Major indicators in Tehran’s share market eked out gains in the last trading week that ended on Wednesday amid persistent capital outflow by retail investors.
The main index of Tehran Stock Exchange, TEDPIX, however, added more than 44,000 points and climbed 2.9% with big part of the gain registered on Monday at 2.5%.
The TSE’s equal-weighted index climbed 1.8%, showing that small caps were laggards. IFX, the main index of the junior equities exchange, Iran Fara Bourse, was up 1.93% in the week.
Amid uncertainty over trade, the market was lukewarm in the first two sessions last week before making a big jump on Wednesday thanks to the rise in currency rates.
Investor sentiment was buoyed after reports that the Central Bank of Iran allowed commodity companies to sell their overseas currency at higher rates, a development that potentially gives rise to their income. Rise in forex prices is obviously a boon for export-based companies who earn foreign currency.
Retail trade rose 8% on the preceding week with average daily trade rising from 41.04 trillion rials to 43.80 trillion rials ($141 million).
Capital quit the market in four of the five trading days last week. Total capital outflow by retail investors was reported at 7 trillion rials ($22m).
