key emerging market economies, higher borrowing costs and the threat to global growth from the escalating trade dispute between the United States and China, has pushed investors out of assets that are more closely aligned with the global economy, such as equities or oil.
Goldman Sachs, however, said on Monday commodities could surge around 17 % over the coming months, with a fast-approaching G-20 meeting cited as a potential launchpad for raw materials.
So far this month, oil prices have collapsed on intensifying oversupply concerns, metals have fallen amid worries over slowing economic growth and investors continue to fret about the ongoing trade war between the world's two largest economies.
A dramatic selloff in commodities comes at a time when traders are closely monitoring a flurry of market drivers.
A capital market expert told IRNA that the recent down-market is more of a correction and would not last. Mohammad Reza Aram Bonyar added that since the market had made big gains thanks to fall in the value of rial, a correction now seems inevitable.
The depreciation of rial by about 70% in the past six months had caused the market to grow exponentially, as investors expected big rises in export companies' earnings. But a more stable foreign exchange market and the effects of US sanctions have dampened those hopes.
Market Indexes
Tehran Stock Exchange’s main index lost 4,789.44 points or 2.80% on Monday to end trading at 166,463.5.
About 1.4 billion shares valued at 7.7 trillion rials ($62.84 million) changed hands at TSE for the day.
Trading at TSE and Iran Fara Bourse starts on Saturday and ends on Wednesday.
The industrial group Dasht-e- Morghab was the biggest winner as its shares went up 15.38% to 10,459 rials per share. Established in 1967, 1&1 is among the oldest and leading food companies of Iran.
Pars Melli Ag Indust And Livestock Company incurred the biggest loss among all TSE-listed companies and went down 5% to 8,325 rials per share.
Persian Gulf Petrochemical Industries Company contributed the most to the benchmark's fall, followed by Golgohar Mining and Industrial Complex and Pars Petrochemical Company.
Mobile Telecommunications Company of Iran (MCI)—also known under its brand name Hamrah-e-Aval—gave the biggest boost to the benchmark index, followed by Behshahr Industrial Development Corp and DADEH GOSTAR e ASR e NOVIN (DGA Novin), which is also known by its brand name HiWEB.
The Price Index lost 1394.70 points to close at 48,477.8.60.
The First Market Index was down 3,759.75 points to post 122,820.3
The Second Market Index decreased by 8,417.71 points to reach 330,709.17.3
The Industry Index went down by 4,344.14 points to register 150,939.9
The Free Float Index was down 4,956.88 points to hit 178,149.94
The TSE 30 went down 254.16 point to settle at 8,265.1 and the TSE 50 ended 226.80 points lower to finish at 7,265.80
IFX Down 2.27%
Iran Fara Bourse’s main index IFX lost 63.91 points or 3.43% to close Saturday trade at 1,800.68
About 755.13 million securities valued at $38.33 million were traded at the over-the-counter exchange for the day.
Goharzamin Iron Ore Company had the highest number of traded shares and trade value, as 139.718 million shares worth $14.39 million changed hands.
Goharzamin Iron Ore Company, Iran Office Machines Center (Maadiran) and Etemad Afarin Personal Fund registered the highest value increase.
Zagros Petrochemical Company, Lavan Oil Refining Company and Iranol Oil Company suffered the biggest decline.
Marun Petrochemical Company, Zagros Petrochemical Company and Middle East Mines Industries Development Holding Company had the most negative impact on IFX.
