According to the online group of the Donya-e-Eqtesad newspaper; The stock market, on the second day of the week, spent a volatile day under the influence of the reopening of refining symbols and political risks. While the overall bourse index began today's trading in negative territory, it later recovered part of its decline, but ultimately ended with a 0.36 percent decrease compared to the previous day.
During today's trading, the equal-weight index also recorded a 0.13 percent drop, so that small and medium symbols performed better than the market's main gauge. Meanwhile, more than 2.2 trillion tomans of real money exited the stock market, and the total money outflow since the beginning of the week has exceeded 10 trillion tomans. Also, the glass hall has faced money outflows for four trading days. It seems the overall index's approach to the 8 million unit threshold, alongside selling pressure on refining symbols and the continuation of political risks, has increased traders' caution and placed the market on a path of limited fluctuations.
The bourse players' dilemma
As the overall bourse index approaches the 8 million unit threshold, caution among traders has increased. On the one hand, the publication of favorable six-month performance reports, especially in some smaller industries, can reduce shareholders' inclination to sell. The better performance of small and medium symbols compared to the overall index also partly reflects this. On the other hand, political risks and existing uncertainties are an obstacle to repeating the high-speed trend of the first half of the year.
Meanwhile, the reopening of refining symbols and their share price fluctuations put additional pressure on trading and added to the market's cautious atmosphere. Despite this, the value of retail trades remains above 45 trillion tomans, indicating considerable liquidity circulation among various symbols. On the other hand, the exit of more than 2,200 billion tomans of real money, at a time when the publication of performance reports has strengthened expectations of improved trading conditions, shows that some shareholders still prefer to act cautiously in the face of the existing risks.
Movement toward high-potential symbols
In today's trading, the number of positive and negative symbols was roughly equal. Also, about 250 symbols ended with sell queues and 200 symbols with buy queues. Despite selling pressure on refining symbols, the reception of leveraged funds and some small industries, including pharmaceuticals, food, and a number of banking and automotive symbols, showed that favorable performance reports can still influence traders' stock selection. This divergence among the behavior of different symbols indicates that selling pressure in the market is not uniform, and some investors are still seeking stocks with a suitable fundamental outlook.
Nevertheless, the Tehran bourse remains in a cautious state. The continuation of uncertainties has turned fixed-income funds into one of the destinations for investors' liquidity. In such conditions, the overall index holding the 8 million unit boundary can help limited fluctuations continue in the market. Conversely, losing this range could increase the likelihood of an intensified price correction. In this scenario, a correction in the range of 10 to 15 percent is also conceivable, although its realization will depend on political developments, liquidity flow and traders' reaction to the next support levels./
Source: Donya-e-Eqtesad
