Stock Market Pares Losses

EghtesadOnline: Tehran stocks extended a bullish trend Monday as a set of supportive measures buoyed up investor sentiments and partially restored their fading trust in the volatile market.

News ID: ۷۵۱۶۰۸

01 December 2020

The main gauge of Tehran Stock Exchange gained 38,656 points and notched up 2.71% to close trading session at 1,465,934 points.

Tehran’s share market has plunged close to 45% since mid-August after skyrocketing for four straight months.  The TEDPIX has pared about 15% of losses in the past three weeks thanks to measures taken by the stock market regulator to shore up demand.

Setting limits on trade of the so-called Justice Shares, giving banks more space to operate in the market, tapping financial resources of the sovereign wealth fund and penalties on market malefactors are some of the measures.

The regulator has banned retail trade of Justice Shares and allowed it to be offered in blocks to curb oversupply.

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. About 50 million Iranians own such shares.

In addition, the Central Securities Depository of Iran, the stock market clearing house, has allowed shareholders of Justice Shares to cancel their sell orders after the value of their share portfolio plunged during heavy downturn in stock market.  The CSDI website quoted Hossein Fahimi, managing director of the CSDI as saying that 248,000 shareholders have cancelled their orders so far.

The Capital Market Stabilization Fund -- a fund that helps resolve the credit crunch in the bourse -- said Sunday the National Development Fund of Iran, the sovereign wealth fund, has deposited 10 trillion rials ($40 million) with the CMSF to help lift the stock market.

Moreover, the Central Bank of Iran has agreed to increase the investment ceiling for bank-affiliated investment companies in the share market, a move that gives banks more leverage in the stock market.

Monday Trade

About 15.35 billion shares valued at 181.33 trillion rials ($725.35 million) changed hands at TSE on Monday.

The Civil Pension Fund Investment Company contributed the most to the benchmark's fall, followed by Informatics Services Corporation, Esfahan Sugar Company and Post Bank Iran.

Persian Gulf Petrochemical Industries Company gave the biggest boost to the benchmark index, followed by Mobarakeh Steel Company, Social Security Investment Company and Tamin Petroleum and Petrochemical Investment Company.

IFX Up 2.4%

Iran Fara Bourse main index, IFX, gained 425.62 points, or 2.39%, to close Monday trade at 18,261.74.

About 3.2 billion securities valued at 59.86 trillion rials ($239.45m) were traded at the junior equity exchange for the day.

Esfahan Steel Company had the highest number of traded shares as 274.37 million of its shares worth 1.41 trillion rials ($5.67m) changed hands.

Zagros Kowsar Power Generation Company, Taliseh Nemooneh Dairy Farm Company, Alborz Distribution Company and Ghiam Isfahan Agricultural and Livestock Company had the most negative impact on IFX.

Marun Petrochemical Company gave the biggest boost to IFX, followed by Pasargad Insurance Company, Saba Tamin Investment Company and Day Bank.