The Effect of JCPOA on the Network Behaviour Analysis of Tehran Stock Exchange Indexes

The purpose of this paper is network behaviour analysis of Tehran Stock Ex-change indexes using the minimum spanning tree (MST) and hierarchical cluster-ing. Network analysis by simplifying a complex system allows for the extraction of important and essential information from that system. In this paper, using net-work analysis the simultaneous behaviour of 38 industry indexes in Tehran Stock Exchange in manufacturing, service and investment sectors during 2011-2017 was investigated. These analyses included identifying the main indexes in the direction of moving other indexes using the MST, providing a classification using hierar-chical clustering for the behavioural similarity of the indexes as well as examining the degree of integration (behavioural similarity) of market indexes over time. The results showed that investment, automobile, industry and medicine indexes in the research period had a major role in guiding other indexes and indexes can be classified into six groups in terms of behavioural similarity. The market has also been moving toward integration of indexes since early 2015 and beginning the executive steps of Joint Comprehensive Plan of Action (JCPOA). This reflects the investors' hope for the promotion of all indexes.