- After the recent jump in TEDPIX, concerns have been raised over the bubble growth of the market, warning investors and shareholders of its burst in the near future. Rejecting any kind of price bubble in the market, however, some experts hold the idea that taking the sudden growth in currency and inflation rate into account, shares are being offered at a lower value than their real value. In fact, they say that if companies in sectors such as Oil Products, Cement, Automotive, etc. were to be constructed at the current time, they would cost more, leading to higher share prices; as a result, the current prices will not create any bubble and shares will remain worthy of investment mainly based on the fundamental factors signaling a rational growth in the market. To be more specific, the predicted 5% economic growth, SMEs’ growth and development along with foreign investment have created hopes over the market rise. All in all, these practitioners believe that the 20% jump in the all-share index cannot be attributed to a bubble growth referring to the increase in market depth and diversification of listed companies and industries compared to the previous years’.
- Among sectors with the potential to lead the market in the new Persian calendar year, some financial experts believe that the Construction industry, and not the Automotive or Banking groups, will yield the highest return within the next 2 years, although predicting a correction in the all-share index in the short term which might take 2-3 months. They assume that since the respective group did not grow in line with the Banking and Automotive, as the market leaders in previous years, they have hit their lows and are ready for a jump. They also believe that the growth in this sector will lead to the growth in Cement, Tiles and Ceramics and related industries.