Tehran Stock Exchange All-Share Index
– After a combination of USD/IRR, crude oil and global metal prices rise (mostly arising from OPEC severe control on oil supply and China economic and environmental policies) accompanied by stricter regulations and supervision with regards to lowering interest rate on banking deposits in the country, many are questioning whether this ascending trend of Tehran Stock Exchange will continue in the foreseeable future or not. With the All-Share Index hike over the past 5 months, which benefited investors with a more than 20% return, the Metals space registered a performance of 45%, which followed by the Oil Products space and Iron Ore groups posting 44% and 43% return over the said period; the Chemicals industry also offered an above 35% return. Many believe that a sharp and heavy correction is not expected in the global markets, which multiplied by the expected increasing trend in US dollar price until the end of the current Persian calendar year will keep our hopes up in regard with the market growth. It is worth mentioning that the Automotive and Pharmaceuticals industries are the two lagging behind the TEDPIX, which are usually assumed to experience a relative growth at this time of year when their AGMs are being held.
– The basis of P/E calculation changed on the Tehran Stock Exchange. From today on, the listed P/E ratio on TSE website will be based on the latest realized profit (loss) each company made over the previous fiscal year. After implementation of SEO’s new framework for information disclosure, huge wave of controversies raised amid market participant which is mostly due to the obvious mistakes in data inputs.
In the Market
Contrary to expecting a positive market, a negative sentiment dominated the whole market, which was not strange, though, after the recent rallies and new records the TEDPIX (-0.70%) has been hitting. The more we approached the end of the session, the less selling pressure was seen in the market.
Following decisions made on its AGM on Nov. 1st, Bank Middle East listed on the Banking space is going to raise its capital from IRR 5,000 bn to IRR 6,000 bn. Bank Sina (VSIN1) and Bank Eqtesad Novin (NOVN1) tickers returned to the market at IRR 939 (+2.6%) and IRR 1,540 (0.0%), respectively.
A great number of names in the Metals group were negatively traded, although National Iranian Copper Industries (MSMI1), Kimia-ye Zanjan Gostaran Mineral (KZGZ1) and Iran Mineral Processing (FRVR1) saw demand in their final trades. South Kave Steel (KVEH1) has experienced a significant growth in sales mostly due to the rise in billet price and export, which posts an 188% growth compared to the same period last year. Calcimine (KSIM1) ticker returned to the market at IRR 5,400 with 6% growth; it had adjusted its EPS by 34%.
The majority of names in the Automotive group went under sales pressure with many facing with sell queues. Bahman Diesel (DZLZ1), however, was the top gainer going up more than 4.5%.
The Oil Products space was also negatively traded with its leaders ending with sell queues early in the session. Eventually, Behran Oil (NBEH1) hit its low. Sepahan Oil (SEPP1) ticker was reopened at IRR 14,225, going up 8%, having positively applied its estimates by 64%.
Except a few, the entire Chemicals group ended beneath their flat lines, led by Persian Gulf Petrochemical Industries (PKLJ1). Maroon Petrochemical (PMRZ1) was the top gainer. It is worth mentioning that a $1 bn worth of contract was sign between Iran and China on supplying equipment and construction in regards with phase 2 of Abadan Oil Refining renovation project.
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