Day Bank returned to trading after a two-year hiatus on Monday, as its shares lost half of their value in a single day.
“BDYZ”’s opening price dropped 50% to about 700 rials from its July 19, 2016, close of 1,400 rials per share. The price meltdown singlehandedly accounted for an eight-point drop in Iran Fara Bourse’s main index, IFX.
Describing itself as a “value maker”, the $152-million Day Bank shocked investors by posting losses about twice its nominal capital for the fiscal 2016-17. Its cash-bleeding trend only continued in the next year, as its losses grew 121% to about $690 million.
Monday trade saw 824 non-institutional and 31 institutional investors sell 154 million shares in Day Bank to 1,320 non-institutional and only five institutional investors, highlighting a lack of institutional support and a bargain price for newcomers, Bourse Press reported.
Day Bank’s unruly return to trade is a mirror of the industry’s sorry financial state. From heavyweight lenders such as Bank Saderat to smaller ones like Parsian Bank, they were mostly barred from trading due to delayed publication of loss-ridden balance sheets.
A large number of private IFB-listed lenders’ stock tickers, namely Bank Sarmayeh, Ayandeh, Saman, Ghavamin, Resalat, Shahr and Mehr Eghtesad, are still frozen for well over a year.
Tehran Stock Exchange has unburdened itself in recent months with only Bank Pasargad remaining on its frozen list.
