The main index of Tehran Stock Exchange, TEDPIX, lost 1.9% shedding more than 36,876 points to close trading at 1,904,316 points.
Losers of the market were large-cap stocks, the so-called “benchmark makers”, which for weeks drove the market-cap weighted TEDPIX forward.
Decline in large-cap shares were visible in the 3.57% drop in the TSE-30 Index that tracks the performance of 30 companies with the highest market capitalization.
On the flip side, the equal-weighted index closed slightly above the flatline (0.04%), indicating that small-cap shares were gainers. The index gives the same weight to all shares irrespective of their market cap.
While the sell-off lasted almost for the day, renewed demand for two major listed companies in the after-hour trading session bode well – a sign that shares could gain some lost ground at next session on Saturday.
Referring to technical analysis and chart patterns, observers say a correction in prices is necessary for many blue chips as they surged dramatically in the past weeks.
The decline was also partly attributed to the TSE benchmark approaching 2 million points as a psychological resistance ahead, pushing investors to exercise caution as the TEDPIX struggles to break past the critical level.
TSE Trade
About 9.82 billion shares valued at 165.62 trillion rials ($807.93 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Machine Sazi Arak Company was the biggest winner as its shares went up 5% to 17,640 rials per share. Pars Khodro incurred the biggest loss among all TSE-listed companies and went down 16.04% to 18,210 rials per share.
Mobarakeh Steel Company contributed the most to the benchmark's fall, followed by Persian Gulf Petrochemical Industries Company, National Iranian Copper Industries Company and Esfahan Oil Refining Company.
Social Security Investment Company gave the biggest boost to the benchmark index, followed by Islamic Republic of Iran Shipping Lines Company, Mobile Telecommunication Company of Iran and SAIPA Automaker Company.
The Industry Index lost 34,716.71 points or 2.01% to register 1,691,709.97. The Free Float Index was down 46,546.22 points to hit 2,466,748.46. TSE 30 went down 3,394.27 points to settle at 91,635.33 while TSE 50 ended 2,259.06 points lower to finish at 74,981.77.
IFX Down 1.29%
Iran Fara Bourse main index, IFX, lost 258.39 points, or 1.29%, to close Wednesday at 19,723.66.
About 3.27 billion securities valued at 59.08 trillion rials ($288.23m) were traded at the over-the-counter exchange for the day.
Esfahan Steel Company had the highest number of traded shares and trade value as 687.71 million of its shares worth 7.82 trillion rials ($38.18m) were traded.
Marun Petrochemical Company, Gohar Zamin Iron Ore Company, Shahid Tondgooyan Petrochemical Company and Saba Tamin Investment Company had the most negative impact on IFX.
Day Bank gave the biggest boost to IFX, followed by Arya Sasol Polymer Company, Middle East Mines and Mineral Industries Development Holding Company and Iran Office Machines Industries Company.