EghtesadOnline: Tehran stocks fell on Sunday as the Tehran Stock Exchange benchmark, TEDPIX, faltereds near the psychological level of 2 million points and chart patterns suggested correction in the prices of blue chips.
The market-cap weighted TEDPIX shed 6,776 points for the day, dropping by 0.35% to close the trading session at 1,946,134 points.
Sunday’s trade featured a massive sell-offs in a number of large-cap shares, mainly base metals, minerals and petrochemical companies, most of which were among the top-performers for weeks.
The sell-off particularly hit shares of two giant metal companies, Mobarakeh Steel Company and National Iranian Copper Industries Company, whose prices have shot up more than six-fold in three months guided by the dominant perception among the investors that the companies enjoy government support as it tries to sell stakes in these companies higher prices
Technical analysis and chart patterns, however, show that share prices in blue chips are overvalued and prone to a correction, conveying to investors to be exercise more caution.
The market cap of some these companies surpassed their international peers after incessant upsurge in share prices. As an example, the market cap of Mobarakeh Steel Company rose to above $20 billion compared to Antofagasta PLC with a market cap of less than $12 billion.
However, upbeat mood is expected to return in the coming days amid rising forex rates together with average daily market trading value staying north of 200 trillion rials ($870 million) plus significant cash inflow.
About 8.46 billion shares valued at 155.46 trillion rials ($758.34 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Behran Oil Company was the biggest winner as its shares went up 15.34% to 105,360 rials per share.
Iran Automobile Parts Industrial Group Company incurred the biggest loss among all TSE-listed companies and went down 5% to 10,270 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 Parsian Oil and Gas Development Company.
Social Security Investment Company gave the biggest boost to the benchmark index, followed by SAIPA, Tehran Oil Refining Company and Esfahan Oil Refining Company.
IFX Down 0.46%
Iran Fara Bourse main index, IFX, lost 92.2 points, or 0.46%, to close Sunday at 20,112.2.
About 2.77 billion securities valued at 58.43 trillion rials ($285.02m) were traded at the over-the-counter exchange for the day.
Esfahan Steel Company had the highest number of traded shares and trade value as 476.88 million of its shares worth 5.11 trillion rials ($24.94m) were traded.
Gohar Zamin Iron Ore Company, Saba Tamin Investment Company, Zagros Petrochemical Company and Hormozgan Steel Company had the most negative impact on IFX.
Marun Petrochemical Company gave the biggest boost to IFX, followed by Esfahan Steel Company, Shahid Tondgooyan Petrochemical Company and Day Bank.