Baku, Azerbaijan, Sept.5
By Fatih Karimov - Trend:
The Tehran Stock Exchange (TSE) main index dropped 1,191 points last week and stood at 72,121 points.
TSE shareholders experienced 8.7 percent loss on average last week, up 1.6 percent compared with two weeks ago, Iran's ISNA news agency reported on September 5.
The value and the volume of transactions declined 26 percent and 17 percent, respectively week on week.
Experts believe that imposing new sanctions by the U.S. against some Iranian companies was the main reason behind the recession in the TSE.
The TSE price-earnings ratio, also known as P/E ratio, has dropped 21 percent since the beginning of the current year.
The TSE's P/E ratio is currently about 5.6 - down 21 percent from beginning of the year, Iran's ISNA news agency reported on August 29.
In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E.
Tehran Stock Exchange's main index (TEPIX) rose 110 points on Aug. 23, reaching 74,000 points.
The Iranian fiscal year started on March 21.
Founded in 1967, the Tehran Stock Exchange has been one of the world's best performing stock markets in recent years and has ranked as the best bourse index in Europe, Africa and Middle East in 2010 in terms of performance of the main index.
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