Economy, Business And Markets

TEDPIX Nosedives to New Low Since March 17

TEDPIX Nosedives to New Low  Since March 17TEDPIX Nosedives to New Low  Since March 17

The gloomy economy, lingering western sanctions against Iran’s nuclear program and investors’ overreaction fueled a massive selloff on Tuesday with Tehran Stock Exchange’s gauge recording a record low since the beginning of the current Iranian year (March 21).

As investors fretted over ambiguities hanging over the economy, overreactions and profit-taking pressures dragged the benchmark to plunge 634.9 points or 1.01 percent to stand at 62,317.4.

TSE data illustrate that nearly 85 percent of the listed companies had a downbeat performance with all primary listed industries settling in red. Formerly high-yielding companies have already seen dramatic retreat in their shares’ value with some of them being traded below their intrinsic values.

The first market index plummeted 464.4 points or 1.03 percent to 44,773. The second market index shed 1,269 points or 0.97 percent to end at 129,766. The free float index tumbled 828.6 points or 1.16 percent to 70,781.4.

The industry index dropped 518.4 points or 1 percent to settle at 51,551.3 and the blue-chip index lost 28.6 points or one percent to finish a gloomy trading day at 2,834.

Panicked investors lined up to get rid of shares to mitigate their losses. However, trade volume and value dramatically declined compared with the prior trading day with more than 312 million shares changing hands valued at about $16.5 million.

Mobarakeh Steel Company with PE of 4.3 was the biggest market laggard, leaving the most negative impact on TEDPIX. Persian Gulf Petrochemical Industry Company and Bandar Abbas Oil Refining Company with close to 55 and 54 points followed the MSC.

Almost all market analysts indicate that nothing is expected to get the equity market back on track except the removal of the most crucial risk, namely the lingering western sanctions.