TSE witnesses 3.6% drop of its main index in a week

April 9, 2021 - 13:43

TEHRAN- TEDPIX, the main index of Tehran Stock Exchange (TSE), dropped 45,000 points, or 3.6 percent, in the past Iranian calendar week.

The index closed at 1.249 million points on Wednesday (the last working day of the week).

During the past week, the indices of Opal Kani Pars Mining and Processing Company, Social Security Investment Company, Mobarakeh Steel Company, and National Iranian Copper Industry Company were the most widely followed indices.

TEDPIX had risen eight percent in the last week of the past Iranian calendar year (ended on March 20).

The index increased 101,000 points to 1.307 million in that week.

After several weeks of decline, growth finally returned to the TSE, Iran’s major stock exchange, as TEDPIX rose 2.4 percent during the last week of February.

Market analysts and experts suggest investors to focus more on long-term investment in the Iranian stock market and to invest through intermediary tools like exchange-traded funds (ETFs) to prevent possible losses in the current Iranian calendar year (began on March 21).

They also advise shareholders to avoid impulsive decisions for quitting the market rattled by the surprising fluctuations in the stock market in the previous year.

In this regard, Vice Chairman of the Board of Directors at Tehran Stock Exchange Javad Eshqi-Nejad said the “exit strategy” is the worse course of action that a shareholder can take.

“For some hasty shareholders, exiting the market is their first choice after any fluctuation, while we have repeatedly stated that this is the worst type of strategy in this market,” Eshqi-Nejad told IRNA.

“Only those shareholders who invest in this market with a long-term vision should expect profit,” he stressed.

According to the official, people who are looking to invest in this market with small capitals and do not have much experience in this regard should invest through intermediary tools such as ETFs.

“Investing directly in the market is only for people who have enough experience in this market and are familiar with the risks," he emphasized.

Market analyst Alireza Tajbar believes that investors should consider the trend of stock exchange transactions in the past year as a criterion for their investment in the current year and to avoid entering the market directly.

People should invest in this market through intermediaries such as financial institutions in order to obtain a reasonable return on the market and prevent possible losses, he said.

According to Tajbar, in addition to stock market analysis, shareholders must be careful and consider the value of companies' profitability and spend more time for market analysis when investing.

Stock market expert Mohammad Eqbal-Nia also suggests investors to have always a long-term vision for investing in the stock market, and if they do not have enough knowledge or time to spend in the market, it is better to enter the market through indirect methods such as mutual funds.

MA/MA

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