Economy, Business And Markets

Stocks Retreat Amid Annual General Meetings

Stocks Retreat Amid Annual General MeetingsStocks Retreat Amid Annual General Meetings

Stocks at Tehran Stock Exchange retreated more into correction territory on Monday mostly as a result of annual general meetings of the companies, including banks and refining companies.

TSE’s pullback following the nuclear accord reached between Iran and six world powers last week has shocked investors and analysts, raising speculations about the root causes.

Investors’ irregular behavior, AGMs, alleged manipulation of the stock market by institutional investors and unsettled retail investors are to blame for the sagging equity market. Despite two consecutive negative trading days at TSE, market analysts believe correction is unlikely to continue.

According to TSE data, TEDPIX shed 679.33 points or 0.99% to 68,148.4. The price index lost 278.9 points or 0.99% to 27,977.1. The first market index slipped 467.2 points or 0.95% to 48,861. The second market index tumbled 1,543.4 points or 1.07% to settle at 142,525.6. The industry index dropped 504.1 points or 0.89% to 55,944.9. The free float index sank 886.97 points or 1.13% to 77,780.1. The TSE index fell 28.5 points or 0.93% to stand at 3,047.3 and the TSE 50 index also slid 313 points or 1.11% to close at 2,791.

More than 699 million shares changed hands valued at $131.24 million. Daily trade volume compared with Wednesday saw about 40% decline; however trade value dramatically surged to 105%.

Most of the listed companies weighed on the TSE gauge, with Islamic Republic of Iran Shipping Lines on top of market laggards. The IRISL with 104 points left the most negative impact on TEDPIX. Bandar Abbas Oil Refining Company and Tamin Petroleum & Petrochemical Investment Company came next.

Persian Gulf Petrochemical Industry Company, with the highest trade value at TSE, provided the biggest boost to TSE benchmark.

  IFX in Red

Stocks at Iran Fara Bourse recorded tangible retreat on Monday, with the overall index notching down 10.69 points or 1.32% to close at 800.46.

As IFB reported, more than 475 million securities were traded in 10,945 transactions valued at $36.54 million.

Iranian Investment Petrochemical Group with daily trade of 17,890,000 shares worth $976,307 registered the highest trade volume and value.

The highest rise in shares’ value was recorded for Minoo Group, Alborz Bulk and Afra Net. Taknar Company and Tehran Housing Investment Company’s rights offerings saw the biggest retreat.

The fixed-income market witnessed the trade of 93,230 leasing bonds. Etemad Fund, with up to 1.45 million shares recorded the highest trade volume and value among listed exchange-traded funds at IFB.