Economy, Business And Markets

TSE Benchmark Nosedives Amid Bearish Sentiment

TSE Benchmark Nosedives Amid Bearish SentimentTSE Benchmark Nosedives Amid Bearish Sentiment

Tehran Stock Exchange gauge recorded an unprecedented drop on Monday trading as lingering ambiguities kept slashing expectations and pushed t he TEDPIX to shed more than 672 points.

Systematic risks, trading software issues, insider trading and lack of transparency in listed companies balance sheets are to blame, although, the TSE is mostly grappling with uncertainties surrounding the economic growth, and listed companies’ performance accordingly.

According to TSE data, the overall index shed 672.5 points or 1.03 percent to settle at 64,415.8. The first market index retreated 605.9 points or 1.28 percent to stand at 46,807.3. The second market index tumbled 625.7 points or 0.8 percent to 130,480.3. The free float index plummeted 992.5 points or 1.32 percent to end at 74,078.1, dragging down the TEDPIX, as the heaviest laggards. The industry index slipped 455.1 points or 0.85 percent to finish at 52,948.6, and the blue-chip index dropped 36.7 points or 1.23 percent to 2,955.1.

Investors’ overreaction and massive selloffs have made stocks hit rock-bottom values. More than 747 million shares changed hands, valued at 1.81 trillion rials, to post more than 100 percent increase in trade volume and value accordingly.

About 90 percent of listed companies at the TSE underperformed, with oil refining companies, petrochemicals and banking sector leading the losses.

Bandar Abbas Oil Refining Company with close to 58.2 points left the most negative impact on the benchmark. Bank Mellat and Tamin Petroleum & Petrochemical Investment Company with around 55 and 47 points took the second and third place respectively.

Bears have been reigning over the equity market for about a month now, with individual and institutional investors putting everything on hold until the end of nuclear negotiations between Iran and the P5+1 by the end of June.