Economy, Business And Markets

Lingering RisksWeigh on TEDPIX

Lingering RisksWeigh on TEDPIXLingering RisksWeigh on TEDPIX

Most indices dragged down the Tehran Stock Exchange overall index at Sunday’s close, after enduring risks and ambiguities surrounding the equity market kept slashing expectations about listed companies’ performance at the TSE.

After 3 consecutive positive trading days, about 63 percent of listed companies at the TSE underperformed, to revise the sentiment, weighing on the TEDPIX to lose 0.1 percent to settle in red territory.

According to TSE data, the TEDPIX notched down 65.9 points or 0.1 percent to end at 63,465.5. The first market index edged down 0.3 percent to record a flat trading day. The second market index shed 437.5 points or 0.34 percent to 130,057.5. The free float index tumbled 174 points or 0.24 percent to 72,822.9. The industry index as the only positive contributor to the TSE’s gauge, gained 30.5 points or 0.06 percent to stand at 52,142.8, and the blue-chip index eked out 3.2 points or 0.11 percent to 2,909.3.

Sluggish trade at the TSE was accompanied by lousy trade volume and value as about 432 million shares changed hands, valued at $27.7 million.

Omid Investment Group Corporation (OIGC), with the Price Earnings ratio of 4, and close to 4.3 million shares, topped the highest trade volume. Rena Industrial Group Investment Company, with a negative PE, almost hit its volatility cap in red territory and took the second place. Finally, Saipa Group - a car manufacturer – with 4.1 million shares and negative contribution to the TEDPIX occupied the third place.

Parsian Oil and Gas Development Company, with 57.27 points outperformed and left the highest positive impact on the benchmark. The OIGC and Mobarakeh Steel Company with around 43 and 33 points took the second and third place respectively.

Mobin Petrochemical Company (MPC), with close to 30 points in negative contribution to the TEDPIX, recorded the most negative impact. Bank Mellat and Tamin Petroleum & Petrochemical Investment Company, with close to 29 and 25 points stood after the MPC.

The TSE is witnessing so many fluctuations in most of the shares, which makes trading hard for daily speculators. Overreactions, the wobbling economy due to the gloom hanging over major industries in Iran, a credit crunch, recession, and lingering nuclear negotiations between Iran and the P5+1 are the most crucial systematic risks in the capital market.

“The capital market is gripped by prevailing recession, and dramatic liquidity nosedives, which have spooked investors, with the equity market experiencing lousy trades,” SENA quoted Mehdi Tahani, a market analysts.

Tahani further noted that the gloomy atmosphere of the economy is the root cause; however, unsettled investors blame the Securities and Exchange Organization for the bearish sentiment in the stock market.

He encouraged investors to embark on garnering undervalued shares, adding that “the current prices at the equity market have never been this lucrative; this may not happen again.”