Sell-Off Pressure Rattles Bourse

EghtesadOnline: Relentless sell-off pressure hit the Tehran stock market on Sunday as retail investors struggled to get their money back while institutional buyers continued to boost demand.

News ID: ۷۵۰۹۰۸

07 September 2020

Despite the negative climate overwhelming the trading floor, the main index of Tehran Stock Exchange, TEDPIX, gained 5,847 points to close 0.36% higher.

TEDPIX climbed by 22,000 points in early trading but pared most of the gains later as sell-side pressure kept mounting.

Many large-cap shares were supported by institutional traders, but smaller shares were hit hard by the sell-off side, causing the equal-weighted index TSE to drop 0.8%.

After solid gains in the first four months of the current fiscal year (March-July), the TSE dived deep into the red and lost 25% of past gains since August.

With market downturn becoming a norm and fears rising over possible capital outflow, the stock market regulator met with institutional buyers and market markers last week to find ways to boost the sagging market.

Market makers have been told to intervene in the market and are expected to improve the liquidity of shares.   They essentially act as wholesalers buying and selling securities to balance the market.

TSE Trade

About 10 billion shares valued at 115.93 trillion rials ($504.06 million) changed hands at TSE for the day.

Neyshabour Sugar Company was the biggest winner as its shares went up 5% to 108,180 rials per share.

Noosh Mazandaran Company incurred the biggest loss among all TSE-listed companies and went down 5% to 97,300 rials per share.

Social Security Investment Company contributed the most to the benchmark's fall, followed by Islamic Republic of Iran Shipping Lines Company, MAPNA Group and Iran Khodro Company.

National Iranian Copper Industries Company gave the biggest boost to the benchmark index, followed by Persian Gulf Petrochemical Industries Company, Mobarakeh Steel Company and Golgohar Mining and Industrial Company.

IFX Up 0.28%

Iran Fara Bourse main index, IFX, gained 48.68 points, or 0.28%, to close Sunday trade at 17,339.08.

About 1.75 billion securities valued at 55.33 trillion rials ($240.57m) were traded at the junior equity exchange for the day.

Esfahan Steel Company had the highest number of traded shares as 383.48 million of its shares worth 2.58 trillion rials ($11.23m) were traded.

Day Bank, Shahid Tondgooyan Petrochemical Company, Arfa Iron and Steel Company and Melal Credit Institution had the most negative impact on IFX.

Gohar Zamin Iron Ore Company gave the biggest boost to IFX, followed by Zagros Petrochemical Company, Arya Sasol Polymer Company and Hormozgan Steel Company.