Stocks registered their second rout in Tehran Stock Exchange (TSE) on Saturday since the beginning of the new Iranian year, which started March 20, with petrochemicals dragging down the benchmark, however investors shrugged off the fresh EU sanctions on Bank Tejarat and Islamic Republic of Iran Shipping Lines affiliated companies.
The TSE gauge’s sentiment reversed on Saturday, with the TEDPIX shedding 661.9 points or 0.94 percent to stand at 70,022.8, after Tamin Petroleum & Petrochemical Investment Company, Parsian Oil and Gas Development Company, Mapna Group weighed on the benchmark.
Despite the fact that the IRISL underperformed after the EU reinstated sanctions on Bank Tejarat and 32 shipping companies, investors opted for Bank Tejarat and lined up to garner its shares, helping the bank to outperform.
According to TSE data, all indices retreated, with the second market index leading the losers. The first market index dropped 521.5 points or 0.81 percent to end at 51,605.9. The second market index tumbled 1,729.1 points or 1.24 percent to settle at 137,582.9. The free float index fell 861.1 points or 1.05 percent to 81,510.5. The industry index pulled back 583 points or 1.01 percent to 56,960.9, and the blue-chip index slipped 34.1 points or 1.02 percent to stand at 3,307.9.
More than 1.45 billion shares changed hands in a red trading day, valued at close to 2.63 trillion rials.
The banking sector is still reigning over the equity market, with the highest inflows and outflows having been registered for the sector at the equity market. Bank Tejarat recorded the highest volume of trade, as its dramatically low Price Earnings ratio (P/E) of 3.1 is still grabbing investors’ attentions to shore up their portfolios with such lucrative shares. Bank Saderat and Pars Khodro – an auto manufacturer – followed Bank Tejarat and took the second and third place respectively.
The banking sector also registered the highest trade value, with Bank Tejarat, Bank Saderat and Bank Mellat on top of the list.
Bandar Abbas Oil Refining Company narrowly met its 4 percent validity cap, as investors lined up to buy its shares, helping the firm to record the most positive contribution to the benchmark. Bank Tejarat with almost 30 points and Bank Mellat with close to 8 points stood after the refining company.
Main Laggards
Various factors weighed on the TEDPIX, pushing it to record its second negative trading day within the past 11 days. According to bourspress, the overreaction on the part of the unsettled investors coupled with the concerns over latest development in Yemen pushed risk avert investors to stay away from jitters that may affect the equity market.
Institutional investors reportedly offered hoard of securities in the banking, auto, and refining sectors, which sent a negative signal to the shareholders, and added to the current stressors, which intensified the negative sentiment.
As the overall index approached its 70,000-level resistant level, analysts predict that the underlying risks are expected to be mitigated in the coming days.
Meanwhile, the upcoming IPOs are also expected to help the equity market get back on track.
IFX Settles in Red Territory
Iran Farabourse (over-the-counter) main index IFX lost ground and dropped 9.54 points or 1.23 percent to stand at 763.92, Iran Farabourse reported.
More than 167 million shares changed hands, valued at around $24.8 million, with Hormozgan Steel Company recording the highest trade volume.
The highest growth was recorded for HSC, KBC, and Tehran Petrochemical Company (5 percent price), with the HSC and TPC leaving the highest positive contribution to the benchmark.
More than 120,020 shares changed hands in fixed income securities market, with Atlas Exchange Trading Fund registering the highest volume of trade.
Bank Iran Zamin is reportedly filing for Initial Public Offering, with a 8.64 percent of its shares set to be offered to potential customers via block trade on Sunday.
