The bloody days of the capital market / What was the reason for the fall of the stock market today?
According to Tejarat News, the total index of the stock market fell by 17,354 units at the end of today’s trading and marked a bitter day for the shareholders. In this way, the red days of the stock market continued. But what was the reason for the fall of the stock market today?
Market disregard for positive signals
Currently, the fundamental factors in the stock market can change the bad situation of the shareholders. However, traders seem to ignore these positive signals.
The quarterly reports of many listed companies indicate the good condition of these companies. The growth of companies’ profitability, as well as the development plans of some of them, can indicate their good situation in the future. But not only is there no demand for these companies in the market, the suppliers are giving shares in the Golan market.
On the other hand, the growth of inflation in recent months has not been able to turn the stock market green. The inflation that broke the record in July and there is no hope for its improvement.
One of the reasons for the stock market’s inattention to these signals is the lack of trust among the people of the market. Many people who were invited to the stock market in 2018 and 2019 have experienced heavy losses. Because of this, these positive signals are not capable of regaining their confidence and returning people’s money to stock trading.
The reduction of interbank interest did not work either
One of the demands of the people of the capital market in the past days was to prevent the growth of interbank interest. The stock exchanges, who considered the increase of this rate in the past months as one of the factors of the stock market drop, protested this issue many times. In response to these protests, the government and central bank On August 6, they reduced the interbank interest rate from 21.31% to 21.13%. However, not only did the market not react positively to this, but today marked one of the heaviest drops in the past few days.
The heavy shadow of negotiations over the stock market
One of the most important ambiguities that have always existed around stock market transactions and raised the risk of trading for stock markets is the future of nuclear negotiations. Negotiations that have cast a shadow on the stock market for months and any negative news about it will cause a strong reaction on the stock market. As long as the conclusion of these negotiations is prolonged and these uncertainties continue, the negative reaction of the market will continue.
Was the reason for the fall of the stock market today technical?
According to experts, the technical condition of the market was also one of the causes of the fall of the stock market today. Technicians believe that examining the trend of the total index indicates its continued decline. Technical analysis gives this signal to the market that the next target of the total index is the level of one million and 350 thousand units. In this way, sellers have been scrambling to avoid losses.
Reopening of Red “Shefan”
One of the causes of the stock market crash today was the reopening of the Fanavaran petrochemical symbol. After stopping trading on the 3rd of August due to the holding of the Annual General Assembly, the Shefen symbol was reopened today. This reopening, however, resulted in a 28% drop in the price of the “Shefan” symbol. In this way, the “Shafen” symbol alone reduced the total index by more than two thousand and 500 units.