Stocks waxed and waned on Sunday, causing the Tehran Stock Exchange (TSE)’s main index to keep tumbling and notch its 7th straight decline.
According to TSE data, stocks slid further after all indices once again pushed the TEDPIX to settle in red territory.
The benchmark extended its losses, and dipped 179.3 points or 0.26 percent to 68,650.6. The first market index lost 171.3 points or 0.34 percent to stand at 50,655.8. The second market index was down 93.9 points or 0.07 percent to finish at 134,406.1. The free floating index plummeted 95.2 points or 0.12 percent to 78,779.4. The industry index slipped 161.4 points or 0.28 percent to 57,587.4, and the blue chip index edged down 5.3 points or 0.17 percent to 3,086.3.
More than 306 million shares changed hands, valued at almost 682 billion rials. The low volume and value of trade is due to the massive devaluation of stocks within the past couple of months, which stoked fear among investors.
The administration is trying to come up with some sort of stimulus in a bid to give a boost to the volume and value of trade, convincing both individual and institutional investors to shore up their portfolios.
In a sluggish trading day, Khorasan Steel Company, with more than 80 percent negative contribution, dramatically dragged down the benchmark. Tamin Petroleum & Petrochemical Investment Company and Ghadir Investment Company were other market laggards on Sunday.
The persistent bearish trend at the equity market underscores its vulnerability to market jitters, as the benchmark keeps shrugging off the officials’ optimistic statements.
Despite the newly-appointed chief of the Securities and Exchange Organization (SEO)’s pledge to revive the stock market, unsettled sentiment dominated the TSE.
Mohammad Fetanatfard has recently stressed that the SEO and the government along with other correlated ministries are determined to tackle ambiguities surrounding the equity market.
Furthermore, in a bid to help reinvigorate the equity market, a financial stability committee has been set up within the SEO, which aims to be in charge of coordinating the policies of SEO and its affiliates.
In an interview with SENA, minister for Economic Affairs and Finance Ali Tayebnia, said he believes that stocks have reached the rock-bottom, projecting a spectacular opportunity for investors to garner shares. However, he warned that listed companies performance should be precisely analyzed.
“We have had practical meetings with market affiliates in a bid to diminish challenges facing the listed industries,” said Ali Tayebnia, adding that “economic indicators do not project a gloomy atmosphere, and the sentiment is expected to shift to the green territory accordingly.”
“Liquidity is the most crucial issue facing the listed industries”, said Tayebnia, adding that the gloom hanging over various sectors is likely to diminish in the foreseeable future.
Market analysts believe that skeptical investors have already withdrawn part of their capital; however this move is temporary and investors are expected to flock to the stock market once stability returns to the TSE.
As the equity market is waiting for the outcome of the nuclear talks, a shift in the price of oil, and transparency in the next fiscal budget, lingering worries may weigh on the TEDPIX in the short run.
