Who is to blame for the current stock market situation?

According to Tejarat News, a few weeks ago, on July 18, the total stock market index fell to 1.4 million channel with a slight drop, and at the end of trading on the same day, it reached the level of 1,498,000 units.

This fall was continued in the last week and caused the shareholders to enter the selling queues. This entry into the sales queues was caused by the fear of falling more. Somehow shareholders are afraid to lose more than this, as a result they prefer to sell their shares.

The fall of the stock market started on August 19, 2019 and continues. The reason for the fall of the stock market in these years can be attributed to government interventions and systematic risks. In the same year, the twelfth government decided to withdraw money from the stock market to compensate for its budget deficit, which led to the sudden collapse of the glass hall.

This withdrawal of money and the fall of the stock market caused the shareholders to distrust the capital market, and the shareholders are still distrustful of the performance of the officials in the stock market.

Welcome the market to the new channel

Last week, the stock market entered the channel of 1,400,000 units, and capital market analysts consider the reason for this to be lack of liquidity. On the other hand, the reason for the lack of money in the market is the lack of trust and fear of shareholders. If there is money in the market, the glass hall takes an upward trend.

Also, Khalq al-Saaa’s decisions have had a negative impact on the stock market, and the shareholders cannot perform in the market due to the fear of this issue.

What was the reason for the fall of the stock market in 2019?

The trend of the index in 2019, in the period that was called the golden period of the stock exchange, crossed the channel of two million after a growth period of almost six months. The downward trend of the stock market started from the middle of August 2019, and after a long decline in the winter of 2019, it went through a fluctuating movement and after a downward period, it crossed the channel of 1,200,000.

In the second half of 2009, the stock market index dropped by about 67%. Considering the fact that the downward trend of the stock market in 2019 was about six months, but the downward trend of the index in 2012 lasted for two years. We can hope that considering the stability of the foreign exchange market and the absence of unexpected political and international risks, the market correction has reached the end of the line and the total index can return to a balanced and upward trend.

According to experts, the stock market experienced a downward trend in 2019 due to various reasons. Among the reasons for the decline of the stock market in the second six months of 2019 can be the withdrawal of a large amount of liquidity in the month of August, the comments of people who did not have enough expertise. Mandatory pricing, the implementation of different monetary policies of the central bank, the emotional behavior of shareholders and the gradual decrease in the confidence of shareholders in the market. Some of the factors may be due to the prolongation of the downward market period.

In general, despite the uncertainties, it seems that the stock market will continue to fall in the medium term, and after the political and economic risks of the capital market are identified, it will find its own trend.