Stock returns higher than other markets
The capital market is in equilibrium these days, and many symbols have started to rise after price corrections. But where is the capital market heading with the new government in place? And which groups can be the leaders?
The total index of the stock exchange in the past weeks with its significant growth reached the range of 1.4 million units and it seems that the next resistance of the index will be in the range of 1.5 million units. However, with the positive trend of the market and the price correction of the major symbols, we are still witnessing the lock of the sales queue of small symbols.
Market participants are currently worried about the market because if the required liquidity is not injected into the market, the market trend will not be wide. But what is the analysis of stock market experts of the current capital market trends and possible movements that may occur in the market?
Javad Fallahian, a capital market expert, told Tejarat News that the capital market has gone through difficult times. Many stocks are trading at their intrinsic value. In recent months, the symbols are at the bottom of their prices with the corrections they have made. He explained: “If there are symbols that are currently associated with the decline, it is because they are far from the market decline.
In another section, Fallahian said: “The stock market is in an upward position, but this trend is not strong and the symbols are positively rotated.” At present, we do not have sustainable growth in all industries, and the major stocks have recorded a maximum growth of 30%, and due to the major price correction in the stocks, their growth has started from the bottom.
Which groups will be in the lead?
The capital market expert continued: “In the past week, there has been a lot of interest in the petrochemical and steel industries, and the trend of other industries, such as banks and automobiles, has been unprofitable due to the unfavorable fundamental situation.” He explained: “Considering the world prices and the dollar in the future, the petrochemical and basic metals industries will be significant in the market and will give a good return to their shareholders.”
Fallahian added: “If people invest in these industries, they will have a good return in the long run, and of course petrochemicals and basic metals are among the groups in which it is safe to invest.”
He says: the government may adopt control policies and keep the price of the dollar in the range of 27 thousand tomans, but after a short break, the dollar will move to 30 thousand tomans. “Inflation periods in the country have become short, and if the new government tries to control the economic climate, we will face a hyperinflation,” Fallahian explained.
The market expert added: “It is better that the price of the dollar is not controlled by the government and allows the dollar and inflation to move in parallel, in which case the dollar will be closer to its real price.”
Which market is more productive in the new government?
In the end, he stressed: “In the current situation, the best market for investment is the capital market, and it is better for investors to look at the market with a long-term view and not engage in fluctuations in it.” Stock returns seem to be higher this year than in other financial markets.
He added: “In the housing market and other assets, it is not a good place to invest because taxes have been whispered to them.” And in the current situation, the attractiveness for investing in this sector has decreased.
Fallahian also believes in investing in the car market: with the supply of cars in the commodity exchange, the price difference between the factory and the market will decrease, and therefore the car is not a suitable market for investment. Therefore, the only market that can operate in the current situation away from excitement and have a good return is the stock market.