TEHRAN- After several weeks of drop, TEDPIX, the main index of the Tehran Stock Exchange (TSE), could finally register growth in the past Iranian calendar week.

The index rose two percent to stand at 1.207 million points on Wednesday (the last working day of the week).

During the past week, the indices of Iran Khodro Group, Saipa Company, Social Security Investment Company, Tehran Oil Refining Company, and Isfahan Oil Refinery were the most widely followed indices.

Farhang Hosseini, a capital market expert, told the Tehran Times on Tuesday that although several external factors, including the disputes between the oil and economy ministries over the offering of the second ETF (dubbed First Refinery, or Dara Second), increase in interest rates, the ambiguities in the next year’s national budget bill, and etc. have contributed to the decline of the TSE’s main index over the past few months, the main reason for this decline is the unconventional valuation (to be more precise the over-valuation) of entities in this market for encouraging liquidity inflow.

“The market is correcting itself and most of the companies, enterprises, and funds are getting closer and closer to their real values,” Hosseini explained, adding: “The market has quickly returned to a logical valuation level and more than half of the market is within the reasonable value range.”

MA/MA