Tehran Stocks Fall as Refinery Selloffs Pile Pressure

EghtesadOnline: Tehran Stock Exchange began trading week in negative territory amid volatile global markets and selloff pressure in refinery stocks spurred by the decline in global crude prices in recent days.

News ID: ۷۴۷۴۲۸

26 May 2019

The symbol tickers of all refinery stocks were down to the minimum daily price that brought down the main gauge of TSE up to 1,300 during the mid-day trade. However, with investor sentiment abating in the later hours of trading day, refinery stocks began to make a comeback.

According to a Reuters report, oil prices plunged on Thursday, losing about 5% as trade tensions dampened the demand outlook, putting the crude benchmarks on course for their biggest daily and weekly falls in six months.

However, prices climbed more than 1% on Friday ahead of long US and UK holiday weekends, according to Financial Tribune.

World equity markets rebounded on Friday from the previous day’s sharp fall, boosted after US President Donald Trump said complaints against China’s Huawei Technologies might be resolved within the framework of a Sino-US trade deal.

Trump’s government added Huawei to a trade blacklist last week, escalating trade tensions between the world’s two biggest economies.

Asia Pacific markets traded mixed Friday. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.67% in the afternoon. Mainland Chinese markets were mixed: The Shanghai composite closed flat while the Shenzhen composite fell 0.48%.

European stocks closed higher on Friday. The pan-European Stoxx 600 index closed provisionally almost 0.6% higher with the majority of sectors and all major borses in positive territory. Mining stocks, with their exposure to China and trade news, were among the biggest gainers, jumping over 1%.

TSE Performance

The TSE's main index TEDPIX lost 854.29 points or 0.40% on Saturday to end trading at 214,314.3.

About 2.3 billion shares valued at 8.22 trillion rials ($58.13 million) changed hands at TSE for the day.

Shahdiran, a fruit juice company, was the biggest winner as its shares went up 10.11% to 9,736 rials.

Iran Mercantile Exchange incurred the biggest loss among all TSE-listed companies and went down 5% to 16,437 rials per share.

Bandar Abbas Oil Refining Company, Esfahan Oil Refining, and Tehran Oil Refining Company contributed the most to the benchmark's fall.

Mobile Telecommunication Company of Iran gave the biggest boost to the benchmark index.

Iran Fara Bourse’s main index IFX lost 0.15 points or 0.01% to close Saturday trade at 2,671.35.

About 1.3 billion shares and securities valued at 5.86 trillion rials ($41.43 million) were traded at the over-the-counter exchange for the day.

2-Month Performance

TEDPIX witnessed 20.4% growth since the beginning of the year to May 22 to stand at 215,169 points.

According to the Securities and Exchange News Agency, about 177.83 billion shares and securities worth 464.42 trillion rials ($3.28 billion) were traded in 11.72 million deals during this period.

A total of 125.86 billion shares worth 274.27 trillion rials ($1.93 billion) were traded in the first market, while in the second market traded shares totaled 49.81 billion worth 163.47 trillion rials ($1.15 billion).

About 3 million shares worth 3.18 trillion rials ($21.32 million) were traded in the debt market; and 18.60 million shares worth 212 billion rials ($1.49 million) changed hands in the derivatives market.

In addition, Exchange Traded Funds worth of 23.45 trillion rials ($165.74 million) were traded in the two months period.

The first market and the second market index grew by 27,276 and 70,902 points respectively during the period.