EghtesadOnline: Most commodity stocks in Tehran went into a tailspin on Tuesday as a government decision to intervene and control steel prices made the market jittery.
After sessions of bear market, stocks had rallied a session earlier only to be stopped in the follow-up to the seemingly controversial decision.
The main index of Tehran Stock Exchange, TEDPIX, lost 24,250 points, or 1.76%, paring all the gains made Monday. The TEDPIX is sensitive to the performance of large cap companies, which include the majority of steel, petrochemical and auto companies plus banks.
A large-scale sell-off followed after the Industries Minister Minister Alireza Razm-Hosseini said that his ministry wants steel products to be sold at the Iran Mercantile Exchange 30% lower than prices in international markets -- a move expected to hurt earnings of listed steel companies.
The selloff extended to a majority of blue chips in other sectors, dragging down the TSE-30 Index by 2.92%. The index tracks the performance of top 30 companies in terms of market cap.
The small caps, however, resisted the sell side pressure as shown in 0.63% growth in equal-weighted index.
About 9.96 billion shares valued at 106.7 trillion rials ($410.38 million) changed hands at TSE for the day. National Iranian Copper Industries Company contributed the most to the benchmark's fall, followed by Mobarakeh Steel Company, Social Security Investment Company and Persian Gulf Petrochemical Industries Company.
Ofogh Koorosh Chain Stores Company gave the biggest boost to the benchmark index followed by Bama Mining Company, Omid Investment Management Group Company and Sepid Farab Kavir Steel manufacturing Company.
IFB Down 0.75%
Iran Fara Bourse main index, IFX, lost 145.97 points or 0.75% to close Tuesday trade at 19,388.81. About 2.78 billion securities valued at 67.56 trillion rials ($259.87m) were traded at the junior exchange for the day.
Gohar Zamin Iron Ore Company, Zagros Petrochemical Company, Saba Tamin Investment Company and Shahid Tondgooyan Petrochemical Company had the most negative impact on IFX.
Kowsar Insurance Company gave the biggest boost to IFX, followed by Tukarail Company, Pasargad Oil Company and Zagros Kowsar Power Generation Company.
Caption: The main index of Tehran Stock Exchange, TEDPIX, lost 24,250 points, or 1.76%.