EghtesadOnline: Steep rise in the price of shares of Social Security Investment Company, known locally as Shasta, pushed up the benchmark of Tehran Stock Exchange, TEDPIX, to new levels, threatening a temporary closure of the market.
TSE rallied to a historic level on Monday, making an unprecedented 4.9% gain by adding more than 80,972 points. This put the TEDPIX at 1,736,402 points.
This unseen rally was owed mainly to Shasta, the largest Iranian holding and the fourth in TSE in terms of market capitalization.
Following a notice of “disclosure of important information” by Shasta, its shares jumped 37% on Monday, alone adding more than 22,000 points to the TSE benchmark and pushing it above 5% for the day -- a threshold level if reached would force the stock market regulator to close the market for up to three sessions.
To avoid such an eventuality, the regulator first announced that it would cancel all Shasta deals. As expected, the decision met h shareholders’ objection forcing the regulator to push down the final price to 30%.
While daily price spread is set at ±5 for shares of listed companies, in rare occasions listed companies are allowed to trade their shares without price spread, such as when a company publishes critical information about its financial status or when the ticker symbol of a company opens after it holds an annual or extraordinary general meeting.
Shasta is the investment arm of the Social Security Organization (SSO), Iran’s largest pension fund and biggest insurance company providing medical insurance, paying pensions and voluntary coverage to the self-employed. Almost half of Iran’s 83 population is under the SSO umbrella.
The multidisciplinary company controls nine holdings operating in a wide range of sectors, including petroleum, petrochemicals, pharmaceuticals, cement, transportation, telecom, shipping and finance. These in turn manage 187subsidiaries.
About 6.47 billion shares valued at 138.44 trillion rials ($629.28 million) changed hands at TSE on Monday.
Iran Tractor Forging Company contributed the most to the benchmark's fall, followed by Tehran Cement Company, Kavir Tire Company and Pak Dairy Company.
Social Security Investment Company gave the biggest boost to the benchmark index, followed by Mobarakeh Steel Company, Persian Gulf Petrochemical Industries Company and National Iranian Copper Industries Company.
IFX Up 3.04%
Iran Fara Bourse main index, IFX, gained 524.8 points, or 3.04%, to close Monday trade at 17,810.58.
About 2.73 billion securities valued at 59.38 trillion rials ($269.94 million) were traded at the over-the-counter exchange for the day.
Pars Paper Industrial Group Company, Ghasem Iran Company, ASP Construction Company and Atrin Nakh Qom 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 Esfahan Steel Company, Saba Tamin Investment Company and Zagros Petrochemical Company.