Tehran’s share market wrapped up the week on Wednesday apparently stuck in the downside after posting 10% surge the week before.
Tehran Stock Exchange main index, TEDPIX, lost nearly 783 points or 0.06% in the week to end at 1,413,574. Trade at TSE starts on Saturday and ends Wednesday.
The TSE’s equal-weighted index was up 3,898 points or 0.98% during the week. About 34.3 billion shares worth 237.27 trillion rials ($650 million) changed hands at TSE during the week, down 34.3% in volume and 27.4% in value.
Iran Fara Bourse's main index, IFX, too gained 56 points or 0.31% in the week.
According to the Persian-language economic news website Eghtesadnews, retail investors stayed put unwilling to trade last week with institutional investors trying with little success to lift the sagging market.
Net capital outflow by retail investors amounted to 15.02 trillion rials ($42.3m), nearly 6.8 trillion of which was on Monday.
Capital outflow had raised alarm bells about the liquidity crunch in the bourse largely due to the increasing aversion of retail traders to participate.
Retail trade plunged 35% last week from the preceding week declining from 382.69 trillion rials ($1.07 billion) to 247.99 trillion rials ($698.5m).
Average daily retail trade also declined by 29% last week, from 52.18 trillion rials ($146.9m) to 36.86 trillion rials ($103.8m).
Persistent decline in retail trade is seen as a bad omen for the bourse and experts say if the share market can improve the active participation of retail investors is a must, to say the least.
TEDPIX, gained nearly 130,807 points or 10.9% during the week before recovering some loss in recent weeks.
In related news, the government announced a major support package that came into effect at the weekend following the more than two-year decline in the bourse.
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 also 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 persistent investor concerns.
