Tehran stocks ended trading week mixed with large caps lagging behind amid upbeat mode in small-sized companies.
The equal-weighted index of Tehran Stock Exchange ended in positive territory in all four trading sessions in the week, putting weekly gains at more than 2.5%.
Large caps and blue chips were the main laggards making the TSE’s benchmark, the market cap-weighted TEDPIX, to barely gain 0.6%.
TEDPIX is influenced mainly by price fluctuation in shares of big companies with high market capitalization, comprising petrochemical, metal, refinery, banks and auto companies.
The main index of junior equity exchange Iran Fara Bourse, IFX, gained 0.7% in the week.
Observes link the poor demand for large cap stocks to a recent decision by the Industry Ministry to impose higher export tariffs.
The decision apparently hurt trade and weakened sentiment as investors fear higher export duties undermine profitability of listed companies.
Head of the Securities and Exchange Organization Majid Eshqi has opposed the new duties saying it will have a harmful effect on export-based listed companies.
According to market data published by EcoIran Web TV, the Financial Tribune's sister media outlet, average retail trade dropped from 69 trillion rials ($250 million) per day in a week before to 59.04 trillion rials ($214 million) a day last week, indicating 3% decline.
Despite the slight weekly decline, retail trade increased significantly from preceding months. Market observers opine that the increase is due to the higher participation of retail investors, which is a good omen and helps the market thrive.
The market saw outflow of liquidity by retail investors last week. Net capital outflow by retail traders stood at 2.78 trillion rials ($10 million).
