Shares Retreat After Rally

EghtesadOnline: The benchmark of Tehran Stock Exchange, TEDPIX, lost 18,194 points on Monday drifting lower by 0.9% to retreat below the milestone 2,000,000 points seen on Sunday. It closed trading session at 1,993,330 points.

News ID: ۷۵۰۶۰۷

04 August 2020

While sell-off hit majority of shares, the downturn for large-cap stocks was deeper as seen in the 0.19% drop in equal-weighted index and 2% loss for the TSE-30 index.

The former tracks all stocks irrespective of market cap and the latter focuses on shares of 30 large companies with the TSE.

Monday’s trade featured frequent disruptions on the trading platform. The overloaded platform drew the ire of investors and once more spurred criticism that stock market authorities are doing little to improve the crammed platform.

TSE managing director, Ali Sahraee, announced plans to make “fundamental changes” on the platform including splitting trading hours into two sessions.

“Stocks will be traded in two separate sessions… these changes are temporary,” he was quoted as saying by Bourse24.ir.

Tehran’s stock market trading platform has been overwhelmed by the systemic increase in the number of investors and the ensuing deals conducted by the seemingly dilapidated platform.

Interruption in trade has now become a new norm with investors repeatedly complaining that their (buy and sell) orders are not processed by the system or done with delays, at times inflicting heavy losses.

TSE Trade

About 8.92 billion shares valued at 160.16 trillion rials ($728.02 million) changed hands at TSE on Monday.

Shiraz Petrochemical Company was the biggest winner as its shares went up 7.13% to 62,630 rials per share.

Bama Mining Company incurred the biggest loss among all TSE-listed companies and went down 5% to 304,170 rials per share.

National Iranian Copper Industries Company contributed the most to the benchmark's fall, followed by Iran Khodro Company, Mobarakeh Steel Company and Islamic Republic of Iran Shipping Lines Company.

Social Security Investment Company gave the biggest boost to the benchmark index, followed by Ghadir Investment Company, Tamin Petroleum and Petrochemical Investment Company and Civil Pension Fund Investment Company.

The Industry Index lost 17,266.12 points or 0.96% to register 1,774,940.77. The Free Float Index was down 25,704.91 points to hit 2,567,084.54.

TSE 30 went down 1,921.21 points to settle at 95,173.55 and the TSE 50 ended 951.57 points lower to finish at 78,604.43.

IFB Up 0.94%

Unlike the TSE benchmark retreat, Iran Fara Bourse main gauge closed higher. IFB’s main index IFX gained 196.35 points or 0.94% to close Monday at 21,014.88.

About 2.1 billion securities valued at 55.75 trillion rials ($253.42m) were traded at the junior equity market for the day.

Gohar Zamin Iron Ore Company, Esfahan Steel Company, Hormozgan Steel Company and Omid Taban Hour Energy Management Company had the most negative impact on IFX.

Marun Petrochemical Company gave the biggest boost to IFX, followed by Saba Tamin Investment Company, Shahid Tondgooyan Petrochemical Company and Middle East Mines and Mineral Industries Development Holding Company.