TSE which had its record high in early autumn has now erased all its gains. The fall from grace began with petrochemical stocks and then spread like wildfire as global commodity prices tank.
Although the bearish market for commodities including oil is still cited as the main reason for investor pessimism, a level of overreaction by investors is also said to have exacerbated the market performance.
Oil prices in the last week struggled to recover after a steep sell-off pushed them to their lowest point of the year. Brent crude fell below $58 a barrel. Various factors, including a lingering glut in supplies and American pressure on Saudi Arabia to keep energy costs low, have resulted in oil prices falling by a third since early October, Financial Tribune reported.
Market Indexes
Tehran Stock Exchange’s main index lost 3,918.33 points or 2.39% on Saturday to end trading at 159,853.8
About 2 billion shares valued at 8 trillion rials ($70.19 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Nasir Machine Industrial Group and Derakshan Tehran Production and Industrial Company were the biggest winners as their shares went up 4.99% to 3,113 rials and 5,263 rials per share, respectively. According to its website, Nasir Machine is the largest producer of crankshafts and camshafts in the Middle East.
Zamyad Co. (a commercial vehicle manufacturing company owned by the SAIPA Group) incurred the biggest loss among all TSE-listed companies and went down 8.83% to 939 rials per share.
Mobarakeh Steel Company -- which boasts the title of the largest steelmaker in the MENA region -- contributed the most to the benchmark's fall, followed by Mines and Metals Development Investment Company (MMDIC) and Tamin Petroleum & Petrochemical Co.
Khorasan SteelCompany- the largest industrial plant in Eastern Iran – gave the biggest boost to the benchmark index, followed by Mobile Telecommunication Company of Iran (MCI) -- also known under its brand name Hamrah-e-Aval and Telecommunication Company of Iran (TCI).
The Price Index lost 1,141.09 points to close at 46,552.9. First Market Index was down 3,151.93 points to post 117, 2401.1.
The Second Market Index decreased by 6,517.16 points to reach 320,985.8. Industry Index went down by 3,437.12 points to register 145,253.9.
The Free Float Index was down 4,718.57 points to hit 170,244.34.
The TSE 30 went down 230.41 point to settle at 7,859.1 and the TSE 50 ended 176.38 points lower to finish at 6,953.9.
IFX Down 3.37%
Iran Fara Bourse’s main index IFX lost 59.87 points or 3.37% to close Saturday trade at 1,717.61.
About 1.93 billion securities valued at $55.14 million were traded at the over-the-counter exchange for the day.
Bank Day had the highest number of traded shares as 71.625 million of its shares worth $6.92 million changed hands.
Iran Office Machines Industries (Maadiran Group) and Kish Parsian Electronic Commerce (KIPEC) registered the highest value increase.
Iran Cultural Heritage and Tourism Investment Group (SEMEGA), TukaRail Holding Corporation, Asaluyeh Power Plant and Middle East Mines & Mineral Industries Development Holding Company's (MIDHCO) suffered the biggest decline.
Marun Petrochemical Co, Zagros petrochemical Co, and Gohar Zamin Iron Ore Company had the most negative impact on IFX.