News and Views
- According to the Institute of International Finance (IIF), Iran would top countries in the Middle East and North Africa in 2016 in terms of economic growth after the lifting of sanctions, reaching 6%. Worthy to mention that as the Chief IIF economist in the MENA region, Gabris Iradian, believes, Iran has already been benefiting from a partial removal of sanctions as a result of the 14th July agreement between Iran and the major power countries. Sanctions removal accompanied by foreign investment and technology transfer in different areas will play the major part in this transition.
- Complementing the government’s economic growth package, some economic practitioners in Iran’s capital market have argued that granting micro loans to the middle class applicants can stimulate consumer demand while criticizing the existence of semi-bank institutions in the country which are freely violating the regulations by paying high interest rates, up to 30%. They expressed hopes that if the economic plans are implemented as predicted, the anticipated positive impacts will be started by the end of the current fiscal year.
- Holding USD 5.63 mn in capital, Sina Darou Pharmaceutical Company released its Q2 financial reports for the FY ending 19 March 2016. The company made USD 21.88 mn from sales, which resulted in USD 12.02 mn in gross profit, USD 11.66 mn in operating profit and USD 8.54 mn in net income, after SG&A costs and non-operating revenues, recognizing a USD 0.04 EPS.
- Aburaihan Pharmaceutical Company released its Q2 financial reports for the period ending 22 September 2015. Holding USD 4.06 mn in capital, the company made USD 26.91 mn from sales, leading to USD 10.98 mn in gross profit. The subtraction of SGA costs and the addition of operating revenues resulted in USD 9.77 mn in operating income, ending in USD 4.40 mn in net income and a USD 0.03 EPS after other costs and taxes.
In the Market
At the end of today’s trading session, most tickers in the Automotive sector ended in the red. Despite the SEO’s approval of Iran Khodro Company’s capital raise, which resulted in the company share’s price hike for only one day, institutional investors’ heavy supply put a stop to that trend. Although this capital raise plan can be a way out of more financial costs for the company itself, investors seem not to be interested in the plan; as the result, the company ended with a 10 million sell queue.
In the Transportation sector, high volume trades were seen in Tidewater Middle East Company; the company seems to experience a more positive atmosphere after the lifting of sanctions; in addition, it released a sound Q2 financial report and positively adjusted its EPS by 16%. Tuka Rail Company also released its Q2 financial statements which resulted in the share price growth; it seems that the company will have a bright future ahead due to the government’s special attention to the rail way system.
In the Pharmaceutical sector, low volume trades were seen; Q2 financial reports were not satisfactory and could not meet investors’ expectations. For instance, recognizing a USD 0.002 loss per share, Kosar Pharmaceutical Company has negatively adjusted its EPS from a USD 0.003 to a USD 0.001.
Finally, in the Construction sector, positive volatilities were observed. Although Tehran Construction and Renovation Company plus Iran Construction Investment Company have negatively adjusted their budget, other tickers enjoy more balanced conditions. Taking the market attention to small companies into account, the slightest movement in the market might mobilize this sector; albeit such a situation might most benefit speculators.
TSE at a Glance[caption id="attachment_5151" align="aligncenter" width="844"] TSE at a Glance[/caption]
Summary of Trades[caption id="attachment_5152" align="aligncenter" width="872"] Summary of Trades[/caption]
TSE Top 10 Stocks[caption id="attachment_5153" align="aligncenter" width="1166"] TSE Top 10 Stocks[/caption]
TSE Major Sectors’ Daily Performance[caption id="attachment_5154" align="aligncenter" width="633"] TSE Major Sectors’ Daily Performance[/caption]
Trading Halts and Reopenings[caption id="attachment_5155" align="aligncenter" width="888"] Trading Halts and Reopenings[/caption]
IFB at a Glance[caption id="attachment_5156" align="aligncenter" width="798"] IFB at a Glance[/caption]
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