General circumstances and conditions surrounding the capital market is the same as what we mentioned earlier and the market benchmark is an undeniable proof to this claim. The stock prices intend to correct and modify and the only element to help them appreciate in value is fundamental information to be seemingly improved most probably in the next quarterly reports. Currently, the market is demonstrating reactions to AGMs’ reports on the 1Q financial statements and the poor far from expected distributed dividends that were aggravated with extremely low budgetary coverage of most listed companies on TSE. We can refer to a multitude of factors contributing to and corroborating the current dilemma in the Tehran Stock Exchange that has stirred the problems. To start with is the continuous and on-going recession combined with decline in the inventories prices both in domestic and international scale.
Second is the oil price fall and the resulting government budget deficit that culminated in less governmental expenditures on huge civil projects in the housing sector and nevertheless the consequent depot in cement and other related products, ending in a tremendous decrease in the production capacities of factories operating in this industry. Third is the lack in financial resources and the noticeable hike in financial costs that has made the companies encounter a low amount of working capital which has constrained the activity and profitability of most enterprises and thus has made it hard for companies to project their budget for the future.
Nevertheless, it goes without saying that in the post-sanction period it is demanding for the authorities and policy makers to bring about and introduce sweeping changes in macro-economic structure of the country if the market is to experience a deep improvement in its long-term performance.
TSE at a Glance
Summary of Trades
IFB at a Glance
The market index lost the important channel standing at 67,000 points yesterday and with the subsequent downtrend touched 66,441 points today, which was another crucial level in the benchmark’s technical chart. The overall gauge still seems to be on the path for correction and with the slide it saw today registered at 536 points in negative we can somehow expect that the falling rhythm in the prices will be slightly leveled off in the coming trading sessions during the week, nevertheless, with bearing in mind that the barring elements and forces are yet to be had as most of the enterprises are challenging with age-old difficulties and crises such as low production, sales and profit margin.
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.
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