The benchmark of Tehran Stock Exchange, TEDPIX, shed 33,522 points and lost 2.27% to end trade at 1,445,970.
The large-scale sell-off dragged down the TSE-30 Index by more than 3%. The index tracks the performance of top 30 companies in terms of market share, including giant commodity firms.
Sell-side pressure in blue chips extended to small caps but with slightly smaller loss, as seen in the 1.7% fall in TSE’s equal-weighted index.
Perturbed retail traders took out 101 trillion rials ($360 million) from the market.
The sell-off was fueled by a bylaw issued by the Industry Ministry in which it set export duties for a range of goods. Investors fear the higher rates on exports will undermine profitability of listed companies.
More than 80% of the shares ended in negative territory on Tuesday comprising 388 tickers.
About 10.58 billion shares valued at 52.87 trillion rials ($195.8m) changed hands at TSE for the day. Negin Tabas Coal Company was the biggest winner as its shares went up 4.99% to 21,260 rials per share.
Calcimine Company incurred the biggest loss among all TSE-listed companies and went down 4.99% to 20,180 rials per share.
Mobarakeh Steel Company contributed the most to the benchmark's fall, followed by National Iranian Copper Industries Company, Social Security Investment Company and Persian Gulf Petrochemical Industries Company.
Pakshoo Industrial Group Company gave the biggest boost to the benchmark index followed by Mobin Energy Persian Gulf Company, Omid Investment Management Group Company and Lotus Parsian Investment Bank.
IFX Down 1.3%
Iran Fara Bourse main index, IFX, lost 260.17 points or 1.29 % to close Tuesday trade at 19,929. About 7.66 billion shares and securities worth 46.33 trillion rials ($171.6m) were traded at the junior exchange for the day.
Hormozgan Steel Company, Zagros Petrochemical Company, Arya Sasol Polymer Company and Saba Tamin Investment Company had the most negative impact on IFX.
Sepehr Saderat Financial Group Investment Company gave the biggest boost to IFX, followed by Pasargad Insurance Company, Marun Petrochemical Company and Damavand Power Generation Company.