Iranian stocks fell again on Tuesday as concerns about the rout in global markets and weak oil prices heightened investor fears on a day that President Hassan Rouhani submitted next year's budget to the parliament.
A raft of downbeat earnings for commodity companies sparked the decline, sending the Tehran Stock Exchange's main gauge down 533 points. However bank stocks continue to be a darling for investors as revaluation of lenders' assets has prompted some excitement about their state. Bank Mellat and Tejarat Bank in particular boosted the index.
On Monday afternoon Brent crude was down 4.42% at $51.71, and WTI Crude was trading down 4.41 % at $43.58, as concerns about slowing economic and oil demand growth persist.
And world stocks were set for their seventh straight day of losses on Monday, as investors nervy about the possibility of a prolonged US government shutdown and a worsening global economy opted for the safety of bonds and gold.
How Indexes Performed
The TSE's main index TEDPIX lost 533.67 points or 0.34% on Tuesday to end Tuesday trading at 156,950.3.
About 2 .12 billion shares valued at 6.45 trillion rials ($57 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Asia Insurance was the biggest winner as its shares went up 5.9% to 1,762 rials.
Butane Industrial Group (largest manufacturer of wall-hung, gas water heaters in Iran) incurred the biggest loss among all TSE-listed companies and went down 4.89% to 8,428 rials per share.
Mobarakeh Steel Company contributed the most to the benchmark's fall, followed by National Iranian Copper Industries Company and Isfahan Oil Refining Company.
Bank Mellat gave the biggest boost to the benchmark index, followed by Persian Gulf Petrochemical Industries Company and Tejarat Bank.
The Price Index lost 155.11 points to close at 45,624.7.
The First Market Index was down 546.47 points to post 115, 372.5. Second Market Index decreased by 318.56 points to reach 313,372.5.
The Industry Index went down by 901.28 points to register 140,791.7. Free Float Index was down 497.21 points to hit 1170,130.63.
TSE 30 went down 53.76 points to settle at 7,668.1 and the TSE 50 ended 34.22 points lower to finish at 6,757.0.
Iran Fara Bourse’s main index IFX lost 6.19 points or 0.34% to close Tuesday trade at 1,820.48
About 535 million shares and securities valued at $38.44 million were traded at the over-the-counter exchange for the day.
Meanwhile a capital market analyst believes that forex rate fluctuations in recent months have left their delayed effects on the capital market.
Behrooz Khodarahmi, Headof Sepehr Saderat Financial Group, says companies which took influence from forex rate fluctuation fall into two categories. First, there are export oriented industries active in the capital market which are directly affected by forex fluctuation. This group, according to him, recorded better performances in the market as their rial earnings increased and this led them to win favor earlier that other companies.
The Second group of companies which benefited indirectly from forex rate fluctuation includes those entities which are mainly active in the domestic arena.
According to Khodarhmi, they are not involved in any international trade and don’t produce any earning from export and their good performance is mainly due to their good asset base.
