What is the market situation in the coming weeks / What are the reasons for the stock market growth?
According to Tejarat News, Exchange It grew by less than 1 percent last week and remained in the 1.4 million channel. This week, the record value of transactions was broken and entered the range of six thousand billion tomans. The food group was also able to become a highly sought-after industry in the market.
Mehrnaz Soltani, a capital market expert, told Tejarat News: “Considering the prevailing psychological atmosphere in the market, it seems that this ascent will continue for now.” From a technical point of view, the targets for the total index can be considered as targets of one million and 150, 590, 690 and 820 thousand units, respectively. In terms of time, the growing market trend can continue until mid-July.
“This analysis is based on current data and there is no certainty in it,” he explains. The situation also looks good in the stock market index. We can see a 20 to 30 percent growth in this index. As a result, some stocks have a higher yield than the homogeneous index.
“The stock market sees a lot of ups and downs, both technically and fundamentally, and because of the political-economic situation,” he said. Each of these factors can cause the market to collapse, so shareholders must carefully monitor market conditions.
What factors affect the stock market?
Soltani explains: Among these, there were some stocks that did not have much growth. They were even declining, and a close examination of their fundamental condition would make clear why.
“From a fundamental point of view, there are five reasons for the stock market’s growth,” he said. First, the ratio of P to E in most stocks was lower than the historical average. Sometimes we had shares with P on E 4 and even less in the market. As we know, in our market, this ratio is traditionally one of the main decision-making components in the minds of large actors and small shareholders.
This capital market expert continues: Second, the rumors and news related to the agreements and Borjam caused the automobile industry to be considered as a rial industry and to start its upward movement. The third option is the heavy jump in world oil prices affected by the Russia-Ukraine war, which led to the growth of refining stocks.
Soltani states: The fourth case in the group of basic metals also saw a good growth in the shares of the zinc and copper groups affected by world prices. The last case is the removal of the 4,200 Toman currency of medicine from the growth factors of the last few days in the pharmaceutical group.
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