TEHRAN- TEDPIX, the main index of Tehran Stock Exchange (TSE), dropped 7,279 points to 1.207 million on Wednesday.

The first market’s index lost 4,320 points, and the second market’s index fell 18,236 points.

Farhang Hosseini, a capital market expert, told Tehran Times on Tuesday 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.

“The market is correcting itself and most of the companies, enterprises, and funds are getting closer and closer to their real values,” Hosseini explained, adding: “The market has quickly returned to a logical valuation level and more than half of the market is within the reasonable value range.”

MA/MA