TEHRAN – Iranian Capital Market Analyst Soheil Kolahchi believes the stock market is not going to go through many ups and downs over the next six months and the market is expected to follow a stable trend.

“In the coming months, the market will not fall heavily, but we also can’t expect the index to enter an uptrend soon,” Kolahchi told IRNA on Sunday.

Pointing to the recent decline in the Tehran Stock Exchange (TSE) main index, the expert said: "The stock market is in a good condition both technically and fundamentally, but despite the positive measures that the Securities and Exchange Organization (SEO) has put on the agenda to improve the market, it is still following a downward trend; and this has increased the shareholders’ skepticism and anxiety.”

He noted that the Iranian stock market is usually negative during the last Iranian calendar month of Esfand (February 19-March 20) and that is a normal trend for the country’s capital market in the last days of the year.

“Because most of the companies active in the market are looking for selling their shares and somehow turn their assets into liquidity by the yearend,” Kolahchi explained.

“We look forward to a positive trend of trading in the next year, he said, adding that the market is now in a very good condition for growth and we can hope for positive days in the stock market and improve the situation in the coming months”, he added.

In late December 2020, the vice-chairman of TSE’s board of directors had said that the stock market will spend the last months of the current Iranian calendar year (ends on March 20) calmly.

Mentioning investigation of the periodical (six-month and nine-month) reports of the companies’ performance, Javad Eshqi-Nejad said that given the foreign currency exchange rate situation and the appropriate sales volume, in this period, almost the expectations of listed companies have been met and positive results have been provided for the capital market.

Regarding the continuation of the stock market trend in the first three months of 2021, he said: “In this regard, the main issue is political relations and international behavior; We seem to be achieving good results in the international arena.”

While predicting that the stock market will be calm in the last months of this year, he said: "But for the next year, according to the budget, we may face new events whose analysis can have special effects on various industries; in a way that these effects may be associated with some industries for the next 2-3 years.”

EF/MA