Baku, Azerbaijan, Sept. 6
By Fatih Karimov - Trend:
The Tehran Stock Exchange (TSE) main index plunged by 123 points today and stood at 71,998 points, Tasnim news agency said Sept. 6.
TSE shareholders experienced an 8.7 percent loss on average last week, up 1.6 percent compared with two weeks ago, ISNA news agency reported Sept. 5.
The value and the volume of transactions fell by 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 by 21 percent since early this year.
The TSE P/E ratio is currently about 5.6, down 21 percent from 7.6 in the beginning of the year, ISNA news agency said on Aug. 29.
Generally, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E.
TSE's main index (TEPIX) rose by 110 points on Aug. 23, reaching 74,000 points.
Iran's 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.