TEDPIX drops over 14,000 points on Wednesday

December 16, 2020 - 15:55

TEHRAN- TEDPIX, the main index of Tehran Stock Exchange (TSE), lost 14,868 points to 1.413 million on Wednesday.

Over 13.437 billion securities worth 138.641 trillion rials (about $3.3 billion) were traded at the TSE on Wednesday.

The index had gained 36,000 points, or two percent, in the past Iranian calendar week (ended on December 11).

TEDPIX, which had been experiencing a surprisingly rising trend since the last days of the previous Iranian calendar year (ended on March 19), hit the record high of two million points on August 2, but then it began to drop, coming down to 1.2 million points.

After a period of correction, the index has been recently climbing.

A market analyst told IRNA on December 2 that the index is expected to resume its upward trend and reach 1.6 million points by the end of the current Iranian calendar month (December 20),

The TSE index will continue its upward trend until the end of the current year (March 20, 2021) and is expected to reach 1.8 million points by the end of the year, Ahmad Eshtiaqi said.

Referring to the return of the uptrend to the stock market, Eshtiaqi said: "One of the factors affecting the uptrend in the stock market is the sharp correction of the index and stock prices in the market, which has once again motivated investors to re-enter the stock market."

Eshtiaqi stated that the lack of increase in bank interest rates is one of the influential factors in the return of growth to the stock market and said: “Initially, there were rumors about an increase in bank interest rates in the market, which strongly affected the market trading process and accelerated the downward trend of the stock market index, but with the news of the stabilization of bank interest rates, we have witnessed a positive impact on the market in the form of the resumption of liquidity inflow.”

"The market is not facing any fundamental issues currently, but shareholders should not be expecting surprising growth like what we saw in the first few months of this year," he said.

He further noted that other than some political issues like the Joint Comprehensive Plan of Action (JCPOA), no external factor is threatening the stability of the country’s stock market in near future.


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