Business And Markets

Stocks Log 4th Consecutive Weekly Decline 

Stocks Log 4th Consecutive Weekly Decline 
Stocks Log 4th Consecutive Weekly Decline 

Struggling with recession and liquidity crunch, Tehran’s share market registered four straight weekly losses last week. 
The bearish trend was spurred by huge sell-off in small-sized companies, which caused the equal-weighted index of Tehran Stock Exchange to lose 2.75%. 
Thanks to the support of institutional investors, large caps incurred smaller losses. The TSE’s market cap-weighted benchmark, TDEPIX, shed 12,552 points during the week and lost 0.8%. 
Net capital outflow by retail investors continued for the 21st consecutive session on Wednesday. During four trading sessions in the last business week, 17.61 trillion rials ($56.8 million) fled the share market. This was up 32% compared to the week before. 
The sped of capital outflow is raising alarms about liquidity crunch due to the increasing unwillingness of retail traders to invest in the bourse. 
Retail trade dropped 14% from the week before, declining  from the average 34.28 trillion rials ($110m) per day to 29.46 trillion rials ($95m) on daily basis last week. 
Given the climate of uncertainty and pessimism, retail investors are unwilling to trade with institutional investors taking a more active role.     


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