Market Officials Targeting More Dynamism
Over the past few years, serious steps have been taken towards increasing transparency, liquidity and eliminating limitations in the stock market. The other day, the Head of the Securities and Exchange Organization of Iran reported the taken measures within the past year as well as those to be implemented in the current year, aimed at creating a safer, healthier and more dynamic market.
Directing towards book building for IPOs, launching options (both in the TSE and IME) and defining strategies for algorithmic trading were among them; the latter calls for the proper infrastructure which are in progress to be completed. Another step was assigning some tasks to other institutions by the SEO, in order to add to the efficiency and oversight power of this organization.
Another major step was to set guidelines/strategies for the halting and reopening of tickers, mostly aimed at reducing the halting period, which is among major concerns of shareholders; the new instruction is planned to be approved and implemented within the next month.
Reforming and updating the market law, started in the second half of the previous year, was another issue discussed; stressing on the importance of revisiting such a law, mostly due to changes taken place in global financial markets and economy, Mr. Mohamadi said that this will be completed until the next two months and submitted to the Securities and Exchange High Council to be ratified.
Upgrading the ATOS trading platform, which was launched in 2005 in the TSE and IFB, was firstly mentioned since the autumn last year; this is also planned to be done in the next two months, interpreted as a very important step in developing the market.
Obliging the listed companies to publish their monthly production/sales wan another way to add to the market transparency level and in all, put an end to the blockage of shareholders, most specifically individual ones, in this market;
- National Iranian Copper Industries has realized IRR 341 EPS for the FY ended 21 March 2017, covering 125% of its estimates.
- In its audited report, Rail Seir Kosar recognized IRR 160 EPS, covering a 102% of its predictions for the FY ended 21 March 2017.
- Ardakan Industrial Ceramics has managed to make IRR 201 EPS for the FY ended 21 March 2017; it has covered 84% of its projections.
In the Market
Global commodity markets, mostly metals’, started today strong. Recently, more participation has also been seen in our capital market, resulting in higher trading values.
Following Iran Khodro’s failure to sell the 16% block of Iran Khodro Investment Development in March 2017, this block was placed on the table for the second time today; containing 240 mn shares, it were sold at IRR 6,670 while it had been priced at IRR 7,000. This pushed Iran Khodro and the majority of tickers in the Automotive industry to witness positive trades. Furthermore, Saipa is going to hold its annual general meeting for the FY ended 21 March 2017 on July 22nd. Bahman Group also distributed IRR 200 EPS in its general meeting; if the current positive atmosphere dominating the automotive space continues, it is estimated to reopen 10% higher.
It has been heard that the Central Bank of Iran has obliged banks which recognize earnings in their financial statements to allocate it for improving their capital adequacy ratio, which might affect the Banking group. Most names settled with slim gains, although Melal Credit Institute closed with a sell queue.
In line with global metal prices growth, a great number of symbols in the Metals space gained more than 4%, facing buy queues, among which Esfahan Steel, Iran Mineral Processing and Arfa’ Metal and Steel can be named.
With the recent decline in oil price, the remaining opened tickers in the Oil Products industry finished totally in the red with Pasargad oil ending with a sell queue. Being halted on Saturday, Tehran Oil Refining released its unaudited financial statement for the FY ended 20 March 2017; it has made IRR 580 EPS, which registers a 249% rise compared to the same period last year covering 166% of its last projections. Other halted refinery companies are expected to announce such positive adjustments as well.
Following the probability of cement price increase by 15% in the next month and intensified with news on the freedom of Mosul, nearly the whole Cement space observed positive trades with some like Doroud Cement, Fars & Khuzestan Cement, Khuzestan Cement and Shahroud Cement closing with buy queues.
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