TSE index expected to continue rising: analyst

July 31, 2021 - 12:22

TEHRAN – A capital market analyst says that TEDPIX, the main index of the Tehran Stock Exchange (TSE), is going to improve in the second half of the current Iranian calendar month (ends on August 22), IRNA reported.

Mehdi Bayat-Manesh noted that considering the current trend of capital inflow into the market TEDPIX is expected to rise in the current month.

“It is expected that the upward trend of the market in the last one month, when the stock index rose from 1.4 million points to 1.8 million points, will continue, and it is also likely that according to the forecasts, the stock index will once again enter the 1.4 million-point channel by the end of the current month,” he said.

According to Bayat-Manesh, the government policies for supporting the upward trend of the market should continue in the coming months in order to ensure this upward trend.

“It is also better for the managers of Iran's Securities and Exchange Organization (SEO) to also take the necessary measures for supporting the market so that the stock market index can once again reach more than two million points, which takes at least a few months to happen.”

He pointed to the continuous increase in inflation rate in recent months and its effect on capital market transactions and added: “Shareholders' fears and worries about investing in the market will be eliminated by increasing government support and will increase their willingness to invest in this market.”

Following the supportive measures taken by the government, the Iranian stock market has been gradually getting back on track and experts believe that the market is regaining people’s trust.

In early July, Market Expert Reza Alavi said that the inflow of liquidity into the market and the increase in the value of transactions indicate that people are once again trusting the capital market.

“At present, other markets such as gold, foreign currency, and cars are not attractive enough for investors, and the stock market is still a good place for people's investments,” Alavi said.

“After the election debates, people have come to the conclusion that the stock market is one of the priorities of the new government, and for this reason, they have re-trusted this market, and as a result, the inflow of new capital into the market has increased,” he noted.

The analyst further mentioned the rise in the global oil prices and the stability of the foreign currency exchange market as factors that resulted in the stability of the stock market.


Leave a Comment

1 + 5 =