low and refined; Should we buy or sell? – Tejarat News
According to Tejarat News, in the last month, the whole market has experienced a good increase following the growth of the total index. The shares of the portfolio of two funds with low and refined funds behaved in line with the overall index and grew by 19 and 7.27% respectively.
This is despite the fact that these funds themselves have recorded very low returns; In such a way that low-income and refining funds have recorded 6 and 1.41% returns, respectively!
On the other hand, the comparison of the price of these two funds with their NAVs indicates that the low and refined investment funds are trading 60% and 47% below their intrinsic value, respectively.
Also, the financial statements of these two funds report low losses and low profitability of the refining investment fund. So that in the first half of this year, the investment fund Darakom suffered a loss of 1,367 billion tomans. On the other hand, in the current half-year, Palash managed to make a profit equal to 1,349 billion Tomans.
Also, despite the increase in the dollar rate, this fund has a high chance of moving in line with the dollar rate due to the dollar shares of its portfolio.
Now this question is raised, considering the increase in the dollar rate and also the significant rise of the total index in recent weeks, are the two refining funds and Dara 1 worth buying?
The role of the dollar in the yield of funds
Hossein Meridsadat, a capital market expert, in a conversation with Tejarat News, reviewed the situation of Paalish and Darikam, two government funds tradable in the stock market.
Regarding the current conditions of these two funds in the stock market, he said: “Regarding the dollar rate, the refining fund is definitely more prone to rise than the low-income fund.” The low-value symbols are Riyal and from the banking and insurance group, but the refining symbols are the dollar, for which we saw high demand and the formation of buying queues.
Poor and refined left over from the market
Meridsadat added: “Of course, we should not forget that these symbols will sell for 10,000 tomans. Because they reach their break-even price and some shareholders sell their shares at these prices.
This stock market expert added: “It is not necessary for refining and low-income funds to grow together with their constituent stocks. Because people buy the shares themselves. However, these two funds were left out of the market; Because they were not worked on as it should and maybe.”
Expensive stocks
Criticizing the twelfth government’s burning of opportunities in the supply of scarce assets and refining, he stated: “If the government could make the most of these funds, the stock market situation would not be like this.” It can be said that the Darikam government planned to sell the refining to the people at a high price.
Emphasizing that he does not have a positive opinion about these two funds, but considers the banking group as the most valuable group in the market, Meridsadat said: “If someone predicts the market in rials, he will buy the shares of the banking group, and if he sees the market in dollars, he will buy refining stocks. buys.”
Conditional investment in funds
Meridsadat stated that he does not recommend shareholders to keep refining and low assets in their portfolios and stated the reasons for this and said: “These two funds have not had good conditions in the last two and a half years and they have not been well managed.”
In the end, Meridsadat noted: “Nevertheless, Refining is 50% and Hadalam are 60% away from their NAVs, and in any case, these two funds can be good opportunities for investment, provided they cross the limits of self-sustainability.”
Movement of funds in sync with the total index
Sara Fallah, another capital market expert, told Tejarat News in this regard: “Considering that these two funds have been in losses for a long time, it can be said that these two government funds are in sync with the index due to the portfolio they formed of large stocks. They should act together and the luck of the people will return to these two funds.”
At the same time, it should be noted that the studies show that the shares of the portfolio of these two funds have had better returns than the two symbols of low and refined assets in different time periods.
This capital market expert added: “The lower yield of these two funds compared to the shares they have in their portfolio is normal; So, following this lower yield, the risk of investing in these two funds also decreases. Therefore, the probability of these large shares falling inside the two funds is higher than these baskets themselves.”
Lack of confidence in the market
Fallah added: “Also, the First Refinement Investment Fund entered the capital market when most of the shares faced a sharp drop in price. In this regard, it can be said that the lost trust of the people at that time is the reason for the low performance of these two government funds in different periods of time.
He also added regarding the loss of Daraekam investment fund: “Monetary policies regarding the interest rate that affected the profitability of banks, as well as the lack of growth of the overall market in the last 6 months, were among the reasons for the placement of these two symbols.”