Written by Alireza Hojjatnia
- With the season of general assemblies to come, the trend of trades becomes moderate. The anticipations are to see growth over time with companies bringing promising news on their GA regarding the profitability. Over the past few months an aggressive ascending trend was dominant in the market but with the GA’s in a month the more conservative air is breathing now.
- The generals of 2016 budget bill was approved yesterday by the parliament with 152 votes in yay vs. 43 nay. “The bill is realistic” said Nobakht, head of management and planning organization. An economic growth of 5%, unemployment rate of 10% and for inflation to be around 10-12%, are main goals of the budget. The fact that 70% of low paying class are still going to receive the subsidies while 30% of the rich will cut out, was a significant modification to the bill made by representatives.
In the Market
TSE has made a fresh low since the week start as the TEDPIX declined 18.30 points (0.02%), on today’s trading session, to stand on 80,262.40. Coming GA’s season is mostly to blame for breathless trading trend.
The sale pressure is still on for Automobile sector with “Khodro” wrote-in 32.98 minus points on index followed by “Khavar” and “Saipa” with 20.81 and 9.10 respectively. Today, more than 145 mn shares of “Khavar” were traded on the floor after its reopening and adjusted EPS which caused the ticker -9.24% decline in the price. Trades for Khodro are a bit dizzy due the haze around the future of its co-operation with foreign companies, and the officials not making a clear statement is not helping the matter.
Most of the major players in Metals sector have been under steady pressure as before. It seems the main catalyst behind, is the absolute need of support from the government at this point. The sector’s giants are operating with a gross profit margin of near zero and the international condition of steel and other metals is making the case even worse for them. National copper industries tried to compensate for the sector by registering 30.17 plus point on the index; however “Foulad” closed at 1401 IRR (-1.41%) with more than 19 mn shares traded and “Zob” price declined (-3.68%), to ends the “Awful day” for the sector.
“Fars” lowered the index 61.41 points solely to be the ticker
with the most influence on today’s trading session. Most of the chemical sector components were the same. There was no one specific catalyst for the move other than low oil price which is no news recently.
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