The benchmark TEDPIX index plunged 3,175.02 points to end at 178,819.3 while Iran Fara Bourse’s main index IFX lost 45.52 points or 2.33% to close Saturday trade at 1,911.63.
According to analysts, the main reason behind the selloff was the gain for the national currency, which has been gaining in the past week, reversing the trend of the past six months during which it lost nearly 70% of its value.
On Thursday, which marks the last trading day of the week for gold and currency markets, the US dollar was traded for 127,000 rials, down from 144,000 rials on Saturday, according to Financial Tribune.
On Saturday, the rial continued its gains to be quoted at below 120,000 rials to the dollar before losing ground later. By the afternoon the dollar was traded for 124,000 rials on the open market.
Another reason for the selloff was said to be Saturday's initial public offering of Gohar Zamin iron Ore Company on the junior market Farabourse and investors' enthusiasm to raise money for buying the shares of the biggest iron ore mine in the Middle East.
Oil prices pulled back sharply on Friday, after earlier rising on expectations that OPEC and its allies would agree to cut output next month.
Prices remain under pressure on concerns that the global market is oversupplied, with benchmarks posting a sixth straight weekly loss. An oil market sell-off has shaved more than a fifth off the Brent crude benchmark and slashed the price of US crude by 25 % since early October.
The stock market is operating with the threat of US sanctions hanging over its head and investors keeping an eye on the stocks that could be affected by those sanctions.
The administration of US President Donald Trump launched the second wave of sanctions against Iran from November 5 in which a ban on oil exports is a primary objective.
US officials claim that the tough restrictions are meant to bring down Iran’s oil exports to zero. However, officials in Tehran have dismissed the possibility of that happening on the grounds that the crude market would not be able to sustain a complete ban on Iranian supplies.
Market Indexes
Tehran Stock Exchange’s main index lost 3,175.02 points or 1.74% on Saturday to end trading at 178,819.3.
About 2.04 billion shares valued at $73.88 million changed hands at TSE for the day.
Trading at TSE and Iran Fara Bourse starts on Saturday and ends Wednesday. Royal Board Co. was the biggest winner as its shares went up 7.1% to 9,854 rials per share.
Damavand Mining Company incurred the biggest loss among all TSE-listed companies and went down 4.98% to 31,413 rials per share.
Mobarakeh Steel Co. contributed the most to the benchmark's fall, followed by Golgohar Mining and Industrial Complex, and Bandar Abbas Oil Refining Co.
Omid Investment Group gave the biggest boost to the benchmark index, followed by Asan Pardakht Persian, and Iran Zinc Mines Development.
The Price Index lost 924.60 points to close at 52,078.6.
The First Market Index was down 2,393.31 points to post 132,855.7. Second Market Index decreased by 6,058.40 points to reach 350,804.6.
The Industry Index went down by 2,826.73 points to register 162,755.3. Free Float Index was down 3,255.98 points to hit 190,887.20.
The TSE 30 went down 184.81 point to settle at 8,976.2 and the TSE 50 ended 155.49 points lower to finish at 7,875.2.
IFX Down 2.33%
Iran Fara Bourse’s main index IFX lost 45.52 points or 2.33% to close Saturday trade at 1,911.63.
About 1.34 billion securities valued at $64.42 million were traded at the over-the-counter exchange for the day.
Goharzamin Iron Ore Co. had the highest number of traded shares and trade value as 615 million of its shares worth $33.72 million were traded.
Shirvan Sugar Co., Tuka Paint, and Ghaed Basir Petrochemical Co. registered the highest value increase.
Ballast Co., Caspian Tamin Pharmaceutical Company, and Alvand housing Investment Co. suffered the biggest decline.
Marun Petrochemical Co, Zagros Petrochemical Co., and Esfahan Steel Co. had the most negative impact on IFX.