EghtesadOnline: Stocks tumbled in Tehran at the close of trading week Wednesday as investors continued to shun shares of major listed companies and turned increasingly to small-cap stocks.
The main gauge of Tehran Stock Exchange, TEDPIX, lost 16,151 points for the day, down 1.61%, to close trading at 985,972 points.
TSE’s benchmark is a market capitalization-oriented index that is highly impacted by the performance of big listed companies.
While TEDPIX was in the red, the equal-weighted index closed in positive territory- at 0.24% -- as investors embraced small-cap shares largely in pharmaceuticals, food, transportation and tire companies.
Investors rush to sell shares in refineries, petrochemical, metal and bank groups pushed the TSE-30 index down to 3.21%. The index tracks the performance of 30 companies with the highest market cap.
Sell-off in big shares started at the later hours of Tuesday as investors were apparently disappointed with gloomy financial reports of listed companies.
The sell-off accelerated on Wednesday as investors poised to sell shares in newly listed companies to procure cash for buying government-backed exchange-traded fund.
Subscription started on May 3 and the government had announced May 20 as the deadline for subscribing to ETFs that hold government shares in three banks and two insurance companies.
The subscription is part of a broader government divestiture plan to downsize, plug deficit holes and reduce its oversized role in the economy.
The Ministry of Economy announced that it would extend the deadline until Thursday as “subscription was well-received by investors”
About 9.87 billion shares valued at 115.45 trillion rials ($663.54 million) changed hands at TSE on Wednesday.
Jam Polypropylene Company was the biggest winner as its shares went up 9.31% to 61,531 rials per share.
Leasing Iran Company incurred the biggest loss among all TSE-listed companies and went down 7.92% to 21,231 rials per share.
Persian Gulf Petrochemical Industries Company contributed the most to the benchmark's fall, followed by Mobarakeh Steel Company, National Iranian Copper Industries Company and Golgohar Mining and Industrial Company.
Telecommunication Company of Iran gave the biggest boost to the benchmark index, followed by Islamic Republic of Iran Shipping Lines Company, Iran Khodro and SAIPA auto company.
The Price Index lost 4,082.99 points, or 1.53% to close at 262,204.5. The First Market Index went down 14,933.37 points, or 2.01% to post 727,318.81.
The Second Market Index was down 15,721.54 points, or 0.79% to reach 1,972,836.53. The Industry Index lost 12,019.92 points or 1.37% to register 864,067.69 and the Free Float Index was down 19,538.76 points to hit 1,253,178.88.
TSE 30 went down 1,343.22 points to settle at 40,479.58 and the TSE 50 ended 973.57 points lower to finish at 36,657.98.
IFX Down 1.58%
Iran Fara Bourse main index IFX lost 178.85 points or 1.58% to close Wednesday trade at 11,112.97.
About 3.34 billion securities valued at 47.9 trillion rials ($275.3 million) were traded at the over-the-counter exchange.
Esfahan Steel Company had the highest number of traded shares as 400.4 million of its shares worth 2.4 trillion rials ($13.8 million) were traded.
Saba Tamin Investment Company, Esfahan Steel Company, Shahid Tondgooyan Petrochemical Company and Zagros Petrochemical Company had the most negative impact on IFX.
Middle East Mines and Mineral Industries Development Holding Company gave the biggest boost to IFX, followed by Day Bank, Omid Taban Hour Energy Management Company and Marun Petrochemical Company.