Tehran Stock Exchange's Main Index Plunges 4%

EghtesadOnline: The rout in Tehran stock markets continued on Monday as risk-averse investors reacted to rumors surrounding Iran's accession to the UN Terrorism Financing Convention in early trade with the safe-haven dollar’s decline hurting sentiment and dragging down the broader market.

News ID: ۷۴۶۰۴۳

08 October 2018

Tehran Stock Exchange led the decline, with the benchmark TEDPIX ending the day down 4.16% or 7,665.83 points, at 176,419.4 – taking the market below the 180,000 support level. Over-the-counter Fara Bourse’s main index IFX lost 88.84 points or 4.21% to close Sunday trade at 2,020.33.

Another reason for Sunday's down market was said to be the unprofessional behavior of inexperienced investors who have flocked to the market in recent weeks in hopes of quick gains.

While it was expected that the current week would mark the beginning of a fresh rally after a series of corrections, investor sentiment was dampened by political uncertainty and a stronger rial, Financial Tribune reported.

Despite the uncertainty, news that the Majlis had approved Iran's accession to the International Convention for the Suppression of the Financing of Terrorism in late trade staunched a heavier crash. The law, if approved by the vetting body the Guardian Council– would clear a major hurdle to improve Iran's status with the global anti-money laundering body the Financial Action Task Force.

According to the website Donyaye Bourse, the market reacted positively upon hearing the news, with share trade experiencing a rise of more than 3 trillion rials ( $22.7 million) in less than 10 minutes. The website predicts much better times for the stock market before more investors find the confidence to act more boldly.

The rial on Sunday gained against the US dollar, being traded around 130,000 rials and up from 132,000 the day before.  Volatility in the foreign exchange market which has seen the national currency lose nearly 75% of its value in the past six months has been the main force behind the bull market.

>Market Indexes

Tehran Stock Exchange’s main index lost 7,665.83 points or 4.16% on Sunday to end trading at 176,419.4.

About 4.45 billion shares valued at $140.86 million changed hands at TSE for the day.

Trading at TSE and Iran Fara Bourse starts on Saturday and ends on Wednesday.

Pars Oil Co. was the biggest winner as its shares went up 5% to 13,798 rials per share.

Ardakan Industrial Ceramics Co. incurred the biggest loss among all TSE-listed companies and went down 10.51% to 4,046 rials per share.

Persian Gulf Petrochemical Industries Company was the biggest laggard behind the benchmark's fall, followed by Mobarakeh Steel Company, and Golgohar Mining and Industrial Complex.

Pars Oil Co. gave the biggest boost to the benchmark index, followed by Saman Kish Electronic Payment Company, and Melli Industrial Group.

The Price Index lost 2,240.42 points to close at 51,561.7.

The First Market Index was down 5,227.74 points to post 132,155.3.

The Second Market Index declined by 17,280.26 points to reach 340,860.7.

The Industry Index went down by 7,078.16 points to register 159,364.8.

The Free Float Index was down 7,533.08 points to hit 189,735.13.

The TSE 30 went down 376.58 point to settle at 8,561.8 and the TSE 50 ended 358.10 points lower to finish at 7,579.4.

> IFX Down 4.21%

Iran Fara Bourse’s main index IFX lost 88.84 points or 4.21% to close Sunday trade at 2,020.33.

About 1.01 billion securities valued at $36.7 million were traded at the over-the-counter exchange for the day.

Sarcheshmeh Copper Investment Company had the highest number of traded shares and trade value as 52.73 million of its shares worth $2.38 million were traded.

Kish Parsian Electronic Commerce, Rail Seir Kowsar Co, and Ghiam Co. registered the highest value increase.

Iran & Shargh Leasing Company, Bank Day, and Atrin Nakh Qom Co. suffered the biggest decline.

Marun Petrochemical Company, Zagros Petrochemical Company, and Esfahan Steel Company had the most negative impact on IFX.