Tehran Stock Exchange; promising Q3 results!
Reaching the final weeks of 1395 (2016/17) fiscal year, a huge pile of companies’ Q3 reports has been resealed over the past days. Better than expected performance on Tehran Stock Exchange can be seen amid the majority of industries. The growth ruling global commodities is to act as the main catalyst behind the stunning EPS coverage and adjustments.
Over the IT sector, the rising volume of transactions revenues of payment providers like Parsian E-Commerce and Kish Iranian Credit Card, made an acceptable positive adjustment to their earnings projections. Needless to say that the P/E ratio of the group is now considered as moderate.
Monthly sales amid the Cement producers showed vivid signals that the sector is to revive after all. Although the several gas cut offs over the winter will result in a lag on the additive sale trend eventually, yet the fundamentals are promising.
A rise in Agricultural land (the area under cultivation) concurrent with sugar production augmentation made the Sugar makers to modify their EPS positive.
Finally, FX rate and commodity affected sectors (e.g. Chemicals, Metals and Ores) has to be considered differently. The hike was sparked just after the coal started to boast globally. The cost of steel and chemicals production rose, therefore a lift in sale prices was inevitable. Needless to say that the president Trump campaign promises kindled the blaze even faster.
Auto down, Steel up!
In the Market
The stock market endured another range-bound day, which ended with the market remaining just above its flat line high from the other day. The TEDPIX won an iced-thin race and rose only 0.1% though the last minutes. The major index went up for 11.41 points to stand on 79,218. For the day small caps underperformed, sending the index lower at early hours.
The star-crossed Auto sector that enjoyed an ephemeral rally on hopes that its leader, Saipa, was back is now struggling not to lose more every day. Almost all the tickers ended the day in deep red and IKCO acted as the flagship of the move. More than 14.1 mn shares of Auto giant changed hands today and the ticker closed at IRR 2,838 (-2.1%). Saipa and Zamyad followed the trend as well yet the volumes were not high.
Metals on the other hands, indebted to a couple of outperformed EPS adjustments, closed higher today. After the announcement of Khuzestan Steel stunning report, the ticker got back to the market the other day. Near 10 mn shares of “FKHZ1” traded today on +2.0% made the closing at IRR 3,579 (+1.68%). The firm solely marked 19.96 positive points on the index. Although the volume of trades for Khorasan Steel was not much, yet “KAS1” had the most influence on TEDPIX.
Finally, regardless of global oil price advances over the past week, “Oil Products” continued the disappointments and lost big again. Nearly all the tickers were in red after the opening bell. On the other side of the board, chemicals’ trades kept sending the mixed signals through the session end. It seems the sector is in need of a new strong catalyst after all to be back on the track.
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