A 5.5% drop in the TEDPIX on the Tehran Stock Exchange (TSE) saw the benchmark index drop 69,000 points to 1.221mn in the Iranian calendar week to November 13.

Considering the index for the first time made it past the 2mn-point threshold in early August, the bursting of the bubble and descent have been dizzying for investors, especially retail investors who faced with a collapsing Iranian rial (IRR) and other rotten investment prospects caused by heavy US sanctions turned to the bourse in the hope that decent returns were on offer.

Prior to the latest weekly drop, the TEDPIX recorded a slight weekly gain of 2,000 points, or less than 1%.

There has been little movement in the severely depreciated rial versus the dollar even since it became clear that Iran’s nemesis, US President Donald Trump, was defeated in the November 3 presidential election. There are hopes that President-Elect Joe Biden will offer Iran a way out of its economic crisis, but any big change is not expected to occur overnight. Even the jockeying as to whether the Biden administration and Terhan will agree to talks could be prolonged.

During the past week, on the TSE the indices of Iran Khodro Group, Saipa Group, Bank Saderat Iran, National Iranian Copper Industry Company, Mobarakeh Steel Company, Bandar-Abbas Oil Refinery, Tamin Cement Investment Company, and Abadan Power Generation Company were the most traded indices, according to the Tehran Times.

Renewed commitments from the Iranian government to privatisation plans helped attract more retail investors to the TSE from early this year. However, the story proved overcooked.

In recent weeks, ministers have attempted to reassure investors that there will be a wave of privatisations that will make local stock market investments good longer-term bets.