An order to increase the stock market was issued/Indexing in the government week? – Tejarat News

According to Tejarat News, from the 2nd to the 8th of Shahrivar month, government week has been named. The government generally tries to publicize its achievements and draw favorable conditions during this period of time. This behavior of the government has found another expression in the stock market this year. While the Tehran Stock Exchange has been in decline since the middle of May and was facing stagnation and collapse, it has suddenly risen at the same time as the beginning of the government week.

Downhill stock market from May to government week

It was the 17th of May when the total stock market index fell by 3.75% in just one day and more than four thousand billion tomans of real money was removed from the market. On this day, the equal weight index also decreased by 3.5% to report the strong and integrated decline of the stock market.

It is interesting to note that the experts believed that this period of time is probably the beginning of the market correction period after the uniform growth that started at the beginning of the year. Accordingly, the fall of the 17th of May was considered as the beginning of the correction process of the market.

Later in July, it became clear that at the same time, the Cabinet of Ministers approved the increase in the gas feed rate of petrochemical companies from five to seven thousand tomans, and the information rent has marked the heavy supply of stocks on the 17th of May. The downward path that was taken until the first of September and the value of the stock market is greatly reduced.

During this period, the value of retail transactions decreased to the level of three thousand billion Tomans, and on most days, the volume of retail transactions was 6 to 7 billion shares. At the same time, the analysis of the behavior of the total and equal weight indices also indicated the inability of the market to create a trend.

In the days of the market decline and when the value of the shareholders’ capital decreased more and more every day, the struggle between the parliament, the industries and the people of the market continued with the government over the feed rate of petrochemicals, and the traders stopped buying and selling in fear and hope. In this way, as a result of the government’s wrong decision about the feed rate of petrochemicals and the injection of contradictory news about the amendment of this decree, the stock market fell into a heavy recession trap that continued until the 1st of September.

Charge the stock market by injecting news feed

On the 31st of August, the Minister of Economy, Ehsan Khandozi, announced in a statement in the hours after the stock market trading that positive news is coming for the stock market. This short news made the stock market optimistic about the amendment of the government’s decision; As a result, the transactions of the next day, 1st of Shahrivar month, were positive and the total index grew by 0.43%. The outflow of real money also decreased and in this way, the negative atmosphere of the market was softened.

This trend continued at the beginning of the new week, although the value and volume of transactions were still small. However, during the past two days, the value of transactions has exceeded seven thousand billion tomans and the volume of transactions has again reached over 12 billion shares. Especially yesterday, Khandoozi also announced the details of the good news of the stock market and it became clear that the feed rate of petrochemicals has returned to the formula of 1994 and this method will continue until the end of the 7th development plan.

Based on this, the good news that the Minister of Economy could have announced weeks ago and change the state of the stock market, was announced right on the eve of the government week and in a drop-by-drop manner to keep the stock market green at least during this week!

But is this rise the start of a trend in the stock market, or with the end of the government week, the version of the stock market will be complicated and the stock market will return to the dark room of the government?

Read more reports on the capital market page.