Tehran Stock Exchange posted growth during the eighth month of the current fiscal year (started March 21), after registering declines in five successive months.
In 22 sessions, the main index of Tehran Stock Exchange, TEDPIX, gained more than 99,638 points and grew 7.61% during the month to Nov. 22 to settle at 1,408,595. The benchmark closed 15 sessions in positive territory and seven in the red.
Under the bullish run, TSE’s main index gained more than 14% in the first two months of the year before entering the bear market.
TEDPIX shed more than 46,281 points or 3.41% during the month to Oct. 22 to settle at 1,308,960 and TSE’s equal weighted index gained 6.72%.
Unlike the market cap-weighted index, the equal-weighted index better reflects the performance of companies with a small market cap.
The latter index, however, eked out more gains in the first four months of the current fiscal year compared to TEDPIX.
It has gained close to 16% since the beginning of the year on March 21 until Wednesday. The relatively robust gains indicate the better performance of small caps.
About 212.2 billion shares valued at 1,165 trillion rials ($3.34 billion) changed hands at TSE during the month, indicating a 100.8% growth in volume and 79% growth in the collective value compared with the month before.
The price index gained 7.34% to finish the month at 321,001. The First Market Index was up 7.78% during the said month. The Second Market Index added 6.25% to reach 2,755,462.
The Industry Index increased by 8.54% and the Free Float Index registered a monthly growth of 8.02%.
The TSE 30 went up 11.3% to settle at 80,776. The TSE-30 Index tracks the performance of stocks of the top 30 companies in terms of market capitalization.
According to EcoIran Web TV, 85% of trading sessions last month witnessed a capital outflow by retail investors. Net capital outflow by these traders amounted to 57.02 trillion rials ($163.8 million).
The lingering capital outflow is accompanied by the staggering decline in retail trade. According to market data, the value of daily trade averaged 363.2 trillion rials ($1.04 billion) last month, which is 6% lower on the previous month.
Retail trade amounted to 781.3 trillion rials ($2.24 billion). The average daily retail trade posted a 76% growth compared with the month before.
Market recovery came after the announcement of a major support package by the government at the beginning of the week, which came into effect at the weekend following the more than two-year decline in the main index of Tehran Stock Exchange.
Impacting Factors
The support plan says henceforth the portfolio of private persons, worth up to a billion rials ($3,000) for each person (valid for 96% of private codes active in the bourse) will be insured through the issuance of put options.
Fresh resources will be made available from state funds for share purchase and increase gradually. Money allocated to the capital market in the 2022-23 budget to the tune of 50 trillion rials ($144 million) will be deposited with the Capital Market Stabilization Fund.
The Securities and Exchange Organization is set to announce further support to help arrest the seemingly unending slide in the stock market and address shareholder concerns.
While the recent package seeks to address minor concerns in the market, the upcoming measures will deal with major concerns of market players.
On the last day of the previous fiscal month, local media outlets reported the resignation of Majid Eshqi, SEO chief. The government's decision not to incorporate SEO-proposed measures in the 2022-23 draft budget was said to be the main reason Eshqi decided to quit.
The High Council of Capital Market, the highest decision-making body, on Monday rejected the resignation of SEO chief, voicing its full support for Eshqi in his efforts to address shareholder concerns and remove hurdles hampering the market for more than two years.
