Government intervention in the markets/stock market will grow again?

According to Tejarat News, it has been a few months since the stock market started a downward trend and yesterday the index entered the channel of 1.3 million units. A capital market expert has investigated the reason for the drop in the capital market in a conversation with TejaratNews.

Nima Mirzaei, a capital market expert, said: The most effective variables on the general trend of Iran’s capital market from a fundamental point of view (with other monetary and economic policies constant) are the domestic exchange rate and the global commodity rate. In a situation where the exchange rate of Naimai reached a relative stability, the slow correction of global rates centered on oil will reduce the dominant profitability of listed companies.

He explained: About two-thirds of listed companies are export companies whose sales rates are directly affected by global price fluctuations. Therefore, due to the decrease in profit making of stock exchange companies, the desire of traders to appear on the buyer’s side will also decrease so that at least the stock price will approach very low risk points from the point of view of the board.

The effect of the agreement on the stock market

This capital market expert continued: If the negotiations enter a new phase of agreement. The possibility of a partial correction of the dollar is not ruled out, which has also caused concern for the stock market in the short term.

Mirzaei said: “Shareholders have another concern, that governments, according to an unwritten principle, focus on suppressing financial markets in the first round of their activities to control inflation.” In a way, they prevent excessive growth. The analysis of the markets shows that the markets of coins, currency and capital have fallen and have not reached their previous ceiling.

In the end, this capital market expert stated: We expect to continue to witness the fluctuating stock market along with the stagnation in all transactions. The temporary growths and booms of the market are also limited, and by saving the profit of short-term traders, we can witness the fluctuating conditions of the market. The main point here is that the possible fluctuations facing the market will have a positive outcome and due to the stability of the stock market, the prices will improve over time.