The Tehran Stock Exchange main index (TEDPIX) retreated slightly on Monday, after its mixed trading day a day earlier.
According to the TSE website, the equity market main indices finished a choppy day on Monday with minor gains, while the second market index couldn't compensate its losses and stayed in red.
The TEDPIX ticked higher 15.7 points or 0.02 percent to stop at 71,402.4. The first market index was green as it rose 20.2 points or 0.04 percent to 52,404.4. The free floating index contributed the most to keep the market sentiment up as it gained 102.6 points or 0.13 percent standing at 141,692.6. The Industry index was up 11.5 points or 0.02 percent reaching 60,493.5, and the blue chip index had a mixed day and inched up 0.1 point to 3,283.8.
But the second market index couldn't stay in the green territory. It shed 22.4 points or 0.02 percent to be the only laggard in the market.
The TSE's biggest drubbing on Saturday, the first day of the Iranian week, was breathtaking enough to push the market officials to meet to find a solution over the escalating concerns among investors. Representatives from TSE, Securities and Exchange Organization, and brokerages came together on Sunday to address the issues, according to SENA.
Uncertainties have captured all headlines in the equity market as in every trading day, these headlines apparently work as the market jitters, heading the market sentiment to unprecedented ups and downs.
The banking interest rate is among the most crucial obstacles that have impeded further liquidity into the equity market, as investors prefer to easily get a fixed annual interest rate of 22 percent from banks, which are able to guarantee the interest of the investors' deposits.
Worried about market fluctuations, many TSE stakeholders already sold off their stocks and stepped out of the equity market. Mutual funds have instead started gathering the shares of big companies as their stocks are being undervalued.
Today's situation has prepared a chance for portfolio investors to collect shares, but investors should bear in mind that no drastic shift in the equity market is imaginable for the weeks to come.
Due to the government's plan to help provide finances for companies through the capital market, one can expect that the listed companies in TSE will not suffer from current financial problems for a long time, market analysts say.
The government is now trying to convince governmental and semi-governmental bodies to offer their shares in the stock exchange.
On the other hand, commercial banks are trying to revive their capital with the help of the return of overdue loans, which weighs a lot to bring fresh cash flows to the stock market, although it seems to be a sluggish process.
The bottom line is that providing sufficient funding and allocating that to those industries and businesses which are short of finances will stimulate productivity, so it seems to be a practical remedy to the get economy back on track.
