Economy, Business And Markets

6% Rise in TSE Average Dividends

6% Rise in TSE Average Dividends
6% Rise in TSE Average Dividends

The average dividends of the listed companies in the Tehran Stock Exchange rose 6 percent within the first six-month of the year, compared to the same period last year, SENA reported.

The listed firms have declared total dividends of 329 trillion rials at the end of the annual general meetings (AGM), which ended Sep. 22. Following the report, companies have paid 80 percent of their net income to the shareholders.

According to the relevant statistics revealed by the TSE, which includes 231 firms, total net income of these companies recorded more than 399 trillion rials. About 80 percent of total net income of the listed firms has been declared as the dividends, indicating a 6 percent increase compared last year, an analyst said to Financial Tribune.           

“The total net income of the companies at the TSE reached about 227 trillion rials last year, while due to the bright outlook for the market, this amount has increased this year to nearly 399 trillion rials, indicating a 44 percent rise,” Keivan Sheikhi, head of the data and information department at the TSE told Financial Tribune, adding that, a 6 percent increase in the dividends demonstrates that the listed firms are financially sound.  

On top of the list, the coal extraction sector paid 126 percent of its actual profit to its shareholders, and stood at the peak. Wooden goods stood next with a 100 percent payout to investors. The agricultural, animal husbandry and affiliated services including tannery paid 99 percent to its shareholders, and other financial intermediaries paid 96 percent of their actual earnings to their shareholders to be the most popular industries within the first half of the current year, which ended Sep. 22.

The report also said, among the industries at the TSE, petroleum products industry and coke distributed the most dividends among their shareholders.

 Petroleum Category

The total net income of all seven companies in this category registered about 70 trillion rials, of which 82 percent – equivalent to nearly 57 trillion rials-- have been paid to the share holders.

 Base Metals and Banks

Base metals distributed about 54 trillion rials dividends among their shareholders. Banks, credit and financial institutions with almost 47 trillion rials were among the other profitable industries in the stock exchange.

In line with the most money-making industries, telecommunication announced close to 42 trillion rials dividends. The extraction of metal ore declared about 34 trillion rials in dividends and the chemical industries were next with close to 30 trillion rials dividends distributed among their investors.

 Average Dividend

The average dividend of each single share by the end of Sep. 22 reached 587 rials, the data and information department of the TSE announced.

Following this report, the average net income of the companies was recorded at 711 rials, of which 587 rials was distributed as dividends in the AGM.

  TEDPIX Edges Up

Tehran Stock Exchange’s main index (TEDPIX) ticked higher on Monday, as stocks’ struggle at the end of trading hours helped to lift the stock market’s sentiment.

After two consecutive downside trading days, stocks somewhat rebounded, while two of the major indices failed to gain and stood in the red.

The TEDPIX rose 31.5 points or 0.04 percent to 71,675.2. The first market index was up 18.5 points or 0.04 percent to 52,591.5. The second market index climbed 91.8 points or 0.06 percent to 142,323.8. The Industry index gained 65.5 points or 0.11 percent to 60,859.5. The free floating index lost 43.8 points or 0.05 percent to 80,694.2, and the blue chip index was another loser, as it was down 2.2 points or 0.07 percent to finish at 3,288.7.

Despite the upward trend at the TSE, the volume and value of trade was lower compared to Sunday. Within trading hours, close to 321 million shares changed hands, valued at nearly 823 billion rials.

Chadormalu Mining and Industrial Company left the most positive impact on the TEDPIX with a 44.57 percent contribution, while Pasargad Bank had the most negative impact on the market trend by -14.1 percent.

Pars Khodro caught the eye of the investors as the volume of trades for its shares was on top of other listed firms. Pars Khodro’s shares hit the bottom and it had a negative impact on the TEDPIX.  The low price of the company’s shares was the most crucial factor that attracted traders at the TSE.

TSE turbulences mostly stem from the psychological effects of the ongoing nuclear talks between Iran and the P5+1 over Tehran’s nuclear program.

The truth is that, traders shouldn’t just rely on the nuclear talks developments, as there are a lot more practical contributors in the equity market. Emotion plays an important role when the investors are evaluating risks and making decisions.

In line with the concrete plans to reinvigorate the capital market, emotions that stimulate the behaviors of the traders should be precisely taken into consideration.

Following the positive indicators recently revealed by the Central Bank of Iran about the economic growth coupled with the government’s practical moves to bolster the capital market, the TSE shouldn’t be off track.