EghtesadOnline: Tehran stocks slumped again on Sunday for the third session in a row as the correction phase lingers under panic selling by retail investors.
The benchmark of Tehran Stock Exchange, TEDPIX, shed 29,741 points losing 2.05% to close trade at 1,420,484.
The market went into a correction phase after the TEDPIX reached 1.56 million points last week. The downswing is linked to a combination of factors, most notably concerns about the Central Bank of Iran’s decision to raise interbank rates and worries about the decline in international commodity prices, according to Homayoon Darabi, a market expert.
In a talk with IRIB, Darabi pointed to investors’ aversion to trade, saying that they are waiting for listed companies’ half-yearly financial reports next week.
The downturn is also attributed to the growing initial public offerings, all held within a week, which has reportedly drained market liquidity and triggered the sell-off. Six companies have debuted in 10 days.
Value of retail trade continued to decline on Sunday as sales orders remained unprocessed amid lack of buyers. Value of retail trade dropped to 60 trillion rials ($222 million) on Sunday while the figure hit 110 trillion rials per day in the thriving market two weeks ago.
About 7.27 billion shares valued at 54.99 trillion rials ($203.6m) changed hands at TSE for the day.
Iran Lent Company was the biggest winner as its shares went up 5% to 93,880 rials per share.
Opal Kani Pars Mining and Processing Company incurred the biggest loss among all TSE-listed companies and went down 5.51% to 20,940 rials per share.
The Persian Gulf Petrochemical Industries Company contributed the most to the benchmark's fall, followed by Mobarakeh Steel Company, National Iranian Copper Industries Company and Chadormalu Mining And Industrial Company.
Sabzevar Pars Steel Complex gave the biggest boost to the benchmark index followed by Sobhan Pharmaceutical Group Company, Alborz Insurance Company and Iran Tractor Forging Company.
IFX Down 1.5%
Iran Fara Bourse main index, IFX, lost 321.66 points or 1.5% to close Sunday trade at 21,146.6.
About 3.08 billion securities valued at 144.65 trillion rials ($535.74m) were traded at the junior exchange for the day.
Arya Sasol Polymer Company, Pasargad Insurance Company, Hormozgan Steel Company and Zagros Petrochemical Company had the most negative impact on IFX.
Sirjan Jahan Steel Complex gave the biggest boost to IFX, followed by Iranian Reinsurance Company, Saba Tamin Investment Company and Tukarail Company.