TEDPIX falls 11% in a week
TEHRAN- TEDPIX, the main index of the Tehran Stock Exchange (TSE), which is Iran’s major stock exchange, dropped 11.3 percent in the past Iranian calendar week (ended on Friday).
The index stood at 1.757 million points at the end of the past week, IRNA reported.
As reported, most of the trades were conducted through the indices of National Iranian Copper Industry Company, Ghadir Investment company, Bank Saderat, Mobarakeh Steel Company, and Bandar Abbas Oil Refining Company, while transportation, paper products, ceramic and tile, cement and chalk were the most traded items at the TSE during the previous week.
TEDPIX had also experienced a two-percent drop in the week ended on Friday, August 14.
It should be mentioned that the index had hit the record high of two million points on August 2, and while it had been experiencing an unprecedented trend of rising over the recent months, it witnessed several days of drop in the past two weeks.
Gaining 45,672 points on August 2, the TSE’s main index had stood at 2.007 million, notching up another outstanding record in the current Iranian calendar year (started on March 20).
It had hit the record high of 1.5 million points on June 30, and then it climbed half a million points in just one month to hit the record high of two million.
Iranian stock market, which had been experiencing some unprecedented growth in the past Iranian calendar year, continued its trend of growth during the present year as well.
It’s been a while that the capital market in Iran had been unbelievably flourishing; we have been witnessing new record highs continuously posted by the TSE since the year start, and climbing to the peak of one million points, something almost unbelievable just some time ago, came true in early May.
Such prosperous status of the capital market led to a highly absorbing of liquidity.
As announced by the head of Iran’s Securities and Exchange Organization (SEO), the amount of liquidity absorbed by Iran’s capital market reached 500 trillion rials (about $12 billion) during the first quarter of the current year (March 20-June 20).
Hasan Qalibaf-Asl said, “It is while the total amount of liquidity entered into this market stood at 300 trillion rials (about $7.14 billion) during the past year.”
But since two weeks ago, when the stock market experienced some trend of falling, the liquidity is being exited from this market, and some experts say that such exit of liquidity will increase the inflation rate.
In an interview conducted by the Tasnim news agency last week, Shayan Zahrakar, a capital market expert, said that when the liquidity is bringing out of the capital market, it will lead to higher inflation.
“Without the support of the government, it could not be expected that there will be again the long lines of investors for buying shares at the stock market and the money flowing from the parallel markets to the capital market”, he noted.
Majid Mohammad Alizadeh, another capital market expert, told IRNA in another interview that the government’s support can surely bring growth back to the stock market.
MA/MA
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