Forecast of the stock market on Saturday, July 31, 1402 / the confrontation of market fear against the value of stocks – Tejaratnews

According to Tejarat News, production growth requires government support for companies and policies in this direction. The government’s strange insistence on not amending the resolution to increase the feed rate of petroleum refineries sends an important message to the shareholders. This message informs about the lack of importance of the 13th government to the growth of production.

The market went through two completely different phases on the last Wednesday of July. The positive atmosphere of Tuesday last week had spread to Wednesday as well. In the last week of July, the market was finally able to go with the strong flow of demand after 9 dark days that led to a significant drop in the height of the indicators of the glass hall, in response to the considerable value of the stocks, the meeting of the Economic Commission of the Parliament and also the small positive movements of the American banknote.

While the stock market had started the last day of the week with a strong show of buyers, the news of the rejection of the feed rate amendment once again sprinkled salt on the wounds of the shareholders and a heavy wave of sales of the market industries, even those that had nothing to do with the feed rate increase, was covered. Based on this, the whole index recovered a part of its upward path and stood at a height of two million and 16 thousand units.

On the other hand, the equal weight index also grew by 9 thousand 357 units equal to 1.33 percent and reached the level of 712 thousand 539 units.

Tehran Stock Exchange under the microscope of statistics and figures

On Wednesday, the volume of shares, preemptive rights and stock funds transactions reached 9.9 billion shares, which was a decrease of 1.3 billion shares compared to the previous day! At the same time, the value of retail transactions was at the level of 6,904 billion tomans, which experienced a slight increase compared to Tuesday.

However, 73.9 billion Tomans of real money was withdrawn from shares, pre-emptive rights and equity funds, which showed that the shareholders recognized the opportunity to exit. Fixed income funds were also faced with the arrival of 100 billion Tomans of real money, which indicates the doubts and doubts of the shareholders regarding the continuation of the upward trend of the market.

Do quarterly reports reach the stock market?

The current situation clearly shows that the fear among the stock market activists is very high. The flight of capital from the market on Wednesday, along with the influx of high money into fixed income funds, confirms this well. The main reason for not starting the strong movement of the index until today is the fear that dominates the market sentiment.

The holding of assemblies along with the market price correction that started in the middle of May has brought the P/E ratios of stocks to very valuable levels. On the other hand, the expectations of the people of the capital market from the quarterly reports of the companies are very positive. Shareholders are waiting for the release of the rest of the quarterly reports, the fear caused by the government’s decisions will be removed.

Another scenario that some analysts believe is the direct entry of the heads of the three powers into the issue of approving the feed rate increase. During the recent weeks, many criticisms were raised against the government’s performance, which contradicted the slogan of “production growth”. Therefore, some experts give a lot of weight to the arrival of the heads of the three powers to deal with this issue and also its positive result for the petrochemical industry.

If this scenario occurs, the market can be considered likely to return to its upward track.

Saturday stock market forecast

According to all the above-mentioned contents, it is expected that in the coming week, the Tehran Stock Exchange will start the week with a negative flow, but in the future, with the loss of selling emotions, more logic will dominate the decisions of the market people. Therefore, it is expected that the market will show more balance in the last days of July and the first week of August.

Read more reports on the capital market page.