The main index of Tehran Stock Exchange, TEDPIX, gained 41,445 points to climb 2.58%. The benchmark closed at 1,650,027.
Recovery signs emerged in the late hours Monday after many institutional traders and investment funds were asked to inject money into the bourse and save it from an imminent collapse.
The buying, however, largely included shares of large-caps and the blue chips, which have the biggest impact on the market-cap weighted TEDPIX.
Many smaller companies closed session under sell-off pressure, though pressure eased in the later hours of trade as general sentiment began shifting away from the earlier caution.
With small-cap shares struggling to recover, the equal-weighted index closed flat. The index lost 342 points and dropped by 0.08%. Equal-weighted index gives the same weight to all shares irrespective of their size.
The relative rebound is owed to all-out support by main shareholders and measures taken by the regulator. TSE lost more than 22% during a relatively deep downturn that began on August 9.
Institutional investors injected thousands of billions of rials into the market. The biggest buying was on Monday with more than 72 trillion rials ($313 million) pumped into the bourse. They mainly bought blue chips, such as metal and mineral, refinery, bank and petrochemical shares.
With prices becoming attractive, retail traders inadvertently joined institutional traders moving from seller to buyer.
The main player for the day was the Social Security Investment Company, the largest holding and one of top three listed companies with highest market capitalization.
In a press release on Tuesday, the giant company, known by its Persian acronym Shasta, said it bought 12 trillion rials ($52 million) in shares of its subsidiaries, a move that “boosted the prospect of market recovery”, Fars News Agency reported.
TSE Trade
About 10.52 billion shares valued at 162.31 trillion rials ($721.4 m) changed hands at TSE for the day. HiWeb Company was the biggest winner as its shares went up 5.96% to 36,460 rials per share.
Leasing Iran Company incurred the biggest loss among all TSE-listed companies and went down 5.82% to 12,290 rials per share.
Khorasan Steel Company contributed the most to the benchmark's fall, followed by Islamic Republic of Iran Shipping Lines Company, Shahed Investment Company and Omid Investment Bank.
Persian Gulf Petrochemical Industries Company gave the biggest boost to the benchmark index, followed by Mobarakeh Steel Company, National Iranian Copper Industries Company and Social Security Investment Company.
IFX Up 1.69%
Iran Fara Bourse main index IFX gained 290.64 points or 1.69% to close Tuesday trade at 17,511.77. Almost 3.24 billion securities worth 88.23 trillion rials ($392.17m) were traded at the over-the-counter for the day.
Shahid Tondgooyan Petrochemical Company had the highest number of traded shares as 196.99 million of its shares worth 3.65 trillion rials ($16.23m) were traded.
Day Bank, Zagros Kowsar Power Generation Company, Mapna Asaluyeh Power Generation Company and Tabarok Industrial Group Company had the most negative impact on IFX.
Gohar Zamin Iron Ore Company gave the biggest boost to IFX, followed by Arya Sasol Polymer Company, Saba Tamin Investment Company and Pasargad Insurance Company.