Written by Alireza Hojjatnia
Yesterday TEDPIX lost more than 2% value in the worst fall off since March 2015. Seemingly the CBI’s chairman, Valiollah Seif, statement was the catalyst behind the riot, yet TSE savants chose to look the other way around.
“So far, Iran has gotten “almost nothing” from the accord, which was implemented on Jan. 16, said Seif in an interview with Bloomberg Television.
The market’s shallow rendition of the statement was in fact naive.
Since Feb 2016, the index rallied on for almost a month, surging with a hint of emotion. The market, somehow, was ready for a correction. Furthermore, margin buyers in the leader automotive sector added up sale pressure to be another reason for market to end red.
Tehran and Ankara to develop the co-operation on the capital market. President Hassan Rohani mentioned the goodwill to fuel the banking sector and credit lines collaboration between the two nations, on his official Turkey visit.
Petrochemicals feedstock priced 8.2 cents for the first half of 1395 (2016/17). Over the past few days there were rumors on even less prices, neither that nor the official announcement ignites the sector’s giants to start a race. The bearish trend in the industry is on government not being clear on its main policies towards the PetChems, raising the investors risk and makes the firms unappealing.
In the Market
TEDPIX declined 468.61 points (0.6%), on today’s trading session, and stand on 77,516.20 to continue the bearish trend for consecutive days.
Auto sector is still under the sale pressure with “Khodro” being the leader, affected the index by 63.82 minus points. Trend was followed by almost all the other sector players. Name “Saipa” the second in place, lowered TEDPIX 41.85 points with more than 103 mn shares traded. The high trade volumes, over 646 mn shares with a total value of around USD 33 mn, can promise a room to improve over the industry, but as far as no clarification on the foreign contracts and the whole future of the firms, there will be nothing solid to stand on.
Situation over the Metals were no different. Most of the major players in the sector faced sale pressure as before but this time it was not brutal. Almost all the tickers ended red yet “Iran National Copper Industries” and “Khuzestan Steel” closed 1.44% and 1.90% higher respectively. ”Foulad” traded the most (over 25 mn shares) and declined 0.95%.
“Bandar Abbas Oil Refinery” lowered the index 67.15 points to have the most negative impact. Almost all of the oil products sector components were the same. The old story of low oil prices is still the main catalyst behind the inert condition. Over 4 mn shares of “Shepna” were traded today and the refinery closed at -2.54%.
“IRI Shipping Lines” and “Mapna Group” were as TSE saviors preventing the index to not fall even harder and lower. Over 14 mn shares of “Mapna” traded by end of today’s session, closing the technical firm at +1.97%.