Tehran’s share market wrapped up the week on Wednesday recovering some loss incurred in the week before when it was hit by the biggest five-day loss since the beginning of the fiscal year in late March.
Tehran Stock Exchange main index, TEDPIX, gained nearly 42,374 points or 3.42% in the week to end at 1,283,541. Trading at TSE starts on Saturday and ends Wednesday.
The TSE’s equal-weighted index was up 4,389 points or 1.21% during the week.
About 42.44 billion shares valued at 292.49 trillion rials ($849 million) changed hands at TSE during the week.
Iran Fara Bourse's main index, IFX, too gained 179 points or 1.04% in the week.
Net capital outflow by retail investors continued during the week nearing 19.1 trillion rials ($55.4m) in five sessions.
Capital outflow by retail investors amounted to 9 trillion rials ($26m) last Saturday, the highest daily outflow of all times, Eghtesadnews reported.
The recovery in the market came after the announcement of a major support package by the government at the beginning of the week that came into effect at the weekend following the more than two-year decline in the Tehran Stock Exchange main index
The outflow was 5 trillion rials on Sunday, which was the highest in the current fiscal year.
Capital outflow continues to raise alarm bells about the liquidity crunch in the bourse largely due to the increasing aversion of retail traders to put money in the share market.
Average daily retail trade reached 25.66 trillion rials, Ecoiran website reported.
The recovery in the market came after the announcement of a major support package by the government at the beginning of the week that came into effect at the weekend following the more than two-year decline in the Tehran Stock Exchange main index.
The support plan says henceforth the portfolio of private persons, worth up to a billion rials ($3,000) for each person (valid for 96% of private codes active in the bourse) will be insured through the issuance of put options.
Fresh resources will be made available from state funds for share purchase and increase gradually. Money allocated to the capital market in the 2022-23 budget to the tune of 50 trillion rials ($151 million) will be deposited with the Capital Market Stabilization Fund (CMSF).
Later in the week the Securities and Exchange Organization (SEO) is set to announce further support policies to help arrest the seemingly unending slide in the stock market and address shareholder concerns.
While the recent package seeks to address some minor concerns in the market, the upcoming measures will deal with major concerns of market players.
