Will the upward trend of the stock market suffer the fate of 1999? – Tejarat News
According to Tejarat News, on the last day of the first week of May, the Tehran Stock Exchange gave a negative shock to the shareholders who had recently bought under the influence of the positive atmosphere of the market.
Accordingly, the main index of the glass hall faced a drop of three thousand and 422 units, which is equivalent to 0.14% of this index. In this way, the total index stood at the level of 2 million 365 thousand units at the end of today’s trading.
On the other hand, the equal-weight total index behaved against the trend of the total index and reached the level of 786,495 units with a growth of 0.65 percent.
The stock market through the lens of statistics
The board of Tehran Stock Exchange shows today’s trading volume of 28.9 billion and the value of transactions is 20 thousand 471 billion tomans (including the value of equity and mixed funds transactions).
Investigating the ownership statistics of real people indicates the entry of real capital into the stock market. The capital inflow and outflow index at the end of today’s stock exchange reports that 538 billion tomans worth of money has entered the stock market.
Since November 1401, when the current upward trend of the capital market started, the value of transactions has reached the level of 2 thousand billion tomans to the current levels (15 to 20 thousand billion tomans). Experts believe, however, the value of transactions still has room for growth and can reach the level of 25 thousand billion Tomans.
Stabilizing the value of transactions above the level of 15 thousand billion tomans shows the strength of the upward trend of the market. According to experts, despite the growth of the last 6 months, Tehran Stock Exchange is still valuable.
There are differences between the current market and the stock market in 1999!
From 1999 to the middle of last year, most investors were looking for sales. The mentality of most stock exchanges in the mentioned period was to fluctuate from stocks. Currently, however, the stock market has an upward trend, and volatility can lead to a person falling behind the growth of the market. Therefore, in such a situation, shareholding is considered a better choice.
In 1999, the P/E ratio of the entire market, including the stock market, over-the-counter market, and basic market, reached around 40 to 45. Currently, this has not happened, and the market’s P/E varies between 10 and 11, which shows the value of the capital market.
Prediction of the total index of the stock market
Most capital market experts believe that the upward trend of the market will continue. Also, a deep correction is not expected in the market because the negatives of the market are already buyers.
In recent years, many criticisms have been made on how to calculate the total index. A limited number of symbols are included in the formula for calculating the total high impact index. However, by the assembly season, it is expected that the total index will reach a height above two million and 500 thousand units.
Therefore, in this situation, from the point of view of experts, shareholding is a better decision than fluctuating from the capital market. Also, we should not neglect the importance of having proper capital management and having a personal strategy, which is the missing link to obtain stable and continuous profits from the financial markets.
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