A 3% drop in the total index this week / stock market needs a special event
According to Tejarat News, the stock market started the fourth week of November tense. Emotional sales in the market continued to decline, but the very low volume of liquidity in the market and the supply of government bonds kept the stock market alive.
This week, the total index of Tehran Stock Exchange ended with a drop of 3.1 percent and being in the channel of one million and 410 thousand units. Experts believe that unless something special happens to the market next week, the situation will not change much and it will continue to work neutrally.
Mohammad Khabarizad said: The stock market was facing several challenges last week. One of them was the orderly pricing of various goods and products whose companies play an important role in our stock market. Steel, cement, automobiles, agriculture, animal husbandry, and petrochemicals are somehow caught up in regulatory pricing.
He continued: “From the first days of this government, the Ministry of Silence was trying to release prices with the least amount of consumer protests.” But in many cases it was not successful and we still have the order pricing stick above the market.
The supply of government bonds is a disaster for the stock market
The stock market expert continued: “This week, the discussion of resuming the sale of fixed income securities by the government in the stock market became hot again. The government is in financial trouble. People connected to the governing body also said in interviews that the government has no money and even has to sell securities at the cost of damaging the capital market.
Khabarizad added: the supply of government bonds has caused the rate of return on fixed income bonds in the capital market to reach more than 24%. This week’s trading was negative in the first half. On the last two days of the week, it was initially neutral and positive at the end. These positives are small and our ultimate problem in the market is the lack of demand and lack of liquidity.
He continued: “There is no money in the market and with the offer that the government had this week, it seems that a large part of the free resources of fixed-income funds were also drawn into bonds.”
“Next week we need a strong stimulus to shake the market and pour it into the stock market,” Khabarzad said. Otherwise, my prediction is that last week’s trend will continue a little slower in the coming weeks. This means that there is still no money in the market and the market will fluctuate. In addition, we are approaching the cold season and the definite electricity and gas challenge of factories, which can also add to the challenges of the market.
The expert said: the market needs a strong stimulus, including the monthly reports of November. In addition, the elimination of the Nima dollar and the use of the national exchange rate as an export and import rate can be an important stimulus. Because currently a 30% rent from export exchange companies goes to the pockets of importers.
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