Stocks Lose After Early Gains

EghtesadOnline: Shares in Tehran entered a choppy market on Sunday, rising more than 20,000 points in the early hours of trade before paring much of the gains.

News ID: ۷۵۱۴۸۸

16 November 2020

The main index of Tehran Stock Exchange, TEDPIX, closed the session 9,707 points higher, gaining 0.8% to stand at 1,257,356 points.

As in recent sessions, the value of retail trade surged remarkably on Sunday, reaching 141.94 trillion rials ($545 million), more than 90% higher compared to Saturday.

Investors panicked as share offers increased in some giant listed companies in the middle of the trading day as they rushed for the exits fearing further decline in prices in the coming days.

Institutional traders are blamed for upsetting the supply and demand in the market by oversupplying shares. Some observers link the oversupply to trade in the so-called Justice Shares.

Justice Shares are shares of government-owned companies that were given free to the six lowest income deciles almost fifteen years ago. Shareholders were not allowed to sell the shares until last May. An estimated 50 million Iranians own such shares.

Struggling hard to revive the unstable share market, the Central Securities Depository of Iran said Sunday shareholders of Justice Shares can cancel their sale orders.

Citing stock market authorities, news outlets reported that offering Justice Shares has been suspended until further notice.

TSE Trade

About 17.06 billion shares valued at 125.88 trillion rials ($484.18 million) changed hands at TSE for the day.

Sepahan Oil Company was the biggest winner as its shares went up 8.9% to 19,700 rials per share.

Tamin Petroleum and Petrochemical Investment Company incurred the biggest loss among all TSE-listed companies and went down 8.42% to 14,140 rials per share.

Tamin Petroleum and Petrochemical Investment Company contributed the most to the benchmark's fall, followed by Persian Gulf Petrochemical Industries Company, Mines and Metals Development Investment Company.

National Iranian Copper Industries Company gave the biggest boost to the benchmark index, followed by Mobarakeh Steel Company, Ghadir Investment Company and Tehran Oil Refining Company.

The Industry Index was up 7,564.27 points or 0.69% to register 1,107,822.02. The Free Float Index was up 16,833.14 points to hit 1,703,013.54.

TSE 30 went up 1,133.39 points to settle at 62,075.06 and the TSE 50 ended 499.73 points higher to finish at 48,642.86.

IFX Up 0.28%

Iran Fara Bourse main index, IFX, gained 44.65 points or 0.28% to close Sunday trade at 16,039.19.

About 2.54 billion securities valued at 44.41 trillion rials ($170.81m) were traded at the over-the-counter exchange for the day.

Esfahan Steel Company had the highest number of traded shares as 307.03 million of its shares worth 1.37 trillion rials ($5.26m) were traded.

Sepehr Saderat Financial Group Investment Company, Damavand Power Generation Company, Minoo Industrial Group Company and Gilan Electric Power Development Company had the most negative impact on IFX.

Pasargad Insurance Company gave the biggest boost to IFX, followed by Saba Tamin Investment Company, Arfa Iron and Steel Company and Shahid Tondgooyan Petrochemical Company.