What was the main reason for the 6% drop in the stock market?

Doubts are rife among traders, according to Trade News. It seems that many investors are currently trading and waiting for some effective risks to be identified. Where, despite the fact that sales queues are not heavy, the value of retail transactions has been significantly reduced.

Evaporation of Tehran Stock Exchange Autumn Profit

The general index of Tehran Stock Exchange, following the downward trend that had started from the beginning of the week, also left the 1.4 million super channel yesterday. With this record, the stock market’s autumn profit came close to zero. The overall stock index ended the first two weeks of the fall positively, but overall retreated more than 60 percent this week to limit the overall return on the indicator to 0.8 percent in the fall.

The value of transactions is still declining and the real ones have not stopped selling. All these negative figures come at a time when there is no news of heavy sales in the market, which shows that the stock market has not yet entered an emotional phase and is more waiting for the assignment of some ambiguities.

Regression after two weeks of green

The last trading day of the week was followed by following the continuation of heavy supply by traders, after 12 days of fluctuation in the channel of 1.4 million units, the main indicator of the market fell by 1.5 percent and retreated to 1.397 million units. The market, like most workdays this week, was faced with real sellers yesterday; So that the net change of ownership of the stock exchange industries indicated the transfer of 660 billion Tomans of shares from the portfolio of small shareholders to the portfolio of legal investments.

According to statistics, part of the market law these days is from applicants to buy shares in domestic and foreign industries. Investors from small and medium-sized companies to commodity-based Saadatabad Hall are included in their investment portfolio. These traders had a net purchase of about 111 billion tomans from the group of petroleum products yesterday. Net purchases of 80 billion tomans from the basic metals industry and a little over 61 billion tomans from the bank group are just a corner of their Wednesday activities.

Indifferent or waiting?

The value of retail transactions on the Tehran Stock Exchange reached 3151 billion tomans on October 12, 1400, to continue to report a weak trade.

Thus, while there is no news of heavy ranks on the side of buying and selling stocks, the lack of value of small stocks indicates the absence of traders. It seems that there are still ambiguities about the optimal choice of investment options for capitalists.

Regardless of the basic supports

Meanwhile, the big ones of Tehran Stock Exchange, despite the favorable trend of global markets, continue to fluctuate in a downward trajectory. Trading symbols are equally affected and also fell 2.19 percent on Wednesday.

The consequence of these declines can be clearly seen in the value of Tehran Stock Exchange transactions, so that we follow the decline of this indicator following any wave of decline in the market.

Zinc and aluminum products set new records in the global market yesterday, but most companies operating in metal groups and other related groups were in the red.

In the petro-refining industry, although we have witnessed supportive instructions from the Ministry of Petroleum in the discussion of feed refineries, and petrochemicals have been on an upward wave for some time due to the improvement of global markets, but for a few days now the stock market pays no attention to them. Has separated.

Follow the margins

According to some capital market experts, although companies are fundamentally growing potential and rising commodity prices in global markets can also act as a lever to climb stock indices, investors now face other ambiguities.

Part of the ambiguity in the building of the stock exchange organization. Although the Peasant of the Exchange and Securities Organization, according to him, is spending the last days of his management in this institution and speculations about his replacement are heard from the heart of the capital market, these days, stockbrokers often prefer the new market to a new one. Move to the cane.

These shareholders, who make up the two legal and often real market spectrums, prefer to park the liquidity from the sale of shares in their account with brokerage firms or tradable funds in order not to specify the policy of the new helmsman.

Overreaction to the process of American banknotes

Although there is a possibility of leaving the 27,000 Toman channel in the free dollar market, the dollar exchange rate has not changed much. In this regard, some market experts believe that the drop of several hundred tomans of free dollars can not have a significant impact on the financial statements and monthly performance, especially the six months of companies, because companies often close their accounts at the rate of 25 thousand tomans.

However, the fact that the momentary changes in the dollar are very important for a group of investors active in the glass market can not be ignored, because these traders believe that currency signals from different economic and political events send them pulses in buying and selling. Selling stocks can have considerable weight.

Regardless of whether or not such a trading strategy is effective for investors, the stock market has become somewhat overly sensitive to political news these days, reacting quickly to routine visits between diplomats in the country and other neighboring countries. Gives.

Although a special agreement has been reached since the meetings and the improvement of relations is only speculative, the stock and foreign exchange markets, as always, have been anticipating possible events. The share of 89.3% and 89% of the price drop among the symbols traded on the Tehran Stock Exchange and OTC Iran is also a proof of this issue, the declines that have continued for some time.

Refining Account Day

One of the major events that took place during last week’s trading was the release of the refineries’ financial reports, which were significantly later than usual. The refineries’ quarterly financial statements were finally posted on Cadal’s website after a while to answer at least some of the ambiguities of stock market participants about this news-making industry.

As mentioned earlier, the delay was due to a lack of clear feed rates for these companies since the beginning of the year. In recent weeks, it has finally become clear that, according to the relevant policymakers in this field, refining companies can receive the raw materials they need from the refining and distribution company of petroleum products, instead of receiving their feed from the FOI Gulf Company with a 50% discount compared to last year. Get a $ 5 discount from this company.

Positive market reaction

Meanwhile, the market reacted positively to the change and received a significant increase in the profitability of refineries at the time of this report to Phalanx.

Accordingly, during the trading days of recent weeks, we have seen that refineries have been able to show themselves well on the growth of the stock market index, but published reports on the quarterly performance of these companies (only four of them have been published as of this writing) show that The increase in profits in some of them was not much different.

Function of some symbols

Surveys show that among the reports submitted by these four companies, the trading symbol “Shepna”, which belongs to Isfahan Oil Refinery, not only did not increase compared to the previous quarter, but also decreased by 32%. This negative change is due to the fact that since the first quarter of last year, compared to the current year, the cost of operating income has increased by 234%. This has become a nightmare so that with a 106% increase in administrative and sales expenses, there is no more room for the company to grow its profitability.

Shepna’s poor performance, however, has not spread to other companies. An examination of the performance of other companies shows that symbols such as “Shebander” and “Shabriz” have performed well during the first quarter of this year, so that according to the reports, Shabriz has a net profit of 300% and Shabndar has a net profit of 1860% compared to the same period last year. More has happened before.

Meanwhile, during the mentioned period, the profit per share of “Shepna” has decreased by 32%. Of course, it should be noted that the trading symbol of Lavan Oil Refining Company (Shavan) among all refining symbols appeared with a significant difference and was able to earn a net profit per share in the first quarter of this year compared to the same period last year 695% Increase.

Wednesday stock market through statistics

On the day when the general index of Tehran Stock Exchange fell by 1.5 percent, out of 347 traded symbols, the closing price of 31 shares (8.9%) was positive and 310 shares (89.3%) were traded at negative levels. In this market, 15 symbols (6%) formed a purchase queue worth 267 billion Tomans, but in contrast, we witnessed the formation of a sales queue in 73 stock symbols (7%) worth 389 billion Tomans.

On the OTC market of Iran, however, on the day that Ifex recorded a decline of 2.03%, 144 symbols were traded, among which the price of 16 shares (11%) was positive and 128 shares (89%) were negative. In this market, 5 symbols (3%) formed a purchase queue worth 22 billion Tomans, but 46 symbols (32%) also faced a sales queue worth 108 billion Tomans.

The base market also hosted 132 symbol trades yesterday. Among them, 25 shares (19%) remained positive and in contrast, we saw 97 shares (73%) in the negative range. In this market, 20 symbols (15%) formed a purchase queue worth 32 billion Tomans and the sales queue in this market was allocated to 68 symbols (24%) with a value of 209 billion Tomans.

Source: the world of economy

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