30% increase in companies’ income with competition in the second Nima market – Tejaratnews

According to Tejarat News, the establishment of the currency exchange center and the supply of currency in the price range of 36 to 37 thousand tomans will partially cover the mentioned differences. It should also be taken into account that some companies sell their currency in the Sena system at a rate of 40,000 tomans. Changing the location of currency sales from the Nima system platform to the currency exchange center has brought about 30% growth to companies, and naturally, the impact of this issue will be reflected in the income of listed companies.

Walid Helalat, Chairman of the Board of Directors of Bidar Economy and Capital Market Expert stated: During the recent months, the dollar rate has grown by about 80% in the open market and by about 20% in the Nima system. This issue has caused the total index to register an almost 10% return compared to the beginning of the year.

Helalat explained: In fact, the total index has not even grown as much as the growth of half a dollar, because the cost of companies has grown by 40-50% in proportion to inflation, but their incomes have increased by half a dollar, i.e. 20%; On the other hand, the growth of the dollar rate in the free market has actually caused the cost of companies to face a higher growth compared to inflation.

He stated: The establishment of the Iranian gold and currency exchange center and the supply of currency in the price range of 36 to 37 thousand tomans will partially cover the aforementioned differences. It should also be taken into account that some companies sell their currency in the Sena system at a rate of 40,000 tomans.

Details of changing the place of sale of currency

The capital market expert added: Changing the location of currency sales from the platform of the Nima system to the currency and gold exchange center has brought about 30% growth to companies, and naturally, the impact of this issue will be reflected in the income of listed companies.

Helalat stated: Due to the unbridled growth of the exchange rate, it was not possible to continue the supply of dollars at the price of 28,500 tomans, and we can have the impression that a part of the backwardness of the stock market will be compensated by this means. Considering the above facts, the total index has had a low yield since the beginning of the year.

He stated: The growth of the dollar to the range of 50,000 tomans is not only caused by economic variables, and when political issues are discussed, part of its fluctuations are related to reducing the risk of individuals. It will be aggravated in the event of non-economic variables. Currently, non-economic variables have a great influence on the free market rate, and we should not necessarily measure the 50,000 Toman dollar with economic variables; It is even possible that due to non-political risks, the price of the dollar will go higher than the current level, but this growth will not necessarily return to the intrinsic value of the dollar.

A capital market expert said: If we assume the equilibrium rate of the dollar to be around 40 thousand tomans, the gap between the exchange rate of the stock market and the free market will be noticeable. This mechanism can also affect the free market, that is, the amount of currency supply at more reasonable rates by companies can brake the free market dollar rate.

Helalat said: I think the continuation of the current trend and the increase of people’s trust in the market depends on the government’s arrangements; For example, now the price of gas in America is 8 cents and in Canada is 6 cents, and the price of gas feed for our domestic industries (based on the current formula) is about 4-4 thousand 500 tomans, and the way and amount of the price set for next year is highly dependent. The future of stock market industries and the trust of shareholders is influential. Yesterday, the Minister of Economy announced the consideration of the support package, and now we have to see what features this support package has and what rate it will set for this important issue.

The capital market expert believes; If the gas feed rate is considered to be around 5 thousand tomans, along with the discussion of the exchange rate, favorable numbers will be obtained in the operational activity of the companies and can create a positive and noticeable impact on the stock market.

Making the dollar rate more realistic

Regarding the reporter’s question, to what extent can the more realistic dollar rate in the currency exchange center affect the market as a whole? He answered: About 70% of the total index is composed of commodity-based industries, so the total index of the stock market will face positive changes. It should also be noted how the base and prices will change in the commodity exchange, if the base price of petrochemical and mineral products is determined very quickly and immediately based on the exchange dollar, it will definitely have a very positive impact on the stock market industries.

The capital market expert stated: In the meantime, it should be taken into consideration that the basis of the dollar rate for the pharmaceutical and food industries is still 28,500 tomans, which can be both an opportunity and a threat. Realistically, keeping the price of pharmaceutical and food products low and providing feed for their production with government currency can cause reverse smuggling; In such a situation, the volume of sales and income of the companies will increase drastically, and naturally they will enjoy more profit, but in reality, their sales will be more than the country’s needs, which will ultimately indicate reverse smuggling.

In completing his speech, Helalat added: Multi-rate currency has complex economic and social consequences, if we assume that the state currency will always maintain its distance from the free market and on the other hand, the necessary support for stock market industries will be formed, in such a situation It will benefit listed companies, but it will not benefit the economy as a whole, because the tendency to smuggling will increase; Therefore, in the short term, the current rates are definitely in favor of the stock market. In other words, both the rate of 28 thousand 500 tomans for small industries and the exchange center rate for large industries will benefit the stock market and this is the best possible combination for the capital market.

Source: Senate