Stock market forecast for Sunday, August 1, 1402/ The heavy shadow of fear on the stock market – Tejaratnews

According to Tejarat News, the stock indices were under the pressure of the suppliers since the beginning of the market on Saturday. The downward trend of the indicators of the glass hall continued until the end of the trading day of the first day of the week. On the other hand, the largest amount of money inflow in the Saturday market was allocated to fixed income funds. By examining these two data together, we can conclude that people in the capital market are still hesitant to buy.

Stock exchange transactions on the last day of July were still affected by the feed rate of seven thousand tomans; So that the main index of the glass hall faced a drop of 32 thousand and 381 units, which is equivalent to 1.65% of this index. Accordingly, the total index stood at the level of one million and 983 thousand units at the end of trading.

Unlike last Wednesday, the amount of fear in the market has decreased. In this way, in some industries that have nothing to do with the approval of increasing the gas feed rate, real money also entered. Among these industries, we can mention the group of rubber and plastic, water transportation, textile, and the transportation and warehousing industry.

However, the fear of the decisions of the policy maker is still hidden in the market body. When the phase of intense fear dominates the stock market, shareholders only think of selling shares and exiting the capital market, regardless of the fundamental and technical factors.

It should be noted that the equal weight index behaved in line with the total index and reached the level of 699 thousand 935 units with a decrease of 1.77 percent. If the equal weight index stabilizes below this level, we should wait for the continued decline of the shares of small companies.

Tehran Stock Exchange under the microscope of statistics and figures

It should be mentioned that the board of Tehran Stock Exchange shows the volume of transactions at 7.8 billion and the value of small transactions at 4.515 billion tomans. It should be noted that on Saturday, 77 stock companies went to the assembly and the shares of these companies were banned. This greatly affected the value of transactions.

Investigating the ownership statistics of real people indicates the withdrawal of real people’s capital from the stock market. The index of capital inflows and outflows at the end of Saturday’s stock exchange reports the outflow of 763 billion tomans from stocks, preemptive rights and mutual funds.

The alarm of distrust that is no longer heard

The upward trend of the stock market started in November last year. In the meantime, while the market had taken a step towards compensating for its backwardness compared to parallel markets, the decisions and interventions of institutions and policymakers have always threatened this path.

In February of last year, the story of stopping the supply of cars in the commodity exchange and since the middle of May until now the decision to increase the feed rate of petrochemicals has scared the market. It is worth mentioning that from a fundamental point of view, the P/E of the market is in the range of 8.92 in the week ending July 28. Such a ratio is considered very valuable and low risk.

But what causes the capital market to stop moving despite the market value, the inflationary conditions of the country’s economy and the good quarterly performance reports of the companies is the lack of confidence and trust in the policy maker. Therefore, both the regulator and the policy maker have the duty to take steps to restore the damaged trust of the shareholders. Once investment security is provided, one can expect rational behavior from the market and make decisions based on value measurement.

Sunday stock forecast

August has arrived for the stock market, while after two and a half months of erosion correction, the people of the capital market are hoping for a change in the trend this month. According to what was said regarding the prediction of the Sunday stock market, it can be admitted that the market will start with the continuation of selling pressure and then the risk-taking traders will buy with the price drop and the face of the market will tend to balance a little.

Read more market analysis reports on the Capital Markets page.