Grim Outlook as Stocks Plummet

EghtesadOnline: Sell-off continued battering Iran’s share market on Tuesday with the benchmark of the Tehran Stock Exchange, TEDPIX, having lost more than 10% in the past three sessions.

News ID: ۷۵۱۳۰۸

21 October 2020

TEDPIX extended the losing streak by shedding more than 42,970 points -- down another 3% to close the session at 1,419,312 points.

More than 83% of ticker symbols closed the session in red, including 271 tickers at the TSE and 124 in the junior equity market, Iran Fara Bourse.

The value of capital outflow by retail traders was 5.76 trillion rials ($21 million) while 57.6 trillion rials ($212m) worth of sales orders remained unprocessed due to lack of buyers, according to eghtesadnews.

The equal weighted index, a better indicator of performance of small-cap stocks, was down 1.42%.

Steep declines in prices of blue chips pushed down the TSE-30 Index 4.2%. The index tracks the performance of 30 giant companies with the highest market capitalization.

The struggling stock market in the Iranian capital has gone through a deep correction phase since mid-August after making solid gains in the first four months of the current fiscal year (mid-March to mid-July).

Stock market authorities have resorted to several measures to prop up the market, namely by assigning market makers to help boost the liquidity of shares, allowing banks and credit institutions to invest in stocks and announcing rules aimed at limiting large-scale offering of shares. All such measures have been in vain so far.

On Tuesday an estimated four billion shares worth 43.89 trillion rials changed hands at the TSE.

Two giant metal companies, namely Mobarakeh Steel Company and National Iranian Copper Industry Company had the most negative impact on TEDPIX. This was followed by Ta'min Petroleum and Petrochemical Investment Company and Isfahan Oil Refinery Company.

The main index of Iran Fara Bourse, IFX, lost 266.79 points and dropped by 1.54%, closing the session at 17,008 points.

More than 1.13 billion shares worth 21.92 trillion rials changed hands at the junior equity market for the day.

The IFX drop was driven mainly by sell-off in shares of Esfahan Steel Company, Shahid Tondgooyan Petrochemical Company and Sepehr Saderat Financial Group Company.