Tehran Stocks Fall for Third Day in a Row

EghtesadOnline: Tehran stocks retreated for the third consecutive day on Monday as base metal and steel shares came under further pressure and the rial strengthened.

News ID: ۷۴۶۳۴۲

18 December 2018

However as the early day selloff was sending Tehran Stock Exchange's main gauge, TEDPIX, into the red for the fall, news that a state regulator has authorized price hikes for domestic cars sent their stocks higher and prevented a worse rout for the market.

News outlets reported that automakers will soon raise factory prices by an average of 70-100%. The news should apparently be a relief for an industry, which  despite an iron-clad monopoly has been sinking in red ink for years.

According to Donyaye-Bourse analytics website, the ongoing investor despondency stems from disappointment from companies earnings reports due before the year ends.   The slump in global commodity prices, in particular steel prices, has battered the stocks, Financial Tribune reported.

Another factor that curbed Sunday's selloff was the more positive outlook for oil. International crude  prices were largely steady on Monday after falling 2% in the previous session, but remained under pressure amid weaker growth in major economies and concerns about oversupply.

The rial made further gains on Monday and was quoted around 100,000 to the dollar, up from 102,000 rials on Sunday. Deputy governor of the Central Bank of Iran Akbar Komijani said the CBI has succeeded in "taming the dollar" but said further reforms in the foreign exchange market are needed to prevent possible crises in the future.

The rial jumped to 105,500 against the US dollar last week from 152,500 at the end of October. The surge in the national currency dashed investors’ hopes about stupendous earnings for export companies.

Indexes Performance

The Tehran Stock Exchange main index lost 1,958.24 points or 1.21% on Monday to end trading at 159,749.9.

About 1.6 billion shares valued at 4.7 trillion rials ($46.23 million) changed hands at TSE for the day.

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

Insurance Industry Investment Company was the biggest winners as its shares went up 4.91% to 6,323 rials.

Absal Company (a producer of household appliances since 1956) incurred the biggest loss among all TSE-listed companies and went down 4.98% to 3,151 rials per share.

Mobarakeh Steel Company contributed the most to the benchmark's fall, followed by Iranian National Copper Industries Company and Omid Investment Management Company.

Tamin Petroleum & Petrochemical Investment Co. (TAPPICO)–owned by the Social Security Investment Company (Shasta)–gave the biggest boost to the benchmark index, followed by Mobin Petrochemical Company and SAIPA Group (a major carmaker).

The Price Index lost 569.20 points to close at 46,438.5.

The First Market Index was down 1,933.42 points to post 117, 026.6. Second Market Index decreased by 1,525.13 points to reach 321,435.9.

The Industry Index went down by 1,818.59 points to register 145,077.4. Free Float Index was down 2,254.07 points to hit 171,202.29.

TSE 30 went down 138.47 point to settle at 7,787.0 and the TSE 50 ended 98.69 points lower to finish at 6,907.2.

IFX Down 0.93%

Iran Fara Bourse’s main index IFX lost 16.93 points or 0.93% to close Monday trade at 1,809.7.

About 994 million securities valued at $46.91million were traded at the over-the-counter exchange for the day.

Esfahan Steel Company had the highest number of traded shares as 302 million of its shares worth $5.51 million changed hands.

Pegah-e Fars Dairy Company registered the highest value increase.

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