More than 107.8 trillion rials ($66.5 million) in retail money has flowed out of the Tehran Stock Exchange over the past 24 trading sessions, marking what analysts describe as a new phase of liquidity depletion driven by political uncertainty and fears of military escalation.
Habib Arian, a financial markets researcher, told ISNA that the turning point came on January 10, when the market recorded a one-day outflow of 9.4 trillion rials ($5.8 million), at the time the largest daily withdrawal of individual investor funds.
“That figure showed that trust, which is the main asset of the capital market, had been severely damaged,” Arian said. “From that date onward, the Tehran bourse was unable to return to an upward trajectory, and any positive fluctuation was treated as an opportunity to exit.”
Outflows accelerated as regional tensions intensified and speculation grew about possible confrontation between Iran and the United States. Investors shifted from equities toward hard assets, pushing the dollar above 1,650,000 rials and lifting domestic gold prices sharply.
Between January 8 and February 21, the benchmark index fell 15% while 18-karat gold posted a 33% gain over the same period. Gold-backed funds rose 20%, emerging as a primary destination for funds exiting equities.
“The 48-percentage-point gap between gold and stocks explains why liquidity has fled the equity market at this speed,” Arian said.
On Sunday alone, the main index shed another 103,000 points as retail investors pulled out a record 41 trillion rials ($25.3 million) in a single session, according to market data cited by Arian.
He said the stock market was now driven less by economic fundamentals than by political risk. “The market today is more hostage to political tensions and the shadow of war than to economic variables,” he said. “As long as geopolitical risks do not subside, the capital market will continue to act as a liquidity provider for parallel markets.”
The exodus from stocks comes against a backdrop of broader capital flight and currency weakness.
The rial has traded around 1,630,000 per dollar in recent weeks, reflecting deep structural imbalances, falling oil income and persistent uncertainty surrounding nuclear negotiations and sanctions.
Analysts say the combination of record outflows from equities, a weakening currency and rising demand for gold shows the erosion of investor confidence, with households and businesses seeking safety in assets perceived as more resilient to inflation and political shocks.
“In this environment, investors prefer the security of gold and dollar-linked assets to the ambiguity of shares,” Arian said.
