Stock market forecast for Sunday, June 7, 1402 / Color of distrust on the face of the stock market – Tejaratnews
According to Tejarat News, the red color of more than 75% of the symbols present in the Tehran Stock Exchange shows the strong presence of suppliers on the first day of the week. This is despite the fact that last week, the publication of the parliament’s letter to the government regarding the requirement to remove the 28,500 toman currency was considered good news for the capital market. Experts also compared the removal of this preferential exchange rate with the removal of Nima currency authority and the increase of one million in the index after that. But where is the problem? If something good is going to happen to the market, why is the market’s reaction on the first day of the week, the strong supply pressure?
At the end of the trading flow on Saturday, the main indicator of the stock market dropped by 34,716 units, equivalent to 1.48%. Finally, the total index of Tehran Stock Exchange ended its work at the height of two million and 311 units.
On the other hand, the representative of the medium and small symbols of the market also showed that the sales waves in the market are not specific to index makers. The equal-weight index of the capital market stopped at 780,815 units with 12,900 points equivalent to 1.52%.
The continued decline in the value of transactions
A look at the statistics of the stock market shows that during Saturday’s stock market trading, 14 billion 300 million shares changed hands, and this process resulted in a trading value of 10 thousand 341 billion tomans.
Investigating the ownership statistics of real people also indicates that more than one percent of real capital has withdrawn from the stock market. In this way, the capital inflow and outflow index at the end of the stock market on Saturday reports the outflow of 1,409 billion tomans from the stock market.
The decrease in the value of transactions, along with the withdrawal of more than 1.4 percent of the real capital of the stock market, seems worrying. Interestingly, these pieces of the puzzle do not match in any way, along with the positive news of the removal of the fixed rate of 28,500 dollars as the exchange rate. So where is the problem for the stock market to return to its powerful uptrend?
The long-standing suffering of the stock market from the conflict of institutions
The important news of last week was related to the currency exchange rate. As mentioned, in a letter to the government and the central bank, the parliament emphasized the need to remove the rate of 28,500 tomans as the exchange rate and called it illegal.
The government also had many reactions to this letter in the media. In an interview on Saturday, Bahadri Jahormi, the spokesperson and secretary of the government board, stated: Law enforcement and law-abiding behavior is one of the prides of this government, and the government’s approval regarding the exchange rate for calculating the feed and products of oil refining and petrochemical companies is also within the framework of the regulation law. and does not conflict with the laws approved by the parliament.
Also, Khandozi, Minister of Economy and Finance of the country, stated that the government’s decision regarding the feed rate of petrochemicals has not been annulled, but the implementation committee of the parliament has raised objections that the government should resolve. The government will soon amend the decree related to petrochemical feed rates, but it is not yet clear what amendments will be made.
The contradiction between the decision of the institutions at this level and the ambiguities that are evident in the speeches of the Minister of Economy does not allow the market to build confidence. This is not the first time that such an event affects the stock market and people’s capital. The last market reform happened at the end of January and February of last year, when the Competition Council had a problem with the Ministry of Trade and the Commodity Exchange over the supply of high-volume cars in the commodity exchange.
Currently, however, the continuation of disputes and uncertainties that are brought to the investors will only end up at the loss of the shareholders. Therefore, the heavy withdrawal of 1,400 billion tomans of real estates can be interpreted with this argument.
Sunday stock forecast
The trading process on Saturday started from the beginning with the large supply volume of the sellers and this process continued until the end of the trading period. Although the slope of the supply in the second half of the market was not as fast as at the beginning of the market opening, but we still did not see stock accumulation by buyers. Therefore, in relation to the prediction of the Sunday stock market, it seems that trading fluctuations will continue and the total index will move forward in search of a new equilibrium point.
Read more reports on the stock news page.