TEDPIX gains 3,000 points on Sunday

January 31, 2021 - 15:18

TEHRAN- TEDPIX, the main index of the Tehran Stock Exchange (TSE), rose 3,839 points to 1.25 million on Sunday.

Over 13.207 billion securities worth 142.416 trillion rials (about $3.39 billion) were traded at the TSE on Sunday.

The first market’s index fell 292 points, while the second market’s index rose 18,599 points.

After several weeks of drop, TEDPIX 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).

In early August 2020, when all the major stocks around the world were experiencing serious declines, TEDPIX surpassed two million points.

This situation created some skepticism among investors regarding the creation of a bubble in the market, and some economists and market analysts also warned about the government’s over-interfering in this market.

The government, however, continued offering more and more of its entities on the market and further encouraged people to invest in the market.

Turning the fears of the investors into reality, TEDPIX started a downward trend in mid-August and has since slumped about 38 percent.

What President Rouhani called one of the most “astonishing rises” in the history of the stock market, became one of the most dramatic swings on record.

Now, the big question would be “what is on the horizon for the Iranian stock market?”

Farhang Hosseini, a capital market expert, has told the Tehran Times 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.

MA/MA

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