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A Week of Decline for Stock Market

A Week of Decline for Stock MarketA Week of Decline for Stock Market

Stocks accelerated their decline on Tehran Stock Exchange this week compared to the previous week.

Iranian week days start on Saturday and end on Friday. TSE trading days end on Wednesday.

On the Iran Fara Bourse, losses were minimal due to a two-day rally in the middle of the week.

Equities’ fall is a sign of fading optimism about the post-sanctions era and the ramifications of lifting of sanctions. Some analysts see the current downturn as a correction to the unprecedented rally in July, despite global economic turmoil due to sanctions relief, which saw the TSE gain over 35% in less than two months.

TSE’s benchmark fell 2.06% and finished the week at a three-month low. Its main index, TEDPIX, dropped 2,000 points to 77,094 points on Wednesday.

On the other hand, IFB’s benchmark, IFX, only edged down just over two points or 0.2% and closed at 794.11 points.

Stocks on TSE kicked off the week with a 0.8% drop on Saturday, following it by a 0.4% drop on Sunday.

Bulls and bears balanced each other out on Monday, with TEDPIX staying almost unchanged.

After Monday’s failed rebound, equities started sliding further with 0.57% and 0.82% declines on Tuesday and Wednesday respectively. Bulls tried to push stocks up on Wednesday, almost erasing the previous day’s losses. But support for the rally was weak and TEDPIX fell soon after.

IFB edged down at the market’s open on Saturday, only to rise 0.9% in the next three days to 802.86 points, wiping out a week of prior losses.

Wednesday was not a good day for IFB.

After diverging from TSE’s downtrend for much of the week, IFX dipped to its lowest in the week by Wednesday’s close. IFX fell 8.75 points or 1% and finished at 794.11 points on Wednesday.

Financialtribune.com