Economy, Business And Markets

TEDPIX Shot Down After Refiners' Return

TEDPIX Shot Down After Refiners' Return
TEDPIX Shot Down After Refiners' Return

Refineries’ comeback at the Tehran Stock Exchange (TSE) dramatically weighed on the benchmark at Tuesday’s close, pushing the overall index to nosedive to a new record low.

After almost a year, the ticker symbol of six listed refining companies opened again, only to be accompanied by massive selloffs at the equity market.   

Unsettled shareholders of refining companies lined up to get rid the shares in a bid to cash their locked capital. The move heavily weighed on the equity market, with most of the listed firms settling in red.

According to TSE data, the TEDPIX plunged 3,589.9 points or 5.1 percent to stand at 61,532, and record the TSE’s most unprecedented drop ever.

The first market index shed 3,574.4 points or 7.43 percent to 44,508.2. The second market index fell 1,014.3 points or 0.8 percent to end at 126,353.7. The free float index nosedived 3,977.6 points or 5.33 percent to settle at 70,678.4. The industry index also dropped 3,427 points or 6.24 percent to finish a dramatic trading day at 50,593.9, and the blue-chip index 113.7 points or 3.89 percent to 2,812.8.

More than 1.36 billion shares changed hands, valued at almost 2.53 trillion rials. The surge in trade volume is due to the refining companies’ return, which is one of the most important sectors at the TSE.

Esfahan Oil Refining Company was the most crucial market laggard, with almost 1,447 points in negative contribution to the benchmark. Bandar Abbas Oil Refining Company, and Tabriz Oil Refining Company with 1,353 and 279 points in negative contribution, took the second and third place respectively.

Positive contributors to the overall index slightly helped the TEDPIX, however, dented sentiment weighed on all of them.

Almost 66 percent of listed companies at the TSE had a downbeat performance, which was due to the negative atmosphere at the equity market.

 Free Fall Ever

The equity market witnessed the return of six refining companies on Tuesday, which was accompanied by 42 to 66 percent decline in their shares’ value, and an unprecedented fall at the TSE.

After eight months, refining companies’ shareholders could cash their shares, however they had to suffer from heavy losses just in one day.

The return wrapped up one of the most crucial ambiguities at the equity market, though the move inflicted big losses on the investors.

According to Boursepress, the dismal performance of refining companies erased about $5 billion of the total market cap at the TSE, which is hard to be compensated.