The Tehran Stock Exchange reported growth in the ninth month of the current fiscal year, for the second successive month.
In 22 sessions the main index of Tehran Stock Exchange, TEDPIX gained more than 87,603 points surging 6.22% to Dec. 22 to settle at 1,496,201. The benchmark closed 14 sessions in positive territory and seven in the red.
Under the bullish run, the TSE main index gained more than 14% in the first two months of the year before entering the bear market. TEDPIX gained more than 99,638 points and added 7.61% during the month to Nov. 22 to settle at 1,408,595. In the month to Dec. 22 TSE’s equal weighted index gained 10.2%.
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 gained close to 16% since the beginning of the year on March 21 until last Wednesday. The relatively robust gains indicate the better performance of small caps.
About 248.4 billion shares valued at 2,327 trillion rials ($6.04 billion) changed hands at TSE during the month, up 17.02% in volume and 99.69% higher in value compared to the month before.
The price index gained 6.2% to finish the month at 340,915. The First Market Index was up 6.38% in the month while the Second Market Index climbed 6.02% to reach 2,921,433.
The Industry Index increased by 6.76% and the Free Float Index registered a monthly growth of 6.66%.
The TSE 30 went up 7.07% to settle at 86,486. This index tracks the performance of stocks of the top 30 companies in terms of market capital.
According to EcoIran web TV, net capital outflow by retail traders amounted to 9.57 trillion rials ($24.8m) during the period, down 83% on the previous month.
The lingering capital outflow was accompanied by the staggering decline in retail trade. According to market data, the value of daily trade averaged 430 billion rials ($1.16 billion) last month. It was 2,590 trillion rials ($6.57b) last month.
Retail trade amounted to 897 trillion rials ($2.32b). The average daily retail trade posted 15% growth compared to month before.
Market recovery came after the announcement of a major support package by the government, which came into effect following more than two years of decline in the main TSE index.
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 put options.
Fresh resources will be made available from state funds for share purchase and would 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.
