Is there a serious risk for stockholders?

According to Tejarat News, the stock market has been accompanied by a decline in the overall stock index in the past two months. Prior to the announcement of the election results and the introduction of the cabinet of the main government, the shareholders of the stock exchange witnessed the growth of small and large market indices and symbols every day.

After the new ministers took office and various comments were made about the industries and the pricing of the orders about them, the index began to fall again and the shareholders were instilled with the fear of the market falling.

Nima Javadian, a capital market expert, told Tejaratnews about the stock market trend at the moment: “We have six-month reports in front of the market, and currently these reports have the greatest impact on the market trend.” Despite the good reports of listed companies and their good sales, the market is trading in a negative bubble and the influencing factors have been ineffective.

Javadian says there is no drop in sales in commodity-based stocks and the dollar exchange rate, and the situation is favorable for companies to be profitable. Accordingly, the six-month reports to be published at the end of November are effective in short-term market growth, and you will probably see a total stock index of 1.6 million units.

“The stock market is based more on public opinion,” he said. Oil prices have risen in recent days, but the stock market index has been falling. Therefore, when inflation expectations are low, the stock market also shows its decline.

Javadian said: “Many stock market experts have predicted that the dollar will grow up to 30,000 tomans, and when the two factors of dollar and inflation grow, the total stock index will see more than 2 million units.”

He added: “In the next two months, the index will see a range of 1.6 to 1.7 million units, but the risk of next year’s budget, inconsistency and uncertainty in the economic decisions of the government team and contradictory news about the orderly pricing of fear and excitement in the stock market.” Raises and increases the likelihood of the market entering a recessionary phase.

In another part about the negative impact that the government budget deficit has on the capital market, Javadian said: “Next year, due to the budget deficit and rising inflation, additional pressure will be put on companies and this issue will quickly affect the market.” Also, there is still no news of the sale of 100,000 billion shares that the government was supposed to sell, and this will probably increase the market decline.

He explained: “Next year, the government will pocket the industries due to its budget deficit and will collect more taxes from companies to compensate for its deficit, so according to these signals, the stock market will also be reformed.”

Javadian added: “There are whispers about rising energy prices.” This has been accompanied by the removal of hidden subsidies from industries, and has dealt a stronger blow to industries.

“The cost of labor, energy and raw materials will increase, while selling prices are not different from current prices, and this will reduce companies’ profit margins,” he said. Accordingly, even if we have growth, it will not affect the market, and at higher prices, market risks show themselves.

Regarding the future of the stock market, Javadian said: “Currently, current prices have not changed much, but with the increase in risks, the capital market will enter a recessionary phase and will fluctuate in the long run.” But if the dollar continues to rise, the country’s economy will become a kind of Venezuelan.

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