Economy, Business And Markets

TSE Gripped by Speculations

TSE Gripped by SpeculationsTSE Gripped by Speculations

Despite Tuesday’s landmark nuclear agreement between Iran and world powers, erratic behavior at Tehran Stock Exchange is worrying retail investors just as most institutional investors are snapping bargains.

Various factors are deemed to be contributing to TEDPIX’s downtrend, including the current annual general meetings of listed companies, speculations about dividend per share and manipulative behavior of investors who line up to trigger selloffs and then embark on garnering devalued shares to hedge their bets amid signs of an upcoming bull market.

According to TSE data, TEDPIX lost 605.81 points or 0.87% to settle at 68,827.7. The price index lost 248.91 points or 0.87% to close at 28,266.8. The first market index plunged 647.18 points or 1.3% to 49,328.2. The second market index added 49.54 points or 0.3% to 144,069.6. The industry index retreated 235.5 points or 0.42% to 56,449. The free float index eked out 1,140.37 points or 1.43% to stand at 78,667.1. The TSE 30 index slipped 53.4 points or 1.71% to 3,075.8. And the TSE 50 index also was down 27.8 points or 0.89% to 2,822.3.

More than 1.1 billion shares changed hands valued around $65 million to post nearly 20% and 38% decline in trade volume and value respectively compared with the prior trading day.

More than 69% of listed companies dragged down TSE’s benchmark, with the banking sector on top. This is while the sector was expected to dramatically surge soon after a nuclear deal. Bank Mellat with 103 points topped the TSE laggards followed by Bandar Abbas Oil Refining Company and Bank Pasargad with close to 86 and 68 points in negative contribution respectively.

Persian Gulf Petrochemical Industry Company with 50.87 points provided the biggest boost to TEDPIX followed by Pension Fund and Mobile Telecommunications Company of Iran with 36.52 and 21.12 points respectively.