How long will the stock market decline continue? / Bazaar on the floor of 1401
According to Tejarat News, the Tehran Stock Exchange continued its downward trend in recent weeks and is on the verge of breaking the bottom of the index in 1401.
The total index of the Tehran Stock Exchange today, 20 September 1401, faced a drop of about half a percent. The decrease of 6 thousand 649 units of the index broke the lowest figure of the total index in 1401. Tehran Stock Exchange reached the bottom of this year by registering a range of 1,390,000 units. In other words, the total index, with a drop of more than 6 thousand units, recorded the lowest level in 1401 today. Equal weight index also returned 2544 units to the range of 403 thousand units.
A reminder of the bitter days of 99 for shareholders
The Tehran Stock Exchange has witnessed a continuous and uninterrupted decline in the stock market index in the past weeks. The shareholders’ protest against the current conditions of the stock market has intensified and it seems that the market situation in the coming days will not be very promising. Some rumors also indicate the strong dissatisfaction of the people of Bursa on social networks. The complaint of these shareholders is the government’s continuous interference in the internal affairs of the market and they believe that the thirteenth government is responsible for the current state of the stock market.
By looking at the comments of stock market users in the virtual space, you can see the similarity of the atmosphere ruling the market with the summer days of 2019. A summer that was accompanied by a sudden and surprising drop in the total index and, as a result, the stock market, and faced many new shareholders with very heavy losses. Of course, Tehran Stock Exchange does not host new funds, but there is a lot of similarity between the current market situation and the dark days of 2019.
Now there are whispers of the will to resume the stock market rally. The gatherings that reached their peak in the winter of 1400 and a group of shareholders were held every week in front of the Islamic Council building or the Program and Budget Organization. Of course, some believe that these gatherings could not have a specific effect. But some people also evaluate the approval and implementation of Khandoozi’s 10-point package to support the stock exchange due to the pressure exerted by the protesters on the organization of the program.
How long will the stock market decline continue?
According to most of the experts, the 13th government must implement the necessary measures in order to create a noticeable change in the economy. The capital market has also suffered a lot from this issue. Many people believe that the current state of the stock market is rooted in the uncertainty of Iran’s nuclear issue.
Of course, we should not forget that there are many risks around the Tehran Stock Exchange. But according to experts, the biggest market risk at the moment is the uncertainty of the agreement. However, things like government intervention in the market, unprincipled monetary policy, destructive performance of banks, inappropriate approach of the government in the field of attracting investors, etc. are among other risks of the market. But in general, experts predict that the Tehran Stock Exchange index will continue to decline until the JCPOA task is not clarified.