Tehran’s Stock Exchange ended lower on Sunday as investor sentiment was battered by the negative outlook for global commodity prices and the selloff in world stock markets.
Falling oil prices and the ongoing trade war between China and the United states along with the second batch of US sanctions that were reimposed on Iran last week are all factors behind the stock market decline.
The benchmark TEDPIX Index closed down by 3,562.81 points, or 1.93 %, at 180, 6668.3, after scaling a high of 184,265 in the session.
On Thursday, the index ended down 11.96 points, or 0.08%, at 15,357.47, snapping a three-day winning streak. Oil prices shed a fifth of their value in just one month after surging to a four-year high in early October, driven by a combination of factors centred on higher supply and fears of sluggish demand.
Brent crude dropped below $70 a barrel on Friday for the first time since April while the New York's West Texas Intermediate (WTI) sank below $60 a barrel, a nine-month low.
The United States has upped production of shale oil, while Saudi Arabia, Russia and others have raised supplies of crude amid signs of slowing demand. The slide also comes during signs of a softer-than-expected impact from US sanctions on Iran oil exports.
Washington had been pushing governments to cut imports of Iranian oil to zero. But, fearing a price spike, it granted Iran’s biggest buyers - China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey - sanctions waivers.
That will allow the eight, which account for about 75 % of all Iran’s oil exports, according to trade data, to import at least some oil for another 180 days.
As shares of export-oriented companies lost ground, bank shares have been rising on TSE on optimism over reforms in the banking system which is expected to culminate in capital increases and mergers. But on Sunday, the broader selloff spilled off to bank shares including Bank Mellat which had been the best-performing share in its category.
Market Indexes
Tehran Stock Exchange’s main index lost 3,562.80 points or 1.93% on Sunday to end trading at 180,668.3.
About 2.38 billion shares valued at $56.76 million changed hands at TSE for the day. bTrading at TSE and Iran Fara Bourse starts on Saturday and ends Wednesday.
Sepanta Co. was the biggest winner as its shares went up 14.82% to 35,372 rials per share.
Ama Industrial Company incurred the biggest loss among all TSE-listed companies and went down 18.45% to 3,037 rials per share.
Persian Gulf Petrochemical Industries Company contributed the most to the benchmark's fall, followed by Mobarakeh Steel Co., and Iran National Copper Industry Company.
HiWeb gave the biggest boost to the benchmark index, followed by Mobin Petrochemical Co., and North Drilling Co.
The Price Index lost 1,037.64 points to close at 52,619.1.
The First Market Index was down 2,821.32 points to post 134,323.7. Second Market Index decreased by 6,140.47 points to reach 353,975.5.
The Industry Index went down by 3,220.31 points to register 164,278.7. Free Float Index was down 3,682.44 points to hit 190,498.12.
The TSE 30 went down 189.07 point to settle at 8,938.2 and the TSE 50 ended 170.02 points lower to finish at 7,973.3.
IFX Down 1.68%
Iran Fara Bourse’s main index IFX lost 33.51 points or 1.68% to close Sunday trade at 1,960.84.
About 635.34 million securities valued at $29.5 million were traded at the over-the-counter exchange for the day.
Esfahan Steel Company had the highest number of traded shares and trade value as 160.21 million of shares worth $3.18 million changed hands.
Ghaed Bassir Petrochemical Products Co., Esfahan Steel Co, and Behpak Industrial Company registered the highest value increase.
Kish Parsian Electronic Commerce, Chaharmahal Food Products and Sugar Company, and Pasargad Oil Co. suffered the biggest decline.
Zagros Petrochemical Co, Middle East Mines Industries Development Holding Company, and Marun Petrochemical Co. had the most negative impact on IFX.
