Economy, Business And Markets

Stock Market Poised to Extend Losing Streak

Stock Market Poised to Extend Losing StreakStock Market Poised to Extend Losing Streak

Lack of faith in the landscape of the economy in the short run, and the uncertainties hovering over the issue of western sanctions are draining the equity market with the TEDPIX settling in red.

According to TSE data, the overall index tumbled 331.7 points or 0.5 percent to extend its losing streak and end at 66,208.9. The first market index was down 211 points or 0.43 percent to 48,589.

The second market index shed 827.4 points or 0.66 percent to 131,400.6. The free float index slipped 422.2 points or 0.55 percent to 76,913.5. The industry index eked 246.4 points or 0.45 percent at 54,114.9, and the blue-chip index also slumped 21.7 points or 0.7 percent to 3,070.9.

It has been a while since the wobbly economy is weighing on the unsettled investors’ sentiment, with most individual and institutional investors preferring to sell off risk at the first hint of trouble, and garnering shares as long as they are on hot streak, which has recently dampened trade volume and value drastically.

TSE recorded more than 384 million shares changing hands in a downward trading day on Sunday, valued at around 808 billion rials.

Bandar Abbas Oil Refining Company stretched its upside trend within the past two consecutive trading day and topped all listed firms at the TSE, recording the highest positive impact on the benchmark. Pardis Petrochemical Company and Housing Investment Company with close to 33 and 3 points positive contribution took the second and third place.

Mapna Group was the worst laggard and left the most negative impact on the TEDPIX. Islamic Republic of Iran Shipping Lines and Esfahan Oil Refining Company had a downbeat performance and stood after Mapna Group.

  Investors Back Down

In spite of the fact that the recent ambiguities regarding the possibility of a comprehensive nuclear agreement between Iran and the P5+1 are weighing on investors’ attitude at the equity market, other indicators are involved.

Trading approach has always been key to trade sentiment, with long-term approaches reinvigorating the indices, while scalping has been reigning at the TSE for a while now.

Investors are not willing to pour their money to garner stocks with a long-run approach, as they prefer to be bargain-hunters and gain from daily price swings.

Prudent policies have been taken to help the equity market back on track and weed out irregular ups and downs, said managing director of Noavaran َAmin Data Processing Company, Ali Norouzi in an interview with the Financial Tribune. “Picking shares based on precise analysis, observing all contributing factors to the performance of target companies and adopting a long-run approach, is more likely to yield return”.

Commenting on a question regarding the current irregular fluctuations at the equity market, Norouzi went on to say that speculators have been scrambling within the last 4 years, though considering new policies adopted by officials, speculators might not be able to frequently use insider trading.  

Norouzi believes that investors shouldn’t sell risk as soon as they encounter market jitters.