Summer Getting Hotter in Iran’s Capital Market
* With the season of AGMs going on, the Metals space lies among those with an apparently promising future such that out of the 18 companies publishing their Q1 performances, only 1 has registered negative adjustment while 8 have reported positive changes to their projections. In early 2017, the decline in global prices, mostly arising from concerns over China’s economy, had prevented the liquidity from moving towards the metals space; the later decline in dollar index accompanied by positive data coming out of China’s economic fundamentals in the past few weeks, fortunately, pushed steel and iron ore prices upwards. All in all, steel companies started to release positive news on their performances. Khuzestan Steel applied a 29% rise to its estimates, increasing it from IRR 475 to IRR 614, realizing IRR 267 over its Q1. Esfahan’s Mobarake Steel also made IRR 121 in its 3-month period (40%), having raised its projections by 19% to reach IRR 302. With the zinc price hitting $2,800 per ton, Calsimine applied a 5% growth to its previous prediction to reach its the EPS to IRR 168, having covered 34% in the first quarter; Iran Mineral Processing also increased its estimates by 6% and covered 32%, i.e. IRR 303 in the first chapter. However, Iran Zinc and Lead was the only company applying negative adjustment by 6% to fall to IRR 154. With Copper prices previously falling behind $5,500 in London Metal Exchange, the past weeks have witnessed a rise in copper prices to exceed $6,000; as the result, National Iranian Copper Industries rose its estimates by 33% to reach IRR 272 while covering 33% in the first quarter.