Exchange; The most valuable investment market in 1402 – Tejaratnews

According to Tejarat News, the stock market started the year 1402 with an upward trend, but this growth turned into a steep slope from the middle of May, which is lower than the market value of most shares. However, the stock market has been rising again for a few days, but the value and volume of transactions have not yet reached a level that can be interpreted as a signal of “exiting the recession”.

However, according to capital market analysts and economic experts, most of the capital market shares are so valuable that it can be said that this market is now at the level of value and can be the best investment market this year. Ali Saadoundi discussed the current and future situation of parallel markets on Instagram live on Sunday night with Tejarat News.

The stock market is cheap

Stating that currently the only asset market that is valuable is the stock market, and it is in equilibrium compared to other markets, this economist said: “I have already emphasized that the stock market is currently cheap; In the sense that cheap stocks are found in the market.

In response to the question of what the value of the stock market means, he stated: “If we buy a stock, in the long run, its yield can compensate for the initial liquidity.” Currently, about 100 shares of the capital market are considered valuable shares, 200 shares are balanced and the rest are worthless.

Saadoundi stated: “Currently, stocks must be examined on a case-by-case basis, and a certain industry cannot be identified as a valuable industry. Because powerful stock market industries such as petrochemicals, refining and steel have been shaken because on one side the price of raw materials has gone up and on the other side the prices of products of these industries have decreased in the world markets. For example, these industries are currently facing the problem of food and electricity.”

He added: “In addition to these problems, political problems have also plagued the stock market industries so that people dare to target the industry in order to strengthen the boycott belt, which has also increased the systematic risk.” But in general, the most important risk for stock market industries is the risk of global prices.

Saadoundi said: “In this regard, the advice to the authorities is to support your industry in the situation where global prices are against your industry. An example of this is petrochemicals. For example, when the price of petrochemical products is decreasing in the world market, why is there a need to increase the price of petrochemical feedstock?

This economist stated: “The same thing happened with the tire and rubber industry in 1400. At a time when this industry was at the level of importance and we even mentioned it in a workshop, a few days later the ministry of Fakhima Samat canceled the permission to increase the price of rubber and brought the work to the point where this industry was on the verge of bankruptcy. At the moment, there is no compassion in the ministry!”

Is the government piggy bank?

Saadoundi added: “The previous government brought the work to the point where out of 700 companies in the market, there was not a single company that was considered cheap or even at the price, and all companies became expensive!”

In response to the question whether the 13th government considers the stock market as its piggy bank, he said: “The important point is that it would be great if the government looked at the stock market as a piggy bank. I have had this advice for years. What is the size of our market now? According to the size of the market, the volume of daily transactions is 20 to 50 hemats. From this amount, if the government can sell bonds or even stocks for two or three thousand billion tomans a day to cover the budget deficit, it would be great.”

Saadoundi emphasized: “Of course, this is not a long-term solution, but if the structure of the stock market had been modified in the long term, by the way, the stock market could have been the government’s piggy bank for 10 years, but the problem is why the government does not have a piggy bank on this market!”

He added: “I wonder what they are thinking and what is in their mind? The government can finance its entire budget deficit from the stock market by selling bonds. The budget deficit is not more than 500 thousand billion tomans! This year, the government could cover all of its budget deficit from the stock market, but on the condition that the structure of the market changes and we go towards a professional market. Provided that people cannot intervene in the market, cannot sell signals and give signals in the direction that some stocks are queued for buying and selling. Or if the queue is sold, headlines are done! These should be corrected, unfortunately, they came and went one after the other and did not take a single step to stop this situation.

This economic expert stated: “Now what is the result of this situation?” That the market is one-sided. It is either ascending or descending; When it’s down, it’s solidly red, and when it’s up, it’s solidly green, and this is the most obvious sign of an inefficient market! I have not seen such a market anywhere else except Iran. Therefore, it can be said that this market is not predictable; Because the market in Iran is one-sided. In the sense that either everyone is on the buying side, or the prevailing market atmosphere is on the selling side.”

Is the stock market up until the parliamentary elections?

He continued: “However, I hope that the stock market will rise until the parliamentary elections.” Because the stock market also has this ability and there is enough liquidity in the society to enter the capital market; But a middle or high-ranking manager may decide to crash the market again! What happened in May was different from this? Therefore, the systematic risk of the market has unfortunately increased both the economic decisions of the government and the management of the capital market; However, the task of market management is to reduce systematic risk.

Saadoundi added: “The management of the market was expected to take the lead that provides the tools of rent-seeking in the stock market. remove various systems that are outwardly for government control and inwardly for rent-seekers; “Now the controls on the price are in favor of increasing poverty and disrupting the markets.”

He emphasized: “But worse than this is the state of the government’s economic policy, which interferes in the pricing of goods and is proud of this policy; What do you think these shameful systems are created for? On the surface, it is for the control of the government and the control of special institutions, but on the inside, it is for extortion and rent-seeking, in other words, theft, and this information is used so that certain people who have access to this information can gain huge profits in the free market. As far as I have observed, the people who get these big benefits, despite the fact that they may have a commitment to the country, but in the end, they take these resources out of the country, and this unfortunately puts pressure on the currency market.

This economist stated: “As a result, it can be said that this type of control that is carried out on the market is completely destructive and detrimental to Iran’s economy. It is detrimental to poverty alleviation and increases inequalities and increases inefficiency. As you have seen, the policies of the Tadbir and Omid government, which were very destructive, have unfortunately intensified in the government of the underprivileged Mr. Hojatul Islam Raisi!

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