TEDPIX climbs 4,169 points on Monday

July 4, 2022 - 15:26

TEHRAN- TEDPIX, the main index of the Tehran Stock Exchange (TSE), gained 4,169 points to 1.507 million on Monday.

As IRNA reported, over 9.47 billion securities worth 66.678 trillion rials (about $240.25 million) were traded at the TSE.

The first market’s index rose 2,865 points, and the second market’s index climbed 8,985 points.

Iranian stock market has been struggling for months to get back on track, however various internal and external factors have been hindering this market from reaching its true potential.

According to Market Analyst Vahid Halalat, the uncertainty of the global economy in the wake of the Ukraine war, the uncertainty about the results of nuclear talks, the unclear situation of the privatization of the country’s major automakers, and most importantly, the lack of enough attention paid by the government officials to the stock market are among the internal and external factors that have caused the capital market to fall behind other markets such as housing.

Emphasizing that these factors have affected the mindset of the shareholders and caused everyone to stay away from the market, Halalat said: “Considering internal factors, the country’s major automakers play an important role in the stock market and have a great psychological impact; And since their privatization process has not been realized yet, the validity of the entire project has become questionable.”

He further mentioned the possible positive impact that reaching an agreement in nuclear talks could have on the market, saying: “We hope that the negotiations will come to a conclusion. Because in that case, it can have long-term and short-term effects on the stock market and reduce the return gap that has been created between the stock market and other parallel markets.”

The analyst stressed that the market is in a stagnated condition, adding: “If new developments occur in favor of the market, for example, a political agreement is reached or the shares of automakers are offered, it can be an excuse for the market to return to its upward trend.”

Overall, at the moment there is no expectation for the market to fall or rise. If nothing changes, the market will grow over time, he said.

EF/

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