Liquidity crisis has been continuously cited by market activists and analysts as number one challenge with which our capital market is wrestling. Market experts believe that uprooting recession in true sense of the word could encourage and stimulate the skeptical to bring their capitals into the market, contemplating that transparency in industry-related decisions is one of the ways to absorb liquidity and boost the market. Economic viewers are of the opinion that ambiguities regarding the listed sectors shall be removed and the transparency level in state decisions influencing the stock market should increase for which designing long term rules and regulations is a pre-requisite.
Climbing 9 steps, Persian Gulf Petrochemical Industrial Company managed to accomplish the 44th grade among the superior petrochemical companies in the world. According to the latest records by ICIS, this company was rated as the second superior petrochemical company in the Middle East. ICIS defined factors such as sales amount, return increase, and capital raise as the main criteria in this evaluation. It is noteworthy to say that owning $13,953 mn capital, Persian Gulf made $9,956 mn income and $2,396 mn profit in 2014.
Tamin Pharmaceutical Investment Company (TPICO) released its audited 12-month period financial report for the fiscal year ending May 21, 2015. Holding 2,900 IRR bn capital, this company recognized 1,032 IRR EPS while it had made 906 IRR EPS with the same capital for the same period last year, showing 14% gain. Its total revenue proved 14% increase to stand at 3,040 IRR bn; besides, its operating profit also demonstrated 14% rise reaching 2,984 IRR bn. The pharmaceutical sector has proven its profitability under the sanctions; they seem to have a more prosperous future ahead in the post-sanctions era.
In his latest interview, TSE CEO announced the best policy to support the stock market to be market transparency which can be materialized by the government and policy makers. Remarking that ambiguity is the main reason driving investors towards short-term investment decisions, he continued that no investor is willing to invest in a dull climate taking a long term outlook, since many variables might change over time and the farther future will not be predictable.
In his latest interview, the chief of Securities and Exchange Organization discussed the recent changes occurred in the capital market. Believing that the capital market mirrors the overall economic health of the country, Dr. Fetanat stated that to support it, there must be a convergence between policies adopted by different organizations of the country, namely among ministries of economy, oil and gas, defense, mines and commerce, generated by correctly and realistically analyzing the current situation.
The ratification of establishment of the stock market stabilization fund by the government led to the market activists’ satisfaction with the run of the long-expected fund to back the market at times of extreme price swings in the stock exchange, that would most likely end in grabbing investors and shareholders’ attraction to the market and secure their stakes there at periods of large market pressures as panicked investors were hit dramatically in China with shocking devaluations on their stock prices as this country did not entertain the necessary and the sufficient ammunition to tackle the inevitable slowdown in its respective economy.
Holding 2,420 IRR bn capital, Bahman Investment Company earned 2238.5 IRR bn out of its investment return and sales for the H1 of the fiscal year, ending June 21, 2015. After subtracting the SG&A cost, it realized 98.5 IRR bn operating profit, resulting in about 99 IRR bn net profit and 41 IRR EPS. At the end of the first half, this company managed to make about 625 IRR bn retained capital.
Esfahan Oil Refining Company released its unaudited financial statements for the first quarter of the FY ending June 21, 2015. This company has made around 56,000 IRR bn income, peaking its gross profit level to stand at about 1,500 IRR bn. Subtracting selling, general and administrative expense(SG&A) from this amount plus adding the realized operating income, about 1,500 IRR bn operating profit was recognized. In conclusion, applying tax rules, around 1,900 IRR bn net profit was made, causing the allocation of 93 IRR earnings per share.
According to market analysts, until its actual implementation, JCPA would exert no net effect on market improvement or recession exit; however, short-term and temporary positive shocks will be experienced in mid-September whether due to the agreement’s approval or its veto by President Obama. As these professionals continue, the mere approval cannot export the market’s way out of the current slowdown and it should be accompanied by the entrance of capital to the country, the implementation of the government’s expansionary policies, Swift sanction removal, and the realization of profit in companies’ balance sheets. They also believe that the market has reached its bottom line and no more slump can be predicted, relying their logic on the economy minister’s promises to support the market. In conclusion, along with other market experts, they also think that the real and tangible effects of the nuclear deal will be felt from 2016 onwards.
“Optimally manufacturing steel is of the most important goal of Khuzestan Steel Company (Fakhooz)” said the company’s development officer. Ahmadian continues: “now that steel consumption, due to economic growth slide, has hit the bottom, investing in this field can be highly economical and profitable”. According to him, this company has manufactured around 4 mn tons of steel which might whether increase or decrease. The lack of market pull, export reduction, excess inventory, power supply limitations and market volatility have all been announced as the causes to such probable fluctuations. This authority concluded that specific plans and standards have been formulated for each and every manufacturing unit, such as raw materials, iron ore, and Ferro-alloys based on their capacities, taking into consideration their energy consumption ratio aiming to witness a drop in the final costs in all sections. After sanction removal and global prices’ improvements, those who have planted their seeds in these cloudy days will harvest the most.