Tehran Stock Market Dips 0.93%

EghtesadOnline: Tehran Stock Exchange led a bear market in the first day of the trading week on Saturday influenced by decline in international bourses and crude oil prices.

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02 June 2019

TSE trade featured a massive sell-off in commodity and metal stocks in the early hours of the day and an increase in the buying of bank and auto stocks later in the day.

The main gauge of Tehran Stock Exchange shed over 2,000 points of its earlier gains on Saturday to close trading day at 222,238 points.

Sell-off in early trading pushed down the main index of TSE TEDPIX up to 3,000 points in spite of the fact that symbol tickers of refinery stocks were frozen, according to Financial Tribune.

According to Donyaye Bourse website, the absence of refinery companies in Saturday’s trade averted further benchmark fall and helped in abating investor sentiment.

According to Reuters, oil slumped over 3% on Friday and posted its biggest monthly drop in six months, after US President Donald Trump stoked global trade tensions by threatening tariffs on Mexico, a key US trade partner and major supplier of crude oil.

Brent touched a session low of $64.37 a barrel, lowest since March 8. West Texas Intermediate hit $53.41 a barrel, weakest since Feb. 14.

Trump vowed on Thursday to ratchet up tariffs unless Mexico stopped people from illegally crossing into the United States. The plan would impose a 5% tariff on Mexican imports starting on June 10 and increase monthly, up to 25% on Oct. 1.

European stocks tanked on Friday. The pan-Europe STOXX 600 fell 0.8% on the day to close out May with a 5.7% slide, its worst monthly loss since January 2016.

In Asia, stocks traded mixed Friday afternoon with Japan’s Nikkei 225 leading losses with a 0.82% dip during afternoon trade.

Domestic Market Performance

The TSE's main index TEDPIX lost 2,089.44 points or 0.93% on Saturday to end trading at 222.387.4.

About 5.3 billion shares valued at 13.14 trillion rials ($95.91 million) changed hands for the day.

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

Shahroud Sugar Factory was the biggest winner as its shares went up 8.93% to 7,742 rials.

Neyshabour Sugar Company incurred the biggest loss among all TSE-listed companies and went down 9.51% to 10,595 rials per share.

Mobarakeh Steel Company contributed the most to the benchmark's fall, followed by Iran National Copper Industry Company, Golgohar Mining and Industrial Complex, and Tamin Petroleum and Petrochemical Investment Company (TAPPICO).

Tejarat Bank gave the biggest boost to the benchmark index, followed by SAIPA, the Iranian second biggest automaker, and Bank Saderat Iran.

Iran Fara Bourse’s main index IFX lost 14.76 points or 0.53% to close Saturday trade at 2,785.44.

About 2.43 billion shares and securities valued at 8.39 trillion rials ($61.25 million) were traded at the over-the-counter exchange.