This week, another sharp drop in the Tehran Stock Exchange Index (TEPIX) served as a reminder that some of the structural issues in Iran’s main capital market need to be addressed.
Since the beginning of the current Iranian year (March 21, 2014) the TEPIX has dropped by 8% — a fact that has worried Iranian investors. Though this week’s sharp decline (2.5% drop on June 14-15) came to a halt on June 16, concerns remain that further fluctuations will undermine Iran's capital market. The most recent drop also indicates that the government’s April 2014 decision to inject some liquidity into the market was just a short-lived remedy that failed to address deeper structural shortcomings.
