Tehran Stocks Extend Losses
EghtesadOnline: Opening in positive territory in the early hours, Tehran stocks reversed course in the mid-trading session and finally ended trade in the red on Wednesday.
The main index of Tehran Stock Exchange, TEDPIX, gained almost 40,000 points in the first hours of trading but later retreated and ended 24,298 points lower than the previous session’s close as sell-off pressure mounted.
The TEDPIX lost 1.22% for the day and moved further away from the critical 2 million points to close trading session at 1,975,544 points.
Investors expected a bull market on Wednesday as sentiments were boosted after the Oil Ministry agreed on Tuesday to set up an exchange-traded fund for ceding government shares, ending uncertainties that surrounded stock market for two days.
Market observers, however, ascribe the downturn on Wednesday to large-scale offer of shares, mostly in giant listed companies, by institutional traders and main shareholders.
The sell-off in large-cap symbols soon extended to a broad range of shares across the board.
About 11.57 billion shares valued at 179.1 trillion rials ($814.17 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
One and One Food Industry Company was the biggest winner as its shares went up 5% to 333,080 rials per share. Nirou Chlor Company incurred the biggest loss among all TSE-listed companies and went down 11.06% to 47,710 rials per share.
Social Security Investment Company contributed the most to the benchmark's fall, followed by Persian Gulf Petrochemical Industries Company, Ghadir Investment Company and National Iranian Copper Industries Company.
Mobarakeh Steel Company gave the biggest boost to the benchmark index, followed by Telecommunication Company of Iran, Parsian Bank and Khouzestan Steel Company.
IFX Down 0.84%
Iran Fara Bourse main index IFX lost 174.01 points, or 0.84%, to close Wednesday trade at 20,481.26.
About 2.37 billion securities valued at 55.25 trillion rials ($251.15m) were traded at the junior equity market.
Esfahan Steel Company had the highest number of traded shares as 196.27 million of its shares worth 1.84 trillion rials ($8.38m) were traded.
Marun Petrochemical Company, Gohar Zamin Iron Ore Company, Saba Tamin Investment Company and Esfahan Steel Company had the most negative impact on IFX.
Arya Sasol Polymer Company gave the biggest boost to IFX, followed by Pasargad Insurance Company, Middle East Mines and Mineral Industries Development Holding Company and Arfa Iron and Steel Company.