Tehran Stock Exchange (TSE) recorded its longest losing streak within the past couple of years, with the benchmark nose-diving almost 3 percent during the past week, which ended January 7.
Selloffs at the equity market heavily weighed on the sentiment over the past couple of weeks; however the hobbling economy is expected to intensify the shaky atmosphere within the upcoming week.
According to TSE data, the overall index plunged 2,071 points or 3.03 percent to register one of the gloomiest weeks ever. The benchmark has tanked more than 15 percent since the beginning of the current Iranian year, which ends March 21.
The first market index retreated 1,299 points or 2.25 percent to end at 49,618.4. The second market index tumbled 5,569 points or 4.13 percent to settle at 129,379.8. The free float index sank 2,323 points or 2.94 percent to 76,654. The industry index was off 1,778 points or 3.07 percent to 56,102.6. The blue chip index plummeted 79 points or 2.54 percent to finish a shaky trading week at 3,017.
Almost 2.57 billion shares changed hands, valued at close to 7.1 trillion rials. The volume and value of trade posted 10.1 and 4.7 percent growth respectively.
A variety of contributors keep weighing on investors’ sentiment; however, the next fiscal year budget’s shortfall is the most crucial one.
As market analysts believe, global economic slowdown, western sanctions, ambiguities over a possible nuclear accord between Iran and the P5+1 are portraying a dismal outlook for the upcoming year, which starts March 22.
Due to the ongoing selloffs at the equity market, which have imposed heavy losses to both individual and institutional investors, nothing may change the downtrend except for a strong trigger.
Since listed industries at the TSE are grappling with crude price plunge, prevailing sanctions, and a gloomy atmosphere toward the future, a comprehensive nuclear accord may help the TEDPIX find its way back to the green territory.
The newly appointed head of the Securities and Exchange Organization (SEO) is trying to tackle the issues surrounding the equity market with assistance of all related ministries.
Since the TSE’s gauge is settled down in red, the refining companies’ ticker symbols are expected to weigh on the TEDPIX.
The refining companies have been blocked for transparency issues and price discovery for their main commodities since almost a year, which was accompanied by heavy losses to investors.
Having them back at the equity market is expected to intensify the downtrend, however, the stocks are already dramatically undervalued, and any threat is expected to be short-run.
