Tehran Stock Market Pauses Near Record Levels

EghtesadOnline: Investors’ caution to save earlier gains kept Tehran stocks from making further headway on Sunday after conquering the historic peak of 300,000 points a day earlier.

News ID: ۷۴۸۴۵۰

16 September 2019

The main gauge of Teheran Stock Exchange shed more than 2,000 points, or 0.68%, for the day, bucking a bullish trend that dominated the bourse almost throughout the calendar month that started on August 23.

As seen in previous trading sessions, auto and bank stocks were still at the top with major commodity stocks suffering sell-off pressure.

Market analysts believe that the market is governed more by the parameters of emotion than reasoning and technical analysis, thanks to the foray of a large number of novice investors in the absence of strong parallel markets, Financial Tribune reported.

Changes in the ownership of stocks from portfolios of legal entities to natural ones in recent weeks is a clear sign of retail investors’ dominant role in the market, according to the capital market analytical website Donyaye Bourse.

At least one group of investors was apparently perturbed by the prospect of intensifying tensions and possible reaction of global markets to the news about the drone attacks on key oil production facilities in Saudi Arabia.

The attacks sent Saudi stock market 2.3% lower at Sunday’s open according to Reuters.  Persian Gulf Arab markets also reacted negatively to the attacks, with Kuwait’s premier index .BKP down 0.4% and Dubai stocks .DFMGI falling 0.5%.

Market Performance

The TSE's main index TEDPIX lost 2,064.39 points or 0.68% on Sunday to end trading at 302,395.7.

About 6.7 billion shares valued at 23.14 trillion rials ($204.80 million) changed hands at TSE for the day.

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

Zahravi Pharmaceutical Company was the biggest winner as its shares went up 8.82% to 6,677 rials per share.

Alumrod Company (aluminum rod manufacturer) incurred the biggest loss among all TSE-listed companies and went down 5% to 25,129 rials per share.

MAPNA Group contributed the most to the benchmark's fall, followed by Persian Gulf Petrochemical Industries Company, Golgohar Mining and Industrial Company, Chadormalu Mining and Industrial Company and National Iranian Copper Industries Company.

Iran Khodro Company (IKCO) gave the biggest boost to the benchmark index, followed by Parsian Bank, Bank Saderat Iran, and Bandar Abbas Oil Refining Company.

The Price Index lost 554.76 points, or 0.68% to close at 81,275.4.

The First Market Index was down 1,711.19 points, or 0.77% to post 220,577.8. Second Market Index was down 3,247.51 points, or 0.53% to reach 611,334.5.

The Industry Index went down by 2,277.32 points or 0.83% to register 271,454.7. The Free Float Index was down 1,674.46 points to hit 346,518.09.

TSE 30 went down 90.01 points to settle at 12,973.4 and the TSE 50 ended 106.79 points lower to finish at 11,844.6.

IFX Up 0.29%

Iran Fara Bourse main index IFX gained 11.43 points or 0.29% to close Sunday trade at 3,930.11.

About 1.04 billion securities valued at 8.66 trillion rials ($76.70 million) were traded at the over-the-counter exchange for the day.

Esfahan Steel Company had the highest number of traded shares and trade value as 339.80 million of its shares worth 640.34 billion rials ($5.66 million) were traded.

Middle East Mines & Mineral Industries Development Holding Company, Zagros Petrochemical Company and Goharzamin Iron Ore Company had the most negative impact on IFX.

Marun Petrochemical Complex gave the biggest boost to IFX, followed by Esfahan Steel Company, Lavan Oil Refining Company and Arfa Iron and Steel Company.