In search of lost trust in the stock market

For some time now, the capital market has been unhealthy, and shareholders have seen their assets depreciate every day as they review their portfolios. The successive reddening of the Tehran Stock Exchange sign was one of the signals from investors to the government that the policymaker must be determined to return confidence to the capital market. Finally, on December 20, the Minister of Economy presented a 10-item package to solve the problems of the stock exchange. Among the clauses of this plan is a 5% reduction in taxes of manufacturing companies and the allocation of 30,000 billion tomans to the capital market stabilization fund. However, following the sharp drop in dividends in recent months, many investors in the stock market are now known as losers.

According to Vatan-e-Amrooz, last week, the Tehran Stock Exchange index was able to record a growth of more than 3% after a long time. This rare phenomenon occurred in 1400 following the announcement of the Ministry of Economy’s 10 support package. The capital market has been declining in recent weeks and the failure of the support of 1.3 million units of the total stock index caused many shareholders to be disappointed with the return of the capital market to the uptrend, but with the release of positive budget news, the Minister of Economy presented plans to support production. And stock exchange companies and the Vice President’s economic statements on supporting the capital market provided the basis for a reversal of the overall index.

If the capital market maintains its upward trend in the coming week, it can be hoped that the capital market liquidity problem will be solved with the re-entry of real shareholders into the market. In fact, with the real support of the government and the determination of the Ministry of Economy and the Exchange Organization, trust in the capital market will return, and this will provide the basis for stock growth.

In the past few weeks, many market experts have believed that the government has not fulfilled its promises regarding the stock market, in other words, it has abandoned the capital market, but with the approval of the government’s economic headquarters on the capital market, the government seems to be pursuing its plans. Stock support.

Capital market stabilization fund in the budget bill

For the first time, the issue of the capital market stabilization fund was included in the budget bill, and the government anticipates that it will return the tax revenue from the transfer of shares to the market through the stabilization fund.

Daily calculation of companies’ financial statements

Applying exchange rate based on 3% of the average rate of Nima system is another transparency that is shown in the financial statements of some stock exchange groups, especially banks, and the shareholders of this industry can largely calculate the effects of exchange rate.

Reduction of corporate income tax rate from 15% to 5%

The reduction of the corporate income tax rate from 15% to 5%, which has been unprecedented in the last few years, not only indicates the support of production and the capital market, but also the government with this clause showed the support of production, which can have a positive impact on Exchange companies are involved.

Presence of the head of the stock exchange organization in government meetings

One of the other points of the 10 stock exchange resolutions of the economic headquarters is the presence of the head of the stock exchange organization in the meetings of the economic headquarters of the government. In fact, this shows that the capital market will play a greater role in the country’s economy than ever before. Deciding on the presence of the head of the stock exchange organization in these meetings shows the importance of the capital market for the government.

Marketing of shares of state-owned companies

One of the main problems of the capital market when offering shares of state-owned companies in the stock exchange was the lack of marketing of those shares in the market, which reduced liquidity in the market, severely reduced the price of these shares during the market reform process and heavy losses of small shareholders in the market. Been.

Allocating 5% of the initial public offering amount to the marketing of that company’s stock can go a long way in resolving the stock’s problems.

Decrease in the issuance of debt securities in 1994

One of the challenges that the capital market faced in the second half of this year and the first half of 1940 was the issue of issuing bonds. The issuance of government bonds increased the pressure on the primary market and disrupted the secondary market.

The reduction in the amount of debt securities issued by the government in 1984 compared to 1994 could, to some extent, alleviate one of the major stock market problems faced by shareholders in previous years.

Does the outflow of money stop?

The trend of withdrawing money from the Tehran Stock Exchange in the last year and a half has gone far beyond the lack of market value. This statistic clearly shows the lack of trust in the government and major market players. This trend has continued to be pursued vigorously in recent weeks, and the amount of money that has been listed on the stock exchange since the beginning of 1999 has remained virtually zero. However, on the last trading day of last week, the net inflow of real money exceeded its outflow, which if this continues in the coming week, we can hope to stabilize the uptrend in the capital market.

The return of the greens

One of the notable events in last week’s trading statistics was that the green trend was taking place in the majority of the stock market and the growth of the index was not tied to the rise of a limited number of symbols. In the language of numbers, on the last trading day of the week, 688 symbols were out of 824 symbols of the entire green stock market, which could indicate a systematic change in the market.

Industries won the last week of December

If we look at the performance statistics of various industries in the capital market, last week only 7 industries did not taste the taste of climbing, and most of these industries were in small and small groups. In contrast to the highest growth, in the single group, the symbol of leather products was found, in which the national symbol is present. After that, the group of communication devices had the highest growth with the presence of 3 symbols of Lapars, Lekma and Lepiam, which was clearly responsible for the growth of the index of this group of Lapars symbol. Large commodity groups also generally experienced mild and reasonable growth.