Tehran Stocks Dive Amid Huge Selloff

EghtesadOnline: Tehran stock market was hit hard at the fifth session of bear market Sunday and plunged in what is said to be one of its worst days in history.

News ID: ۷۵۰۷۱۹

17 August 2020

The benchmark of Tehran Stock Exchange, TEDPIX, lost 89,693 points and fell 4.7% for the day to close trade at 1,813,574 points. This put TSE losses in five consecutive session at 12.7%.

Market data show retail investors fled selling 9.3 trillion rials ($42 million) in shares while more than 80 trillion rials ($365m) sale orders remained unprocessed.

Steep decline in the shares of Social Security Investment Company was the final nail in the coffin. SSIC, known as Shasta contributed the most to the benchmark, being the largest Iranian holding and the biggest in TSE in terms of market capitalization.

Following a notice of “disclosure of significant information” by Shasta, its shares dropped by 19% on Sunday, alone wiping off more than 22,000 points to the TSE benchmark.

While daily price spread is set at ±5 for shares of listed companies, in rare occasions companies are allowed to trade their shares without price spread, such as when a company publishes critical information about its financial status or when the ticker symbol of a company opens after it holds an annual or extraordinary general meeting.

Shasta lost close to 700 trillion rials ($3 billion) in one day.

The giant holding is the investment arm of the Social Security Organization (SSO), Iran’s largest pension fund and biggest insurance company providing medical insurance, paying pensions and voluntary coverage to the self-employed.

The multidisciplinary company controls nine holdings operating in a wide range of sectors, including petroleum, petrochemicals, pharmaceuticals, cement, transportation, telecom, shipping and finance. These in turn manage 187 subsidiaries.

TSE Trade

About 5.83 billion shares valued at 97.55 trillion rials ($443.44m) changed hands at TSE for the day.

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

Tamin Cement Investment Company gave the biggest boost to the benchmark index, followed by Zar Macaron Industrial Group Company, Pars Paper Industrial Group Company and Bahman Group Company.

IFX Down 2.85%

Iran Fara Bourse main index, IFX, lost 568.19 points, or 2.85%, to close Sunday trade at 19,341.46.

About 1.38 billion securities valued at 58.58 trillion rials ($266.27m) were traded at the junior equity market.

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

Arya Sasol Polymer Company gave the biggest boost to IFX, followed by Arfa Iron and Steel Company, Pouya Investment Company and Yazd Rubber Industries Complex.