What’s Happening in the Tehran Stock Exchange

What’s happening in the Tehran Stock Exchange?

What’s happening in the Tehran Stock Exchange? According to Iran Gate, an examination of the buy and sell queues of stocks in the Tehran Stock Exchange indicates that the buy queues for some stocks, known as paper companies’ stocks, are crowded. But the reason why the buy queues for paper company stocks, mostly from the petrochemical sector, are crowded is an important question. Another important question is which stocks are referred to as ‘projected’ and how can they be distinguished from real company stocks?

The Tehran stock market has been a field where many shareholders and new investors have faced heavy losses over the past four years. However, this game has another side, and a small number of market participants have seen the other side of the coin of investing in the Tehran Stock Exchange. If we set aside the complexities of investing in this area, we are well aware that the Tehran Stock Exchange has deep legal loopholes that have provided grounds for some individuals or entities to exploit.

In this report, Iran Gate addresses one of the illegal methods used by some major players in the Tehran Stock Exchange. This method, which this time revolves around the stocks of paper petrochemical companies in the capital market, has put the interests of many unaware market participants at risk.

This method, known as ‘projecting stocks,’ is a type of speculation aimed at achieving several hundred percent profits by exploiting the ignorance of real shareholders or misusing insider information. Now the question arises, which stocks are targeted this time to be projected by some profiteers in the Tehran Stock Exchange, paving the way for causing heavy losses to ordinary people?

The paper stocks that were projected

An examination of the buy and sell queues in the Tehran Stock Exchange in recent days and weeks shows that six stocks from the petrochemical group have been projected. These stocks, mostly known as paper company stocks, practically have no positive returns. Stocks for which forming a buy queue was unimaginable for any expert. But which stocks are these, and what is the evidence of their being projected?

An assessment of the status of small and medium-sized company stocks in the stock market indicates that stocks like Jahrom, Darab, Fasa, Kazeroon, Mamasani, and Dehdasht have been projected. All six stocks mentioned are known among professional shareholders and stock market experts as empty stocks. The reason for this naming is their belonging to companies that are practically paper and mostly do not have a real existence.

For example, a company like Dehdasht Petrochemical and the other five mentioned are only at the level of a set that has no real production and practically has no output or productivity for its stock to have returns and profitability. Of course, the number of paper petrochemical stocks in the Tehran Stock Exchange is seven, and the Golestan symbol can be added to the list of the above six stocks. However, currently, Golestan stock has been closed for a long time, and its trades have been halted due to the unclear trading process of this stock.

How were the petrochemicals projected?

The process of projecting stocks is one of the common violations of the stock market whales in Iran. This method, considered a type of speculation, actually involves making heavy profits from artificial and fabricated fluctuations by the rent-seeking whales of the Tehran Stock Exchange. In reality, these fluctuations are created by inducing a demand shock through the sudden and unexpected injection of a large volume of liquidity into the buy queue of small and sometimes medium stocks.

This artificial shock will cause an abrupt increase in the price of the projected stocks, and the body of real shareholders in the market will think something has happened to this stock that they are unaware of. Events such as an imminent capital increase of the company, building a production line, or developing various parts of the company are among the things that can suddenly cause positive sharp fluctuations in the company’s stocks.

However, because the mentioned price increase of the projected stock symbols is unsupported and follows the liquidity injection, with the slightest withdrawal of liquidity, the price bubble of the stocks bursts. When the whales reach their desired price following the direct entry of deceived real investors, they withdraw the liquidity from this stock.

Now, it can be claimed with certainty that the six stocks mentioned have also been projected with this pattern. However, the project has not yet reached the final stage of liquidity withdrawal by rent-seeking whales, and for now, unaware real investors have created heavy buy queues. This means that at any moment when the rent-seeking whales feel that any of these six stocks have reached the desired price level, they will immediately sell the stocks and make several hundred percent profits.

After this action, the stock price will suddenly take a downward trend due to the sudden increase in supply, and because the projection of the symbol becomes clear, the stock price will go even lower than its initial range, as it loses even the minimal credibility it had.

Shareholders, be cautious

Given the explanations provided, shareholders who are hesitant about buying these six stocks should currently act with more caution and research. However, Iran Gate cannot act as an investment advisor in the stock market and provide analysis. This report is merely a revealing narrative of the coordinated and unified projection of six paper petrochemical stocks in the Tehran Stock Exchange.

A project that can be much more dangerous than usual projection cases because, in most cases, small stocks that get projected have minimal factors for their stock growth. But in this case, none of these six stocks have even the minimal desired factors, and behind their grandiose names, there is no real production capacity.

This means that after the project fails and the price bubble bursts, the stock may head towards complete failure and long-term closure. In other words, if this scenario comes true, the investments of people that were injected into this stock will be completely lost, and given the current inflation rate of over 50%, it can be said that the assets of deceived real investors will be practically destroyed.

Therefore, it is said that shareholders should make maximum efforts to research the investment factors for these stocks before standing in the buy queue for these six stocks to avoid heavy losses.