Stocks at the Tehran Stock Exchange (TSE) tumbled on short-term approaches of individual and institutional investors, and lingering uncertainties surrounding the preliminary nuclear deal between Iran and the P5+1, with all indices recoding massive retreats at Sunday close.
The upcoming Initial Public Offerings (IPOs), profit-taking pressure combined with speculators' approaches heavily weighed on the benchmark, pushing the TEDPIX to register its gloomiest day since the beginning of the new Iranian year, which started March 21.
The overall atmosphere of the equity market does not point to gloom and doom lying immediately ahead, however lack of stability in policy making, the investors' irregular behaviors, market jitters and massive selloffs by part of institutional investors within the past few days have triggered downbeat performance on the part of the benchmark.
Head of the Securities and Exchange Organization Mohammad Fetanatfard recently announced that new IPOs are underway in a bid to regulate the equity market's liquidity, though the statement has been criticized over its negative impact on massive selloffs within the past two days.
Some market analysts believe that the recent statement about the IPOs, while the equity market is still grappling with uncertainties weighing on investors' sentiment, encouraged them to selloff and prepare their portfolios for the upcoming IPOs.
TSE data revealed that stocks suffered a severe bout of selling, which dragged down the TSE's gauge to fall 1,238.9 points or 1.77 percent to spur concern among investors. TSE's rout pushed the TEDPIX to lose ground and settle at 68,783.9. The first market index lost 966.7 points or 1.87 percent to 50,639.2. The second market index shed 2,086.6 points or 1.52 percent to 135,495.4. The free float index dropped 1,711 points or 2.1 percent, to lead underperformers. The industry index stumbled 890.6 points or 1.56 percent to stand at 56,070.3, and the blue-chip index 76.5 points or 2.31 percent to dip into 3,231.4.
Unlike Saturday, the banking sector was accompanied by lineups with the aim of getting rid of their shares on Sunday trading, with Bank Saderat topping the highest volume of trade, though it nearly ended its market cap volatility with 3.93 percent decrease in its shares value. Tejarat Bank and Mellat Bank also with 18 and 89 percent in negative contribution to the TEDPIX stood after Saderat Bank.
Saderat Bank also had the highest trade value. Tejarat Bank took the second place, and Bandar Abbas Oil Refining Company, which recorded the most positive contribution to the benchmark, underperformed and took the third place in terms of trade value.
Around 87 percent of listed firms at the TSE underperformed. However a few companies with high market caps managed to lift the benchmark.
Tamin Petroleum & Petrochemical Investment Company with 94.22 points left the most negative impact on the TEDPIX. Bank Mellat and Ghadir Investment Company with almost 89 and 86 points took the second and third place respectively.
> IFX in Red Territory
More than 196 million shares changed hands at Iran Farabourse or over-the-counter, valued at around $32.29 million, though its benchmark settled in red territory, with IFX slipping 13.49 points or 1.77 percent to 750.4, Iran Farabourse public relations reported.
The highest trade volume was recorded for Hormozgan Steel Company, though the lowest trade volume was registered for Tehran Oil Refining Company.
Mortgage-backed securities witnessed a downtrend in value, and their price swang between 720,000 to 780,000 rials.
