Iran's main stock market closed at a three-month low Wednesday amid a bearish global market and weak oil prices.
Wednesday's session, which marked the last trading day in the fall, saw Tehran Stock Exchange's main gauge tumble to the 156,000 level which is only two points away from the 154,000 point–a level most analysts believe to be the support level that the market will not break until the yearend on March 20.
Global equity and crude oil markets attempted a tentative recovery on Wednesday after three days of sharp losses that saw investors seek out the safety of bonds amid mounting pessimism over world growth.
According to a Wednesday report by Reuter, oil’s spectacular fall - down almost 10% since last Thursday - and world stocks’ plunge to 19-month lows have spurred speculation the US Federal Reserve might be done with tightening after its policy meeting later in the day.
Other commodities are no better; base metals traded on the Shanghai Futures Exchange were mostly down during Asian morning trading on Wednesday following Chinese President Xi Jinping’s speech on Tuesday, which lacked concrete steps to improve the economy and diffuse trade tensions with the United States—and more recently, Canada.
As oil refinery and commodity stocks lost ground on TSE, bank and auto stocks were among the few stocks where demand kept rising.
According to Donya-e Bourse analytics website, while small investors were mostly sellers on Wednesday, institutional investors mounted an effort to support the market by purchasing more shares.
Analysts believe that the only thing that could lift the market under current conditions is a positive catalyst such as a rally in global markets, good earnings results for listed companies or the establishment of an official foreign exchange market.
Indexes Performance
The TSE's main index TEDPIX lost 3,063.25 points or 1.29% on Wednesday to end trading at 156,083.2.
About 1 .25 billion shares valued at 9.37 trillion rials ($91.94 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Bojnourd Cement Company (a subsidiary of the Cement Holding "Fars and Khuzestan" located in North Khorasan province) was the biggest winners as its shares went up 5% to 4,854 rials.
Salemin Company ( a food producer subsidiary of Shirin Asal Food Industrial Group) incurred the biggest loss among all TSE-listed companies and went down 5% to 52,250 rials per share.
Mobarakeh Steel Company contributed the most to the benchmark's fall, followed by Golgohar Mineral and Industrial Company and Persian Gulf Petrochemical Industries Company.
Bank Mellat gave the biggest boost to the benchmark index, followed by Bank Saderat Iran and Eghtesad Novin Bank.
The Price Index lost 890.39 points to close at 45,372.6.
The First Market Index was down 2473.74 points to post 114, 283.3. Second Market Index decreased by 5,052.45 points to reach 314,334.6.
The Industry Index went down by 3,200.24 points to register 141,205.8. Free Float Index was down 3,033.45 points to hit 167,548.19.
TSE 30 went down 759.47 points to settle at 7,595.8 and the TSE 50 ended 146.73 points lower to finish at 6,737.4.
Iran Fara Bourse’s main index IFX lost 17.62 points or 0.97% to close Wednesday trade at 1,790.99.
About 739 million shares and securities valued at $38.47 million were traded at the over-the-counter exchange for the day.
