Bourse Showing Signs of Improvement
EghtesadOnline: Tehran’s stock market has been bullish in recent days indicating that it is recovering from a bearish trend that lasted for almost a year.
Benchmark of Tehran Stock Exchange eked out a 2% gain on the last trading week Wednesday to extend a 3-week winning streak.
The TSE’s equal-weighted index closed the week 2.2% higher indicating that small caps outperformed blue chips last week, according to the Persian-language economic website Eqtesad News.
Retail investors’ return is seen as one of the driving forces behind the buoyant mood. Market data last week showed net capital inflow by retail investors for the second week in a row after logging 25 consecutive weeks of outflow.
The share market has been grappling with an unending bearish trend that began after price the bubble burst last August and non-stop selloff swept through most share categories.
Since then the government has been trying to revive the trust of millions of retail investors who were publicly encouraged by those at the highest echelons of power to put their money in the bourse.
Investor sentiment improved after the government in May said it would enforce support measures to boost the market.
In coordination with the other two branches of power, the measures were perceived by investors as a genuine move to lift the market after heavy losses.
Among other things, the measures include borrowing from the National Development Fund of Iran (sovereign wealth fund), removing restrictions on banks and brokerage firms to invest in share market and encourage foreign investment.