It has been a few months since companies with the highest market cap have been failing at the Tehran Stock Exchange, dragging down the TEDPIX to notch new record lows, and inflicting heavy losses on both individual and institutional investors.
The precipitous fall in oil prices has affected various listed firms in the stock market, mainly the petrochemical sector, which is a substantial contributor to the TSE’s sentiment, with the affiliated companies having the most market cap.
The Persian Gulf Petrochemical Industry Company (PGPIC) has managed to surpass all listed companies at the TSE, with the highest market cap; followed by Mobile Telecommunication Company of Iran (MTCI) and Telecommunication Company (TCI).
Tamin Petroleum & Petrochemical Investment Company, and Parsian Oil and Gas Development Company (POGDC) have been ranked 6th and 7th in terms of the highest market cap.
The equity market’s dented sentiment has been severely hit by petrochemical companies amid the steep plunge in oil prices, which trimmed expectations about tangible earnings of investors’ formerly safe havens.
Fundamental companies at the TSE used to be a safe haven for investors, however, the gloom hanging over the prospect of the economy due to concerns over a possible budget deficit amid western sanctions on Iran over its nuclear energy program, have dramatically weighed on lagging indicators and accordingly the performance of giant listed firms.
Sunday Trading
The Pension Fund, which ranks 16th in terms of market cap, was the most crucial market laggard, with almost 30 points negative impact on the TEDPIX at Sunday’s close. The PGPIC, with a Price Earnings (P/E) of 5, came next with 27.68 points in negative contribution, followed by the POGDC with close to 18 points.
Sunday trading at the TSE was accompanied by further benchmark retreat, amid downbeat performance of market leaders, along with investors’ overreaction to the unofficial speculations on companies’ dividends reports to be published by the year’s end.
According to TSE data, the TEDPIX plummeted 90.8 points or 0.14 percent to settle at 63,860.1.
The first market index lost 44.5 points or 0.09 percent to 47,295. The second market index dropped 325.2 points or 0.26 percent to stand at 123,942.8. The free float index edged down 11.6 points or 0.02 percent to end at 72,825.6. The industry index tumbled 82.5 points or 0.15 percent to 53,469.5, and the blue-chip index declined 3.9 points or 0.14 percent to finish at 2,854.2.
TSE’s 6th consecutive losing day saw close to 40 percent of listed companies carve out brief gains, with Iran Khodro, with almost 14.47 points, leading the gainers following upbeat news about Iran’s foremost car manufacturer’s joint-venture with Peugeot. Saipa Group, another Iranian car manufacturer, and Iran Transfo Corporation took the second and third place respectively.
