News and Views
- The court of appeal has dismissed British Treasury’s appeal against disclosure of information, in the process of challenging the Financial Restrictions Order 2011 on Mellat Bank. The tribunal said damages should be recoverable for any loss and the bank should have the right to claim for damages as a consequence of the unlawful government interference.
- Stressing that the CBI has plans to increase retail provisions granting to the public in the form of credit cards with the aim of supporting internal production and economic prosperity, the CBI governor emphasized that this bank is working on the facilitation of foreign investment in the post-sanction era. He continued to say that the first plan is to rejoin the SWIFT network. In this regard, a steering committee has been formed to suggest the required strategies and solutions and supervise the rejoining and information trade trend.
- Saderat Bank released its unaudited Q2 reports for the period ending September 22, 2015. In comparison with the same period last year, its joint income faced a 61% increase to stand at USD 1,734.90 mn which led to its 21% rise in the bank’s total revenue, touching USD 853.51 mn. In addition, its total costs went up by 27% to stand at USD 731.01 mn. It was so while its net profit and therefore, its EPS did not change, recording USD 121.89 mn and USD 0.002, respectively.
- Dashtestan Cement Company released its financial statements for the FY ending September 22, 2015. Holding USD 23.09 mn capital, the company made USD 27.20 mn from sales, leading to USD 11.39 mn gross profit which shows 7% decline compared to the same period last year. After the subtraction of SGA costs and the addition of other operating revenues, USD 8.20 mn operating profit was reached. The mentioned company eventually managed to make USD 6.48 mn net income, recognizing USD 0.008 EPS.
- It has been heard that some tickers in the Pharmaceutical sector, including Chemidarou Company, have weakly covered their forecasted budget due to the rise in official exchange price.
- It has been heard that Shahed Civilization and Development Company has plans to raise its capital by 117% based on its retained earnings and claims.
- It has been heard that the Cultural Heritage Investment Group has performed well in the Q2, covering a significant part of its budget.
In the Market
After the approval of JCPOA, one of the most important systematic risks of the TES, i.e. sanctions, was removed which led to the entrance of more individual investors and the increase of the all-share index. The second concern of investors was the anticipated unsatisfactory Q2 reports, leading to negative adjustments and deep plunges, whose removal can contribute to the revival of the market.
In the Banking sector, Q2 reports demonstrated that most symbols could cover 50% of their predicted EPSs. A rather positive trend was witnessed for most tickers, a trend started by institutional investors supporting Mellat Bank and continued as the Q2 reports of Saderat Bank were released. Although sanctions on joining the SWIFT network are still in place, banks’ exchange transactions have increased which can promise a bright future for this sector.
In the Oil Products sector, Bandar Abbas Oil Refining Company ended in the green after being institutionally supported; Lavan Oil refining Company was on a bearish trend, although experts believe that it may also turn in the green at the end of tomorrow’s session. However, no Q2 financial statement has been released in this sector which is a potential risk to consider.
The Sugar sector was among the few sectors ending in the green. Except for Naqsh-e Jahan Sugar Company and Lorestan Sugar Company, other symbols experienced a price hike. As has been said before, during the recent months when the market has started a bearish trend, this sector has been able to attract investors’ attention due to its negative Beta correlation.
And the Automotive sector, due to the absence of major symbols such as Iran Khodro Company and Saipa Company, faced negative trades; tickers such as Charkheshgar Company and Iran Tractor Forging Company were the only tickers ending with buy queues.
TSE at a Glance[caption id="attachment_4957" align="aligncenter" width="837"] TSE at a Glance[/caption]
Summary of Trades[caption id="attachment_4965" align="aligncenter" width="862"] Summary of Trades[/caption]
Trading Halts and Reopenings[caption id="attachment_4960" align="aligncenter" width="845"] Trading Halts and Reopenings[/caption]
IFB at a Glance[caption id="attachment_4961" align="aligncenter" width="815"] IFB at a Glance[/caption]
DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.
To contact reporters: Mojde Rezaee at firstname.lastname@example.org