Economy, Business And Markets

TSE Rout Continues Amid Widespread Selloffs

TSE Rout Continues Amid Widespread SelloffsTSE Rout Continues Amid Widespread Selloffs

Tehran Stock Exchange’s main index extended its losing streak for the fifth consecutive day at Saturday’s close, with almost all leading listed companies reaching their negative volatility cap amid massive selloffs.

Investors fretted over TSE’s dented sentiment, selling off their shares and surprisingly shrugged off the most upbeat news that both retail and institutional investors have been waiting for: the nuclear deal.

Normally, listed companies outperform on positive speculations about the overall economic atmosphere and positive outlook of their performance in the mid or long run. However, TEDPIX has plunged 3.5% since the deal was announced on July 14.

Other factors behind the TSE rout include the annual general meetings season, which normally weigh on benchmark, lack of liquidity and alleged manipulation of the equity market.

According to TSE data, TEDPIX shed 607.6 points or 0.9% to end its 5th consecutive trading day at 67,036.3. The price index tumbled 244 points or 0.9% to close at 26,916.5. The first market index fell 271.1 points or 0.56% to 48,202.8. The second market index plunged 2,256.1 points or 1.59% to settle at 139,370.9. The industry index dropped 566.3 points or 1.2% to 54,915.1. The free float index tumbled 750.78 points or 0.97% to 76,339.2. The TSE index slipped 27.5 points or 0.91% to 2,991.3; and the TSE 50 index was down 24.8 points or 0.9% to stand at 2,745.5.

More than 391 million shares changed hands valued at $31.25. Trade volume was dramatically down compared with the previous trading days. However trade value posted around 40% growth compared with the prior trading day.

More than 81% of listed companies had a downbeat performance. Tamin Petroleum & Petrochemical Investment Company with -127.43 points was the biggest market laggard followed by Parsian Oil and Gas Development Company and Ghadir Investment Company with close to 106 and 101 points respectively.

Other big companies also witnessed massive selloffs, including car manufacturers that are about to sign joint-venture agreements with their western counterparts.

French carmaker Renault SA is in talks to buy a minority stake or manufacturing plants from its Iranian joint venture partner, according to an executive at the Iranian firm, Wall Street Journal reported.

Nasser Aqamohammadi, managing director of Renault’s state-controlled partner Pars Khodro, said the French firm is “in discussions” to buy less than half of the shares in his company.

A spokeswoman for Renault declined to comment. People familiar with the matter have previously said Renault executives intend to invest in Pars Khodro as soon as sanctions imposed on Iran against its nuclear energy program are lifted.