Business And Markets

Share Market Logs Worst Performance in 11 Months

Share Market Logs Worst Performance in 11 Months
Share Market Logs Worst Performance in 11 Months

Tehran stocks posted heavy losses in four out of five trading sessions last week, logging the worst weekly performance since November 2020.
The main gauge of Tehran Stock Exchange, TEDPIX, shed a total of 101,000 points last week and plunged 6.8% to settle at 1,386,450 points.
The TSE’s equal-weighted index closed the week 7.7% lower, indicating bigger losses for smaller market caps.
Average daily trade declined 21% to 184.72 trillion rials ($684 million) and capital continued to move out throughout the week. Net capital outflow exceeded 39 trillion rials ($144m) in the week, up 54% compared with a week before.
While the market rallied in the preceding month, it tumbled in the last calendar month to lose 8.5% after the benchmark neared the critical 1.6 million points.
The downswing is linked to a combination of factors, most notably concerns about a possibility that Central Bank of Iran may raise interbank rates.
Market experts point also to concerns about the decline in international commodity prices, which by extension impacts the income of big commodity-based listed companies. The declining pattern is also ascribed to high number initial public offerings, all held within a week, which reportedly drained the market of liquidity and triggered a new bout of sell-off. Six companies made debut in the past two weeks absorbing millions of dollars in market liquidity.

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