The downturn is linked to the government’s abrupt decision to cancel previously announced plans to offer its shares in four refineries via an exchange-traded fund.
The announcement created nervousness in the market and sparked massive sell-off in majority of ticker symbols because investors interpreted the move as a sign that the government may no longer support the bourse.
Market data show 2,950 trillion rials ($13 billion) were wiped out of the market during two sessions of bear market, raising concerns about huge capital outflow.
Fearing further market collapse, the Economy Minstry revoked its Monday’s announcement and said it will stick with the plan to offer shares via ETF. The new announcement is expected to boost sentiment in coming days.
Anticipating price rises, large groups of investors had bought shares of companies in which the government has stakes and planned to sell via ETFs.
TSE Trade
About 7.61 billion shares valued at 120.15 trillion rials ($546.13 million) changed hands at TSE on Tuesday
Bandar Abbas Oil Refining Company incurred the biggest loss among all TSE-listed companies and went down 5% to 51,880 rials per share.
Persian Gulf Petrochemical Industries Company contributed the most to the benchmark's fall, followed by the National Iranian Copper Industries Company, Mobarakeh Steel Company and Esfahan Oil Refining Company.
Telecommunication Company of Iran gave the biggest boost to the benchmark index, followed by Mobile Telecommunication Company of Iran, Shahed Investment Company and Tamin Cement Investment Company.
IFX Down 2.47%
Iran Fara Bourse main index IFX lost 522.78 points or 2.47% to close Tuesday trade at 20,655.27. About 1.71 billion securities valued at 78.7 trillion rials ($357.72 million) were traded at the IFB for the day.
Gohar Zamin Iron Ore Company, Shahid Tondgooyan Petrochemical Company, Esfahan Steel Company and Saba Tamin Investment Company had the most negative impact on IFX.
Pasargad Insurance Company gave the biggest boost to IFX, followed by Zagros Kowsar Power Generation Company, Vitana Corporation and Tukarail Company.