The weekly return of the stock market/food price frenzy hammered the last nail on the coffin of the stock market
According to Tejarat News, the increase in the feed rate of petrochemicals continues to affect the stock market. The supportive position of the Chairman of the Economic Commission of the Majlis and the news given by the Minister of Economy, Ehsan Khandozi, that he will take the decision to increase the feed rate to the Cabinet for correction, pushed the market to a positive direction since Monday.
In this way, the Tehran Stock Exchange increased by more than 43 thousand units on Tuesday and witnessed the arrival of 990 billion Tomans of real money. This process continued until 11 o’clock on Wednesday, but exactly at this time and while the market was experiencing a positive trend of money coming in, the government spokesperson announced that the proposal of the Ministry of Economy was rejected and the government insisted on increasing the feed rate. In this way, real money entered the roundabout and left the market!
Accordingly, at the end of the week, the total index experienced a 2.6% weekly drop and the weighted index experienced a 1.6% weekly drop. Also, the balance of entry and exit of Pol Haghigi to the market was negative and reached 1,471 billion tomans.
Weekly performance of indices
On the first day of this week, the total index of the stock exchange faced a weak drop of 513 units equal to 0.02% and reached a height of two million and 70 thousand units. The equal weight index, however, became positive on this day and increased by 0.45% to the level of 728,000 units.
On the second day of the week, however, the market situation completely changed and the total index collapsed by more than 49,000 units. The fall of the market on this day was attributed to the drop in the price of the dollar and its entry into the channel of 48 thousand tomans. On this day, the total stock market index dropped by 2.39% at a height of two million and 21 thousand units and was on the verge of falling to the channel of 1.9 million.
The equal weight index also decreased by more than 2.68 percent on this day and reached the level of 708 thousand 496 units.
On Monday and on the third trading day of the week, the market decline intensified and the total index dropped by more than 46,000 units from its height to reach 1,956,000 units with a 3.2% drop. In this way, the total stock market index lost the support level of two million units on the 26th of July and fell to the lower channel.
On this day, the equal weight index also experienced a historic drop and retreated with a decrease of 20,743 units, equivalent to 2.93%, so that this index also lost the support level of 700,000 units.
The collapse of the market on this day worried the officials. On the same day, a rumor about the strike of some traders in the glass hall of the Tehran Stock Exchange also spread in the market. In this way, the media maneuver was resumed.
At the same time, the chairman of the economic committee of the parliament criticized the state of the capital market and criticized the government’s policy of increasing the feed rate of petrochemicals. On the other hand, Khandozi, the Minister of Economy, announced the review of the food decree, and thus the stock market became positive on Tuesday.
Accordingly, on the fourth trading day of the week, the total index of the stock market increased by more than 43,000 units and with a growth of 2.2%, it compensated part of the losses of the previous two days. In this way, the total stock market index was able to reach the level of one million and 999 thousand units on Tuesday and close to the two million channel.
The equal weight index also became positive on this day and went up more than 2.25% to be placed in the channel of 700 thousand units again.
This trend continued on the last trading day of the week. Of course, on this day, ups and downs such as the rejection of the request to amend the food rate increase weakened the growth of the stock market. At the end of trading on Wednesday, the call index rose by 16,382 points, equivalent to 0.83%, to regain the two million channel.
The equal weight index also increased by 9 thousand 357 units on this day and reached 712 thousand 539 units with a growth of 1.33 percent.
The volume and value of retail transactions
On the first day of the fourth week of July, the value of retail transactions reached a disappointing level of 4,963 billion tomans. The volume of stock transactions, stock funds and pre-emptive rights also reached eight billion shares on this day. On this day, more than 303 billion tomans of real money was withdrawn from the market.
The second trading day of the week did not bring significant transactions. On Sunday, the value of small transactions with a slight growth remained in the stagnation range and the transaction ended with the registration of 5 thousand 296 billion tomans. On this day, 9.6 billion shares were traded, and real people took 953 billion tomans out of the market!
On Monday, the value of retail transactions slightly improved and reached 6,859 billion tomans. The trading volume also increased on this day and reached 11.8 billion shares. But on this day, the real ones removed 1,131 billion tomans from the market!
On Tuesday, when the market was back and the indexes were growing, the value of retail transactions did not change much and reached 6,873 billion tomans. On this day, the volume of transactions also decreased and reached 11.2 billion shares. However, buyers entered the market on this day and in this way more than 990 billion tomans of ownership was registered from legal to real ownership.
Finally, the last trading day of the week ended with transactions at a recession level and the value of retail transactions reached 6,910 billion tomans. On this day, the volume of retail transactions was 9.9 billion shares, but the market ended with the withdrawal of 74 billion Tomans of real money.
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