Tehran Stock Exchange's (TSE) indices failed to contribute to the TEDPIX’s uptrend on Tuesday, wiping out part of the recent gains.
After the persistent bullish trend in the equity market within the past couple of days, the TSE’s benchmark has witnessed a series of downturns, which are expected to be associated to the recent Initial public Offerings (IPOs), as well as the cloudy atmosphere of the current nuclear talks.
According to the TSE’s website, the TEDPIX tumbled 556.5 points or 0.73 percent to 75,992.1, recording a negative trading day. The first market index lost 389.5 points or 0.69 percent to stand at 55,799.3. The second market index slipped 1,228.2 points or 0.83 percent to 146,694.8.
The free floating index dropped 669.4 points or 0.77 percent to 86,827.7. The industry index fell 426.3 points or 0.47 percent to 62,909.5, and the blue chip index shed 25.3 points or 0.73 percent to 3,461.
More than 722 million shares reportedly changed hands, worth almost 1.92 trillion rials, indicating further decline compared to the previous trading day.
Based on the TSE’s data, Azarab Industrial Company had the highest volume of trades, with a small positive impact on the benchmark. Saderat Bank and Saipa Diesel Company took second and third place respectively.
Large listed companies at the TSE, including financial groups, petrochemicals and leading car manufacturers heavily weighed on the market’s trend, pushing the TEDPIX into red.
Unsettled investors are eying the current nuclear talks, awaiting a fianl nuclear deal by November 24 deadline.
Iran and the P5+1 hope to clinch a nuclear deal, which would dramatically change the prospect of Iran’s economy, leading the stock market’s gauge to notch new highs as in 2013.
The unprecedented surge in market’s liquidity offered bustling trading days, helping the TSE back on track, recording more than 6 percent hike.
The positive atmosphere in the stock market convinced the TSE authorities to launch a few new IPOs, which is considered another contributing factor to the recent bearish trend at the stock exchange.
Despite the newly injected inflows of money to the equity market, some investors sold off their shares, in a bid to provide liquidity, snapping up newly debuted shares.
Some market analysts blamed the recent IPOs, for the market’s downturn, although the TSE market deputy, Ali Sahraie rejected the criticism, claiming that the IPOs were launched in coordination with the Securities and Exchange Organization.
“These recent IPOs helped the dramatic surge in the equity market’s liquidity, providing cash flows for respective industries,” SENA quoted Sahraie as saying on Monday.
The bullish trend has halted for the moment, although the recent downturn is mostly associated with the irregular behavior of investors, placing their bets on the back of the constantly changing situation regarding the nuclear talks.
