Economy, Business And Markets

Ambiguities Dominate Equity Market

Ambiguities Dominate Equity MarketAmbiguities Dominate Equity Market

Stocks wax and wane relentlessly, pushing the Tehran Stock Exchange (TSE)’s main index notching new record lows, as the equity market is grappling with uncertainties over the future of the economy.

Stock market corrections of the past few weeks may have fallen flat on a short-term trading basis, but few, if any, foresee anything but volatility ahead.

According to TSE data, the TEDPIX slipped further with a 169.5 points or 0.24 percent to 69,254.5. The first market index eked 142 points or 0.28 percent to settle at 51,103.3. The second market index tumbled 220 points or 0.16 percent to 135,642. The free float index was down 177.9 points or 0.22 percent to stand at 79,314.1. The industry index lost 103.9 points or 0.18 percent to end at 58,049.6, and the blue chip index extended its losses, dropping 9.6 points or 0.31 percent to 3,105.1.

Unlike Monday’s trade, trade volume sharply declined at Tuesday’s close. More than 331 million shares changed hands, valued at almost 1 billion rials.

The National Pension Fund left the most negative impact on the benchmark, while Eghtesad Novin Bank and Persian Gulf Petrochemical Industry Company were other top market laggards during Tuesday’s trading.

The Chadormalu Mining and Industrial Company had the most positive impact on the TEDPIX, and Tamin Pharmaceutical Investment Company and Parsian Oil and Gas Development Company were other companies that outperformed on Tuesday.

The economy has been buoyed by reported cuts in expenditures and a new policy in next year for generating revenues through taxes and other leverages in the wake of the recent plunge in oil prices.

Feedstock, mining royalties, and the prospect of western sanctions are some of the uncertainties hanging over the economy. As the market analysts believe, no drastic shift in TSE’s sentiment is expected in the short run.