Markets in Brief 05.01.2018

On Sunday, 31.12.2017, Tehran Stock Exchange main index dropped by 1.7% to register the biggest fall during one trading day, during the current fiscal year (i.e. since March 21, 2017). The stock market started declining as of Saturday as the protests increased, indicating the fear of investors of insecurity, driven mainly by several individual investors leaving the market. However, on Monday the Market halted its decline as the situation became more stable and calmed down. However, the market fell further on the last trading day of the week and the Overall Index of TSE, declining 311.73 points (0.32%), closed at 95,929.46. Tehran Stock Exchange market cap lost nearly 110 thousand billion IRR ($3 billion) over this week and the individual ownership of shares decreased by 2500 billion IRR. Taadol daily writes that his amount is nearly equivalent of the capital brought to the capital market by individual investors over the past couple of weeks. Although half of the profit in the market depends on the foreign currencies due to the export of the goods, unlike normal days that the increase in foreign exchange rate leads to higher profitability and therefore attracting investors to the market, this time the capital market and exchange rate diverged.