According to the “Tehran Chamber of Commerce, Industries, Mines and Agriculture”(TCCIM), equities in Tehran Stock Exchange and Iran Fara Bourse (an over-the-counter trading exchange) made a rare nosedive at the start of trading week on Sat. Jan. 4th. as markets dived down following renewed military tensions in the strategic Persian Gulf region.
Investors pushed sentiment aside and rushed in swarms to dump shares unnerved and concerned about what could unfold in the uncertain future under rising political tensions in this strategic region.
Stocks took a historic drubbing in terms of volume while in percentage terms the drubbing was at its highest since March 2015, according to analytical website Donyaye Bourse.
The massive sell-off in the early moments of Saturday’s trade forced members of the High Council of Securities and Exchange to hold an extraordinary meeting to prop up TEDPIX and avoid further damage.
Participants apparently mandated legal entities and investment funds to support the market by pumping money and buying stocks that traditionally have the most significant impact on TEDPIX.
More specifically, Capital Market Stability Fund and the Capital Market Development Fund were delegated the task of injecting billions of rials into the market, according to two stock market officials.
The officials told Bourse Press that the funds initially will concentrate on bank and auto stocks and later cover a wider range of stocks.
The moves slowed down the market collapse but were not apparently enough to boost the benchmark in the face of a large number of jittery investors.
While the majority natural entity investors were sellers, legal entity traders bought equities worth more than 20 trillion rials ($153 million) from fainthearted sellers.
Market Performance
The TSE’s main index TEDPIX lost 16,765.05 points, or 4.36%, on Saturday to end trading at 367,334.0.
About 6.93 billion shares valued at 31.34 trillion rials ($235.65 million) changed hands at TSE for the day.
Trading at TSE and over-the-counter Iran Fara Bourse starts on Saturday and ends Wednesday.
Among the handful number of stocks that ended in the green was Bafgh Mining Company whose price went up 4.37% to 87,628 rials per share.
Pars Minoo Industrial Company incurred the biggest loss among all TSE-listed companies and went down 9.53% to 14,494 rials per share.
Mobarakeh Steel Company contributed the most to the benchmark’s fall, followed by Persian Gulf Petrochemical Industries Company, National Iranian Copper Industries Company and Golgohar Mining and Industrial Company.
Bafgh Mining Company gave the biggest boost to the benchmark index, followed by Dashtestan Cement Company, Iran Alloy Steel Company and Noosh Mazandaran Company.
The Price Index lost 4,485.02 points, or 4.36% to close at 98,284.0.
First Market Index was down 12,763.36 points, or 4.64% to post 262,422.6. Second Market Index was down 31,495.20 points, or 3.94% to reach 767,517.8.
The Industry Index went down 15,013.84 points or 4.34% to register 330,541.2. The Free Float Index was down 20,384.39 points to hit 433,328.05.
TSE 30 went down 762.25 points to settle at 15,299.6 and the TSE 50 ended 667.19 points lower to finish at 13,945.3.
