Tehran Stocks in Negative Territory

The downward trend, which started in the midday trade on Sunday, gained momentum on Monday, causing the main gauge of Tehran Stock Exchange to drop more than 0.5%. 

According to Donyaye Bourse website, the market has entered a corrective phase that has particularly targeted the commodity stocks. The massive selloff for commodity stocks came against many market analysts’ expectations, as prices of crude oil and metals soared in the global markets. 

Oil prices rose over $2 a barrel on Monday, as OPEC and its allies were on track to extend supply cuts until at least the end of 2019 at their meeting in Vienna, Austria, this week, Financial Tribune reported.

However, the selloff can be ascribed to the fact that many investors, who had made substantial gains over the past weeks, turned to a sell position in the hope that they could save earlier profits.    

The stocks of major steel companies incurred the biggest losses and contributed the most to the benchmark fall. This is while the metal stocks outperformed last week, spurred by positive financial reports.  

The latest data reporting on the financial performance of the listed companies indicate that Mobarakeh Steel Company’s sales were worth 30.7 trillion rials ($230 million) over the past Iranian month and 95 trillion rials ($730 million) during the first quarter of the current fiscal year (March 21- June 21). 

The company is the biggest steel producer in the region, accounting for 50% of Iran’s steel in all major markets, including automotive, construction and household appliances.  

Stocks in major world markets rallied on Monday. According to Reuters, European stock futures rallied in early trade, hitting their highest level since August 2018 as investors piled into assets considered riskier after Washington and Beijing agreed to resume trade talks, averting an escalation of a protracted dispute.

Southeast Asian stock markets saw a relief rally on Monday after weeks of volatile trade. Mainland Chinese shares soared on the day. The Shanghai composite added 2.22% to about 3,044.90, while the Shenzhen component soared 3.84% to 9,530.46. 

In Japan, the Nikkei 225 jumped 2.13% to close at 21,729.97, with shares of index heavyweight and robot-maker Fanuc soaring about 3%. The Topix index also gained 2.17% to finish its trading day at 1,584.85.

Market Performance 

TSE's main index TEDPIX lost 1,410.54 points or 0.57% on Monday to end trading at 247,122.5.

About 2.8 billion shares valued at 9.83 trillion rials ($76.24 million) changed hands at TSE for the day.

Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.

Exir Pharmaceutical Company was the biggest winner, as its shares went up 5% to 21,609 rials. 

Navard and Steel Production Company incurred the biggest loss among all TSE-listed companies and went down 5% to 16,010 rials per share.

Mobarakeh Steel Company contributed the most to the benchmark's fall, followed by Tehran Oil Refining Company, Bandar Abbas Oil Refining Company and Tabriz Oil Refining Company.

Persian Gulf Petrochemical Industries Company gave the biggest boost to the benchmark index, followed by Ghadir Investment Company and Iranian National Investment Company.

Iran Fara Bourse’s main index IFX lost 8.78 points or 0.27% to close Monday trade at 3,185.28.

About 1.89 billion shares and securities valued at 10.18 trillion rials ($78.94 million) were traded at the over-the-counter exchange for the day.