Economy, Business And Markets

TEDPIX Snaps 11-Day Winning Streak

TEDPIX Snaps 11-Day Winning Streak
TEDPIX Snaps 11-Day Winning Streak

The Tehran Stock Exchange (TSE)’s overall index tumbled at Sunday’s close to snap 11 days of winning streak, and wipe out piled up gains to spur concern among both institutional and individual investors.

The oil price rebound has weighed on the giant petrochemical companies in Iran, with investors lining up to get rid of their shares.

Most of the listed firms at the equity market had a downbeat performance, and dragged down the benchmark. However only close to 26 percent of listed companies at the TSE settled in green.

The TSE data illustrated that the TEDPIX pulled back 420.9 points or 0.64 percent to stand at 65,366.3, and resume downtrend after 11 days of tiny uptrends. The first market index retreated 315 points or 0.65 percent to end at 48,167.3. The second market index shed 794.8 points or 0.61 percent to 128,461.2. The free float index plummeted 567.7 points or 0.75 percent to 74,666.8. The industry index dipped 318.4 points or 0.58 percent to settle at 54,756.2, and the blue chip index dropped 18.6 points or 0.63 percent to finish at 2,925.8.

Trade volume and value registered almost 6 and 40 percent decline respectively in comparison with the prior trading day, with more than 660 million shares changing hands, valued at 1.17 trillion rials.

Parsian Oil and Gas Development Company with more than 53 points negative contribution to the TEDPIX was the most crucial market laggard. Mapna Group and Persian Gulf Petrochemical Industry Company with close to 45 and 33 points took the second and third place respectively.

The TSE data also illustrate that market leaders at the equity market were accompanied by retreaters in their share values as Islamic Republic of Iran Shipping Lines, Saderat Bank, Iran Khodro – Iran leading car manufacturer - and Mellat Bank stood next to the leading losers.

TSE’s downtrend comes one day after head of the Securities and Exchange Organization, Mohammad Fetanatfard’s speech at a press conference, in which he referred to a number of practical changes in the making at the equity market in a bid to revive the dented sentiment at the TSE.

Panicked investors shrugged off the upbeat news to underscore the equity market’s fragile atmosphere as skittish mood, and overreactions are tied to perceived gloom hanging over the performance of companies at the TSE.

Lingering uncertainties namely the outcome of nuclear talks, next year’s proposed budget bill, and sagging global economy are leaving the most negative impacts on the stock market.

 Gov’t-Owned Firms Go Public  

Meanwhile, a ski resort plus 9 governmental companies are expected to go public this week via Iran Fara Bourse or over-the-counter (OTC), IRNA reported.

Close to 509 shares of Omran Techlar Construction Company, accounting for 33.93 percent of the company’s share, and priced at almost 2.51 billion rials; 100 percent of Industrial Renovation Company of Iran’s shares, with the base price of 2,032 rials per share, and more than 80 million shares of Kermanshah Petrochemical Industries Company, with the base price of 76,000 rials per share went public on Saturday via the OTC.

Niro Consulting Engineers Company, Aria-SGS Quality Services Company, Agricultural Implements Company, Qaemshahr Textile Company are among the companies that are expected to be transferred to the public hands next week.