Stock Trade in Distress

EghtesadOnline: Stocks in major listed companies closed Sunday’s session under heavy sell-off pressure amid mounting uncertainty among investors about what lies ahead.

News ID: ۷۵۱۲۹۵

19 October 2020

The main index of Tehran Stock Exchange, TEDPIX, lost more than 3% and shed 47,171 points. The benchmark closed trade at 1,514,244 points -- the lowest since June 29.

Large-cap stocks in major metal, refinery, banks, auto and petrochemical companies were hit hard as shown by the more than 4.1% decline in the TSE-30 Index. The index tracks performance of 30 TSE-listed companies with the highest market capitalization.

The equal-weighted index, which gives the same weight to all stocks irrespective of their market capitalization, was down 1.3%.

Out of 600 ticker symbols in both TSE and the junior equity market, Iran Fara Bourse, more than 400 were traded at the lowest daily prices.

Sellers were mainly retailers while institutional buyers struggled to boost demand. Donyaye Bourse website reported that nervous retail traders moved 13.5 trillion rials out of the market.

Tehran’s once booming share market has gone through a deep correction phase since mid-August after solid gains in the first four months of the current fiscal year (March-July). Since then stock market authorities have tried but failed to save the collapsing TEDPIX.

Among other things, they passed rules that made market making for listed companies compulsory to help boost the liquidity of shares. Banks and credit institutions have been allowed to invest in stocks while listed companies are obliged to use financial instruments to lift the market out of the slumber.

Furthermore, the National Development Fund of Iran, the sovereign wealth fund, is mandated to invest 1% of its annual revenue in the Capital Market Stabilization Fund, a body created in 2017 to help resolve the credit crunch in the bourse.

TSE Trade

About 4.19 billion shares valued at 62.68 trillion rials ($195.9 million) changed hands at TSE on Sunday.

Yazd Province Investment Company was the biggest winner as its shares went up 27% to 1,270 rials per share.

Kowsar Pharmaceutical Company incurred the biggest loss among all TSE-listed companies and went down 11.15% to 21,670 rials per share.

Mobarakeh Steel Company contributed the most to the benchmark's fall, followed by National Iranian Copper Industries Company, Tamin Petroleum and Petrochemical Investment Company and Golgohar Mining and Industrial Company.

Pakshoo Industrial Group Company gave the biggest boost to the benchmark index followed by Bama Mining Company, Behsaz Kashaneh Tehran Company and Padideh Shimi Gharn Company.

The Industry Index lost 41,732.87 points or 3.03% to register 1,337,445.74. The Free Float Index was down 60,362.65 points to hit 2,035,853.94. TSE 30 went down 3,345.22 points to settle at 77,377.22 and the TSE 50 ended 2,160.35 points lower to finish at 59,856.34.

IFX Down 1.96%

Iran Fara Bourse main index, IFX, lost 353.95 points, or 1.96%, to close Sunday trade at 17,721.07.

About 1.58 billion shares worth 34.89 trillion rials ($109.05m) were traded at the junior exchange for the day.

Arya Sasol Polymer Company, Gohar Zamin Iron Ore Company, Zagros Petrochemical Company and Saba Tamin Investment Company had the most negative impact on IFX.

Omid Taban Hour Energy Management Company gave the biggest boost to IFX, followed by the Middle East Mines and Mineral Industries Development Holding Company, Kowsar Insurance Company and Vitana Company.