Stock indices slid further at Wednesday’s close, after dropping as much as 1.5 percent on Tuesday, dragging down the Tehran Stock Exchange (TSE)’s benchmark from its recent record highs.
The current ambiguous atmosphere seems to have clouded the judgment of individual and institutional investors, weighing heavily on the stock market and pushing the TEDPIX to continue wiping out some of its recent gains.
Investors are about to digest the news on the extension of the nuclear talks between Iran and the p5+1, although overreaction still partly dominates the stock market.
According to the TSE’s website, all indices contributed to record this week’s third negative trading day, with the benchmark losing 664.9 points or 0.89 percent to 74,076.
The first market index gave up 572.2 points or 1.03 percent to stand at 54,772. The second market index slipped 770.1 points or 0.53 percent to end at 144,366.9. The free floating index left the heaviest negative impact on the TSE’s gauge, after it tumbled 1,073.2 points or 1.24 percent to settle at 85,380.9. The industry index was down 365.1 points or 0.57 percent to 61,766.5, and the blue chip index along with other indices plummeted 59.6 points or 1.74 percent to broadcast another gloomy day for the industries. However, market analysts emphasize that the current downbeat won’t be a persistent one and will end in the near future.
Wednesday’s trade was not as gloomy as Tuesday’s, as unsettled investors seem to be clearing their judgment from emotion, although this process may take a few days.
Trade volume and value is an authentic proof to support the idea that the equity market is struggling to tackle prevailing ambiguities.
Almost 1.3 trillion shares changed hands, worth close to 2.8 trillion rials, underscoring an average 50 percent surge for both trade volume and value.
Given the temporary downbeat outlook for financial group, long lines still exist at the TSE, with skeptical investors avid to sell off shares in a bid to hedge their bets.
Auto industry, which has recently changed to a risky one for part of investors, was not witnessing a sell-off trading day, although all of the group’s members stood among the leading market laggards.
The upcoming auto conference in Iran is portraying a bright outlook for the industry, as more than 70 participants will take part from various countries including France, Germany, Japan, the US, Austria, Sweden and Spain.
It has been estimated that restrictions on the auto industry are likely to be lifted within the next few months. A large number of participants at the auto industry conference have expressed that they see it as a significant event.
Market analysts predict a shift in the status of the listed auto manufacturers at the equity market following the two-day conference.
“The imminent contracts of local car manufacturers with global auto giants are forecasted to improve the industry’s position at the stock market,” Amin Azarian, a market analyst, told the Financial Tribune.
He also underscored that investors should consider long-term investment at the equity market, while in order to shore up their portfolios, they must take diversification seriously into consideration.
The overall prospect of the equity market may not be gloomy, though due to the some uncertainties reigning over the listed industries at the equity market, leading stocks may wax and wane in the next official trading days.
