Economy, Business And Markets

TSE Crumbles as Benchmark Sinks to 4-Month Low

TSE Crumbles as Benchmark Sinks to 4-Month LowTSE Crumbles as Benchmark Sinks to 4-Month Low

Carnage overtook Iran's stock markets on Saturday. Shares on both the Tehran Stock Exchange and Iran Fara Bourse dropped, as panic overtook markets with some shares swinging as much as 8%.

Tehran Stock Exchange's trading system broke down in the first hour of trade. When trading resumed around 9:00 am local time, investors unloaded their shares. The rout slowed as the day progressed.

The benchmark index nosedived 1,026 points or 1.35% to record its worst drop since April 16 and close Saturday trade at 74,850.1. Huge losses by oil and gas companies, steelmakers and petrochemicals brought TEDPIX to its lowest in four months.

Over one billion shares valued at $56.1 million were traded on Saturday, with the number of shares traded and daily trade value remaining nearly unchanged compared to the prior trading day.

Pars Switch Company was the day's worst performer as its shares wiped 11.33% of their value to 7,411 rials per share. Darou Pakhsh Pharmaceutical Company and Kaveh Paper Industries Company followed.

Razak Pharmaceutical Company had the highest rise as its shares jumped 12.54% to 2,032 rials each, followed by Sepanta Company and Persian Gulf Petrochemical Industries Company.

It also gave the biggest boost to the benchmark with a P/E ratio of 9 and 19.39 points, followed by Machine Sazi Arak Company and Behshahr Industries Development Company.

Parsian Oil and Gas Development Company weighed most on the benchmark as its shares dropped 4.47% in value to 2,157 rials each. Mobarakeh Steel Company and Persian Gulf Petrochemical Company followed.

The Price Index lost 373.80 points or 1.35% to end at 27,266.

The First Market Index plummeted 910 points or 1.72% to settle at 52,001.7.

The Second Market Index wiped 1,105.40 points or 0.66% to land at 165,897.6.

The Industry Index plunged 882.90 points or 1.39% to reach 62,445.

The Free Float Index sank 1,364.88 points or 1.61% to register 83,168.70.

The TSE 30 Index was down 59.60 points or 1.93% to hit 3,021.4 while the TSE 50 Index dropped 46.60 points or 1.54% to post 2,977.5.

> IFX Breaks Below 800

IFX, Iran Fara Bourse's main index, followed suit and shed 11.53 points or 1.43% to stop at 796.77.

Over 360 million securities valued at $40.6 million changed hands. The number of traded shares and daily trade value had dramatic setbacks compared to Wednesday.

Tehran Oil Refining Company, Middle East Mines and Mineral Industries Development Holding Company and Esfahan Steel Company weighed most on the benchmark.

Pars Paper Company posted the highest number of traded shares as 22.3 million of its shares changed hands, while Parsian Rail Company had the highest daily trade value with the trading of $3.9 million of its shares.

More than 39 million securities valued at $2.9 million were traded in the First Market. The Second Market saw the trading of 93.4 million securities valued at $10.4 million.

Omid Taban Hour Energy Management Company, Niroo Sarmayeh Company and Sobhan Pharmaceutical Company posted the biggest gains in share value, while Ghasem Distribution Company, Taknar Copper Mine and Shiraz Oil Refining Company registered the highest losses.

Etemad Fund, with the transaction of 2.8 million of its shares, recorded the highest trade volume among listed exchange-traded funds.