Tag : Codal

As the oil prices have edged up to 60 USD levels, the petrochemical trend shares became more attractive for the market players. Since those companies are buying the crude oil 5% percent less than the Persian Guld FOB price, their EPS could be adjusted positively. Selling the products with higher prices and buying cheaper raw material will affect their financial statements in long run.

Two important but untimely events in TSE

First, as it was already announced by the SEO (Securities and Exchange Organization), Stock price fluctuation domain increased. This domain which used to be 4 % saw an increase of 1 % and became 5 % from Saturday 23th. However, this event is not happening at an appropriate time as the current conditions in the stock market aggravate the positive and expected impact of the new decision which was awaited by the investors and artificial entities, active in the market, long ago. This could have led to better and more liquidity, improvement in stock prices of top companies in the market, rise in transactions’ volume and value and most significantly faster balance and equilibrium when one specific stock happened to face abnormal flood of buyers or sellers.Nevertheless what happened was quite contrary to the expectations the authorities bore in their mind. In fact, what went on in the aftermath of this decision was somehow predictable and it is a big question why such measures are being introduced at an inappropriate occasion when there is no genuine support from the government and on top of that the shadow of a final nuclear deal is still on the body of the market. Considering these issues which were not solved yet thus resulted in selling pressures from those who are seeking any opportunity to leave the market.

“The companies in pharmaceutical sector have a great potential for growth and due to their low P/E ratio (near 4), they could bring more return even than the governmental bonds”, the portfolio manager of Etela Alborz Investment Co. said today. He added that although the companies like Alborz, Tolid Darou and Osveh pharmaceutical companies will have a better performance if the sanctions will be removed, they have low risk opportunities with more than expected return. He also mentioned that the KBC Company has signed new contracts for importing medicine to the country.  He assessed the KBC financial performance at good levels.