Tehran stocks were bullish in the week ending on Wednesday, extending three weeks of a winning streak.
Shares of small-sized companies contributed the most to gains though large caps attracted investors’ attention following the rise currency rates.
The benchmark of Tehran Stock Exchange, TEDPIX, gained 2.3% during five trading sessions last week to reach 1,564,499, the highest in eight months.
TEDPIX is influenced mainly by price fluctuations in shares of big companies with high market capitalization, comprising petrochemical, metal, refinery, banks and auto companies.
The TSE’s equal-weighted index gained close to 3.8%, overpassing the market cap-weighted TEDPIX for consecutive weeks amid investor enthusiasm to buy small caps.
Retail trade increased 8% last week rising from an average 56.53 trillion rials ($188 million) per day in a week before to 61.39 trillion rials ($204m) per day last week.
Demand for small caps particularly soared last week after the government decided to overhaul the forex subsidy system with food companies topping the winners list.
On Wednesday the TSE’s Food-Index jumped 4.89%. Shares of the food industry were well-received by investors buoyed by the steep rise in prices of food items after the government ended allocation of subsidized currency for importing basic necessities earlier in the week.
