Tehran Stocks Pare Losses After Sharp Plunge

EghtesadOnline: Tehran Stock Exchange eked out a 1.9% gain on Sunday and soared close to 9,800 points to pare some of the losses a session earlier.

News ID: ۷۸۵۴۵۳

07 March 2020

Stocks recovered from a rare nosedive that wiped more than 18,000 points off the TSE’s benchmark, TEDPIX, after market reacted to coronavirus outbreak in Iran, Financial Tribune reported.

The short-lived correction phase soon gave place to a sharp rally in share prices as optimisms toward market outlook outweighed pandemic fears.

The optimism was driven by fresh upsurge in currency prices, which directly impact export-oriented listed companies and increase inflationary expectations for whole range of shares.

Major currencies resumed a bullish trend on Sunday in Tehran’s open market after a brief downturn a day earlier. The US dollar changed hands for 153,000 rials for day after losing about 5.5% a session earlier.

Soaring currency prices coupled with continuing inflow of fresh liquidity boosted demand in stocks and eased jitters over risks of the deadly coronavirus.

About 6.27 billion shares valued at 45.05 trillion rials ($294.4 million) changed hands at TSE on Sunday.

Shargh Cement Company was the biggest winner as its shares went up 19.54% to 6,026 rials per share.

Khavar Spring Manufacturer Company incurred the biggest loss among all TSE-listed companies and went down 6.87% to 20,143 rials per share.

Esfahan Oil Refining Company contributed the most to the benchmark's fall, followed by Khorasan Steel Company, Islamic Republic of Iran Shipping Lines Company and Tehran Oil Refining Company.

Persian Gulf Petrochemical Industries Company gave the biggest boost to the benchmark index, followed by Mobile Telecommunication Company of Iran, Omid Investment Management Group Company and Telecommunication Company of Iran.

Iran Fara Bourse main index, IFX, gained 140.09 points or 2.14% to close Sunday trade at 6,675.04.

About 2.88 billion securities valued at 27.94 trillion rials ($182.6 million) were traded at the over-the-counter exchange for the day.