The main gauge of TSE shed more than 3,000 points of its earlier gains sending the TEDPIX 1% lower for the day.
Market analysts tended to ascribe the new trend largely to the emotional behavior and “blind imitation “of novice investors rather than fundamental factors.
Disheartened by poor returns on gold, foreign currency, auto and house markets, investors with little financial vision have turned to capital market as a safe haven to protect their assets in the past few months, Financial Tribune reported.
The capital market experienced dramatic surge thanks to fresh liquidity brought by newcomers, making the TSE climb a little less than 60% since the beginning of the current fiscal year (mid-March).
A market analyst likened the increasing presence of novice investors and the ensuing fresh liquidities to a double-edged sword as it would both lead to huge market growth in the initial phases and later nose-dive.
“Novice investors can easily be perturbed by negative news and as a result expose the market to big losses, ” Amir Mohammad Khadivi told Tejarat News.
Market Performance
The TSE's main index TEDPIX lost 3,052.12 points or 1.07% on Monday to end trading at 283,062.7.
About 4.40 billion shares valued at 17.24 trillion rials ($153.27 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
One and One Industrial Group (a major food company) was the biggest winner as its shares went up 10.06% to 75,903 rials per share.
Offset Press Incorporation incurred the biggest loss among all TSE-listed companies and went down 4.98% to 11,634 rials per share.
Mobarakeh Steel Company contributed the most to the benchmark's fall, followed by National Iranian Copper Industry Company, Telecommunication Company of Iran, Omid Investment Management Group Company and Golgohar Mining & Industrial Company.
Khorasan Steel Company gave the biggest boost to the benchmark index, followed by SAIPA Automaker Company, Esfahan Oil Refining Company, and Tabriz Oil Refining Company.
IFX Down 1.64%
Iran Fara Bourse main index IFX lost 62.07 points or 1.64% to close Monday trade at 3,714.8.
About 1.51 billion securities valued at 9.44 trillion rials ($83.97 million) were traded at the over-the-counter exchange for the day.
Esfahan Steel Company had the highest number of traded shares as 292.89 million of its shares worth 516.10 billion rials ($4.58 million) were traded.
Kerman Development Investment Company gave the biggest boost to IFX, followed by Bank Day, MAPNA Asaluyeh Power Generation Company and Middle East Mines & Mineral Industries Development Holding Company.
Marun Petrochemical Complex, Esfahan Steel Company and Damavand Power Generation Company had the most negative impact on IFX.