Tehran’s share market wrapped up the week on Wednesday recovering some loss in recent weeks after 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 130,807 points or 10.9% in the week to end at 1,414,541. Trading at TSE starts on Saturday and ends Wednesday.
The TSE’s equal-weighted index was up 31,818 points or 8.7% during the week. About 42.4 billion shares valued at 292.41 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 inflow by retail investors continued during the week nearing 620 billion rials ($2.1m).
Capital outflow had raised 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.
The recovery in the market came after the announcement of a major support package by the government that came into effect at the weekend following the more than two-year decline in the Tehran Stock Exchange main index
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 ($151m) will be deposited with the Capital Market Stabilization Fund (CMSF).
The Securities and Exchange Organization (SEO) is set to announce further support 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.
