Hammered by the deep recession and unending liquidity outflow, Tehran’s share market was stuck in the red in the last calendar month that ended on Friday (July 22).
In 19 sessions the main index of Tehran Stock Exchange, TEDPIX, shed more than 67,700 points and plunged 4.4% to settle at 1,471,000 points last month. The benchmark closed seven sessions in positive territory and 12 in the red.
With the recession apparently here to stay, the TEDPIX logged a second monthly loss after registering a 2.5% decline the month before.
Under the bullish run the TSE’s main index gained more than 14% in the first two months of the year starting in late March before entering the bear market.
In the month, the TSE’s equal weighted index lost 4.6%. Unlike the market cap-weighted index, the equal-weighted index better reflects the performance of companies with small market cap.
The latter index, however, eked out more gains in the first four months of the current fiscal year compared to TEDPIX.
It has gained close to 16% since the beginning of the year on March 21 until Wednesday. The relatively robust gains indicate the better performance of small caps.
The TEDPIX gained no more than 7.6% in this period. Likewise, the TSE-30 Index climbed a little more than 4% in four months.
The TSE-30 Index tracks the performance of stock of the top 30 companies in terms of market capitalization.
All trading sessions last month saw outflow of capital by retail investors. Net capital outflow by these traders amounted to 68.12 trillion rials ($220 million).
The lingering capital outflow is accompanied by the staggering decline in retail trade. According to market data, average value of daily trade was 32.57 trillion rials ($105m) last month, which is 31% lower on the previous month.
Retail trade plunged to the lowest level in the past 14 months on Wednesday to reach 16.93 trillion rials ($54.6m).
