TEDPIX Notches Monthly Gain, Small Caps Stumble

Tehran stocks were mixed in the last calendar month to Oct. 22 amid better performance of large caps.
The benchmark of Tehran Stock Exchange, the market cap-weighted TEDPIX, closed 49.971 points or 3.6% higher compared to the month before to stand at 1.436 million points. It registered an 8.5% decline in the month before, the worst monthly record in 11 months.
While the TEDPIX rallied last month amid relatively higher demand for commodity stocks, most small caps stumbled and the TSE equal-weighted index lost 4.4%.
Money from retail investors continued to flow out the market throughout in 15 out of total 18 trading sessions last month reaching 63.48 trillion rials ($230 million) in the month.
Retail investors’ participation in trade declined last month to log 1,067.7 trillion rials ($3.9 billion) down 38% on the month before.
Panic selling continued to send stocks into a tailspin in the previous month due to market uncertainty over a possible change in the management of capital market authority that had overshadowed trade for weeks and kept market sentiment low.
Observers say there was no strong trigger, such as the rise in forex rates, to boost sentiment. Rise in currency prices normally impact the performance of export-based listed companies.