Tehran Stocks Plunge on Pandemic Fears

EghtesadOnline: Tehran stocks took a drubbing Saturday unseen in recent history after the main gauge of Tehran Stock Exchange, TEDPIX, shed more than 18,000 points.

News ID: ۷۴۹۷۵۹

01 March 2020

The market cap-weighted TEDPIX lost 3.44% and retreated back to 505,818 points. This is while the equal-weighted index closed 2.13%, indicating smaller losses for small-cap companies. The latter index gives the same weight to all shares irrespective of their market cap, Financial Tribune reported.

Stocks took a historic drubbing in volume while in percentage terms the loss was at its highest since January 4.

The sell-off particularly hit giant commodity companies after global commodity prices fell in recent days, according to stock market analytical website Donyaye Bourse.

At the end of trading session at 12:30 p.m. local time, 231 symbol tickers, out of a total of 304, closed trade in the red and 101 symbols finished at lowest daily prices.

Tracking the stock markets trends across the globe, market indicators in Tehran collapsed after fears of coronavirus spread finally began to loom more than a week after its outbreak in Iran.

Coronavirus panic sent world share markets skidding again on Friday, compounding their worst crash since the 2008 global financial crisis and pushing the week’s wipeout in value terms to $5 trillion.

Saeed Eslami, member of the High Council of Securities and Exchange, blamed the downturn on the spread of coronavirus in Iran and the investors’ perceptions of the risks it poses to the economy.

Pointing to consecutive stock market rallies in recent weeks, Eslami said the market was susceptible to a correction, which was sparked by the growing fears from the pandemic.

According to Iran’s Health Ministry, corona infection cases surged to 600 on Saturday with 43 deaths.

TSE Performance

About 5.97 billion shares valued at 45.77 trillion rials ($305.15 million) changed hands at TSE on Saturday.

Pegah Khorasan Dairy Company was the biggest winner as its shares went up 6.33% to 58,461 rials per share.

Pars Switch Company (an electronic company) incurred the biggest loss among all TSE-listed companies and went down 8.06% to 72,336 rials per share.

Mobarakeh Steel Company contributed the most to the benchmark's fall, followed by Persian Gulf Petrochemical Industries Company, National Iranian Copper Industries Company and Pars Petrochemical Company.

Tehran Stock Exchange gave the biggest boost to the benchmark index, followed by Iran Mercantile Exchange, Ofogh Koorosh Chain Stores Company and Pars Oil Company.

IFX Plunges 3.1%

Main index of Iran Fara Bourse, IFX, lost 209.49 points, or 3.11%, to close Saturday trade at 6,534.95.

About 3.52 billion securities valued at 33.82 trillion rials ($225.47 million) were traded at the over-the-counter exchange for the day.

Marun Petrochemical Company, Gohar Zamin Iron Ore Company, Middle East Mines and Mineral Industries Development Holding Company and Esfahan Steel Company had the most negative impact on IFX.

Mehr Ayandegan Financial Development Group Company gave the biggest boost to IFX, followed by East Minoo Food Industrial Company, Kowsar Insurance Company and Isfahan Zinc Smelting Company.