Weekly analysis of the stock market trend / increase in the level of market uncertainty and confusion!

According to Tejarat News, Total stock market index The last week closed at 1 million 471 thousand units and this week it reached the range of 1 million 443 thousand units. These figures indicate a 1.90% drop in the total stock market index.

Alireza Mohammadi Ziveh, a capital market expert, said in a conversation with Tejarat News: Exchange For the sixth consecutive week, it is in a completely downward trend. In this situation, technologists have gone back to their predictions. In the pessimistic scenario, by drawing supports and losing each; They declare a lower height for the total index.

He continued: Of course, maintaining support can also strengthen the hope of a temporary return. But the situation of the first week of August, contrary to public expectation, was a complete disappointment for the stock market activists. With the end of the assembly season and the return of most of the symbols to the board, as well as the remarkable report of the spring season of the companies; It was expected that we will witness the return of balance to the market from the beginning of August.

The worst week of the stock market was recorded

This capital market expert explained: Contrary to expectations, the stock market this week registered its worst performance since the beginning of 1401. So that the total index of the stock exchange ended its work this week with a drop of more than 30,000 points and a negative return of two percent in the range of 1,443,000 points. This downward trend started from the last week of June and at the same time as the failure of the main indicator of the market to enter the channel of 1.6 million units and continues.

He stated: The equal weight index also had similar conditions and recorded an even greater drop. In the 18th trading week of the year, it continued to move downward and dropped by 15,000 points, equivalent to 3.7%.

He added: At the same time as the stock market indicators drop, we also see a drop in the value of transactions and the volume of transactions. The current and pathetic conditions of the value of transactions, whose importance has been pointed out many times since the beginning of the year and at the same time as the upward trend of the stock market. It is the result of shareholders’ lack of trust in the stock market. In fact, a set of factors and decisions of the economic policy maker, including the continuation of the price control policy and the failure to resolve the issue of mandatory pricing; Suppression exchange rate In the Nima system, the recent increase in interbank interest rates have gone hand in hand and boosted investors’ mistrust of the market. with distrust of market participants; A major part of liquidity has not gone to the stock market. Simultaneously with the drop in the value of the transactions, the recessionary trend dominates the general atmosphere of the stock market.

Is the capital market suitable for investment?

Mohammadi further said: the recessionary conditions prevailing in the market, such as last year’s autumn and winter, have caused despite the value of the prices; Let’s see low-value transactions and also a drop in prices. In addition to the value of the prices, checking the reports of the spring season, there is news of an improvement in the situation Profitability of companies compared to the same period last year. In fact, the performance of companies in the spring season is such that assuming its continuation in other seasons, the stock market can be introduced as one of the best investment options. But the lack of confidence of the activists in the market and the lack of liquidity injection and the drop in the value of transactions; It has made the market out of efficiency.

He explained: In addition to the internal factors affecting the stock market; The discussion of global prices can also be investigated. It seems that the lack of stability in the global markets (especially in refined products) and the possibility of prices falling again (due to the contractionary packages of the world banks in order to control the increasing inflation) are the reason why the shareholders are watching the market for the time being, despite providing appropriate reports and also the value of the price.

This capital market expert finally said: The effect of exchange rate fluctuations from the place of diplomatic news is also involved in the market trend. The discussion of the return of the negotiation parties and the limited opportunity to revive it is heard from the Western and European sides. The position of the diplomatic team of our country is also important and the currency market will still wait for the final decision.

Read the latest capital market news on Tejarat News Stock Exchange page.