Tehran stocks started Saturday amid selloff pressure in most ticker symbols before partially recovering as demand for giants in the market picked up pace.
The main gauge of Tehran Stock Exchange, TEDPIX, shed more than 34,000 points at the start of trading session but pared some losses later to close the session 12,347 points lower, down 0.7%.
The equal-weighted index fell more than TEDPIX, indicating deeper decline of small-cap tickers, finally pushing down the equal-weighted index 1.5%.
Total trading value of TSE and the junior equity market Iran Fara Bourse reached more than 160 trillion rials ($727 million) for the day, according to data released on the Tehran Securities Exchange Technology Management Company website.
Referring to technical analysis and chart patterns, market observers say share prices are prone to some correction after soaring incessantly in recent days.
However, the correction phase appeared short-lived as unprocessed buy orders for large-cap shares in late trading bode well for the next session.
The downturn was partly spurred by unconfirmed reports that the Majlis may suspend government plans to offer its shares on the bourse.
Investor sentiment softened after stock market officials strongly dismissed the reports, saying that the government will move ahead with its scheme outlined in the March 2020-21 budget.
As seen in many previous sessions, disruption on the trading platform was conspicuous on Saturday, causing shares to be traded choppily with many traders wary of taking on new positions under the swings.
Interruption in stock trade has become a new norm that has drawn the ire of investors as they repeatedly complain that their (buy and sell) orders are not processed by the system or done with delays, at times inflicting heavy losses.
About 9.57 billion shares valued at 160.19 trillion rials ($715.16 million) changed hands at TSE for the day.
Omid Investment Management Group Company contributed the most to the benchmark's fall, followed by Mapna Group, Mellat Bank and Mobile Telecommunication Company of Iran.
The Social Security Investment Company gave the biggest boost to the benchmark index, followed by Persian Gulf Petrochemical Industries Company, Tehran Oil Refining Company and Esfahan Oil Refining Company.
IFX Closes Flat
Iran Fara Bourse main index IFX gained 7.51 points or 0.04% to close Saturday trade at 18,167.5.
About 3.43 billion securities valued at 69.23 trillion rials ($309.06 million) were traded at the over-the-counter exchange for the day.
Middle East Mines and Mineral Industries Development Holding Company, Zagros Petrochemical Company, Pasargad Insurance Company and Mehr Ayandegan Financial Development Group Company had the most negative impact on IFX.
Gohar Zamin Iron Ore Company gave the biggest boost to IFX, followed by Marun Petrochemical Company, Saba Tamin Investment Company and Shahid Tondgooyan Petrochemical Company.
