Stocks’ sharp retreat continued on Sunday, after most of the shares at the equity market witnessed panicked selloffs due to the fragile atmosphere at Saturday’s close.
Failing to snap the TSE’s longest losing streak in a year, the benchmark ended the 12th consecutive day in red to register more than 6.8 percent retreat.
Most of the listed companies at the TSE saw lineups to get rid of shares amid cloudy outlook of the economy, which dragged down all indices, weighing dramatically on the TSE’s sentiment.
According to TSE data, the overall index shed 685.2 points or 1.04 percent to settle at 65,512.7 to intensify the critical atmosphere of the equity market.
The first market index was off 586.8 points or 1.04 percent to stand at 48,517.5. The second market index tumbled 806.1 points or 0.63 percent to finish at 127,157.9. The free float index plummeted 1,013.8 points or 1.34 percent to record another dismal trading day at 74,651.7. The industry index dropped 485.5 points or 0.87 percent to stand at 55,113.7, and the blue chip index dipped 37.4 points or 1.25 percent to indicate how gloomy the speculations are over the performance of top listed firms at the equity market.
More than 83 percent of firms at the TSE registered downbeat performance, causing panicked selloffs. Shaky individual and institutional investors are grappling with heavy losses, which make them cautious in trade. The slashed expectations on the performance of companies at the time when the economy has been buoyed by dramatic cut in expenditures has seen the volume and value of trade post new record lows in the past few weeks. More than 564 million shares changed hands, valued at almost 1 trillion rials at Sunday’s trading.
Mellat bank with more than 49 points, Mapna Group with more than 46 points, and Parsian Oil and Gas Development Company with up to 44 point negative contribution to the TEDPIX, were the major market laggards. However, a large number of previously high yielding companies also contributed negatively to the massive retreat on Sunday. Financial groups, petrochemicals, auto manufacturers, and metals were among the leading industries that dragged down the TSE’s gauge.
TSE’s Top 50 Companies
The names of the top 50 listed companies at the third quarter were announced by the TSE, SENA reported on Sunday.
Persian Gulf Petrochemical Industry Company, telecommunication Company of Iran, Mobarakeh Steel Company, Mobile Telecommunication Company of Iran, and Tamin Pharmaceutical Investment Company, were the top 5 active firms in automn.
Ghadir Investment Company, Parsian Oil and Gas Development Company, Mellat Bank, Golgohar Mining and Industrial Company, National Iranian Copper Industries Company, and IRISL Group came next.
The report indicated that various factors including liquidity of shares, the magnitude of effect on the TSE’s benchmark and financial advantages compared to other listed companies are considered while determining the top listed firms. The volume of trade, the frequency of trade, the average published shares, and the average market value within the quarter are the other contributing factors, the report suggested.
Practical Decisions to Revive Stock Market
Essential factors to set feedstock prices, the return of refineries to the Tehran Stock Exchange (TSE), and a cutback in mine royalties were some of the matters decided by the Financial Stability Committee in a bid to help the equity market get back on track, SENA quoted Mohammad Fetanatfard.
After three consistent meetings, the equity market’s newly established committee revealed its decisions aimed at tackling the prevailing issues that keep squeezing the shares’ value.
The committee wrapped up after it determined a set of crucial factors to price the feedstock, and decided to lower mines royalties with respect to the iron ore slump. It was also decided that petrochemical companies will be licensed to sell out some specific commodities in free market away from the mercantile exchange. However, decisions on standardization and building transparency for petrochemical feedstock were postponed to a later date, informed Fetanatfard; adding that the committee referred some of the issues “to the administration for a final decision.”
Making the remarks in a meeting with a group of market participants to analyze the prevailing uncertainties weighing on the stock market, Fetanatfard went on to say that “due to the listed industries’ challenges, the committee came up with some practical solutions, however, some of them should be ratified within the cabinet”.
