After the approval of JCPOA, one of the most important systematic risks of the TES, i.e. sanctions, was removed which led to the entrance of more individual investors and the increase of the all-share index. The second concern of investors was the anticipated unsatisfactory Q2 reports, leading to negative adjustments and deep plunges, whose removal can contribute to the revival of the market.
In the Banking sector, Q2 reports demonstrated that most symbols could cover 50% of their predicted EPSs. A rather positive trend was witnessed for most tickers, a trend started by institutional investors supporting Mellat Bank and continued as the Q2 reports of Saderat Bank were released. Although sanctions on joining the SWIFT network are still in place, banks’ exchange transactions have increased which can promise a bright future for this sector.
In the Oil Products sector, Bandar Abbas Oil Refining Company ended in the green after being institutionally supported; Lavan Oil refining Company was on a bearish trend, although experts believe that it may also turn in the green at the end of tomorrow’s session. However, no Q2 financial statement has been released in this sector which is a potential risk to consider.
The Sugar sector was among the few sectors ending in the green. Except for Naqsh-e Jahan Sugar Company and Lorestan Sugar Company, other symbols experienced a price hike. As has been said before, during the recent months when the market has started a bearish trend, this sector has been able to attract investors’ attention due to its negative Beta correlation.
And the Automotive sector, due to the absence of major symbols such as Iran Khodro Company and Saipa Company, faced negative trades; tickers such as Charkheshgar Company and Iran Tractor Forging Company were the only tickers ending with buy queues.
TSE at a Glance[/caption]
Summary of Trades[/caption]
Trading Halts and Reopenings[/caption]
IFB at a Glance[/caption]
DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.
To contact reporters: Mojde Rezaee at m.rezaee@agah.com
The stock market is influenced by companies’ Q2 reports released these days. Most such reports have been unsatisfactory; for instance, they have been negatively adjusted in the Automotive sector and lacked proper EPS coverage in the Banking sector. However, the prospect of sanctions relief and economic growth package might probably lead to better Q3 reports.
In the Automotive sector, most major symbols such as Iran Khodro and Pars Khodro were halted due to heavy losses announced, which led to the observance of many sell queues.
In the Banking sector, a negative trend was witnessed. As was said, financial reports were not satisfactory. According to them, many banks have faced losses in their joint incomes; this means that the act of receiving deposit from depositors and lending them to the loan receivers has ended in loss. Besides, their questionable claims are also raising concerns. Mellat Bank was about to have a sell queue and Saderat Bank share price declined to USD 0.002 after 43 million shares were traded. Experts believe that this negative trend will extend to tomorrow’s trading session.
The Oil Products sector has remained ambiguous and it appears that their financial statements will not be released so soon. In line with the market momentum, this sector, including Bandar Abbas Oil Refining Company and Tehran Oil Refining Company ended with sell queues.
The Chemical sector witnessed low-volume trades. Although their Q2 financial reports were appropriate, the gas feed price increase still worries investors. After two bullish trading sessions, Parsian Oil and Gas Development Company faced a sell queue; and Tamin Petroleum and Petrochemical Company was traded in its -2% area.
TSE at a Glance[/caption]
Summary of Trades[/caption]
Trading Halts and Reopenings[/caption]
IFB at a Glance[/caption]
DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.
To contact reporters: Mojde Rezaee at m.rezaee@agah.com
After a few sessions of bull market, it seems that the shadow of recession is about to cast over the market, pulling down its trade value and volume. This shows that market players have not trusted the economic promises since many believe that the government is not in the possession of enough resources to boost the demand side and mobilize the current sluggish economy. On the other hand, some experts remark that the government’s heavy debt to banks, contractors, etc. are barriers ahead of adopting any operational policy to bring economic prosperity at least in the current year. In addition, as has been stated before, the upcoming Q2 reports and the anticipated negative adjustments and losses in most industries will add to the investors’ reluctance and caution to buy.
In the Automotive sector, most tickers were traded negatively; Iran Khodro and Saipa Group’s share prices dropped. In fact, some rumors have been heard on the cancellation of automobile purchase loan, since it does not seem that banks will be willing and able to offer such loans under the current circumstances. Besides, Bahman Group faced a sell queue. This company has recently raised its capital by 97%; however, due to being affected by sanctions and financial crunch, it seems impossible that this company can resolve its problems in financing in the current year.
After the dominance of a more rational atmosphere in the market, the market is now waiting for the Q2 financial reports; as a result, most tickers in the Banking sector were negatively traded. Karafarin Bank and Post Bank were among those few in the green. It is worth mentioning that today institutional investors played an active role and taking this sector’s technical status into account, experts predict the continuance of institutional supports in the next trading session.
In the Construction sector, some officials have stated that the government has plans for bringing back prosperity to the housing sector, referring to granting diversified housing loans in the near future. The hopes over the probability of increasing the loan amount ended in investors’ more attention to this sector. The volume of trades was considerable and most tickers ended in the green.
In the Chemical sector, most listed companies ended in the red such that Farabi Petrochemical Company faced a sell queue. Parsian Oil and Gas Development Company (still growing in the fifth consecutive day after reopening) and Kermanshah Petrochemical Industries Company (also facing a buy queue for the fourth consecutive day) were of the positive symbols in this sector. Iran Mineral Salts Company also ended in the green; releasing its Q2 financials, this company did not change its predicted EPS in this period and it managed to cover 45% of this amount.
In the Other Financial Intermediaries sector, more balanced trades were observed; although there was no sell queue, Rayan Saipa Leasing company ended in the -2% territory. Today, most institutional investors sold their shares for which liquidity crisis has always been mentioned as the reason.
In the Cement sector, balanced transactions were witnessed; Kerman Cement Company and Khuzestan Cement Company experienced price hike. However, despite the significant correction in the P/E ratio of most companies in this sector, which can trigger the growth of such shares by positive news, the upcoming financial statement is the obstacle ahead. For instance, releasing its Q3 reports, Ardabil Cement Company managed to recognize $0.01 EPS which shows a 73% fall, compared to the same period last year.
TSE at a Glance[/caption]
Summary of Trades[/caption]
Trading Halts and Reopenings[/caption]
IFB at a Glance[/caption]
DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.
To contact reporters: Mojde Rezaee at m.rezaee@agah.com