During the last few days there was a redoubled optimism in the market over the nuclear talks. This time the market reacts differently and instead of waiting for the releasing result or deadline extension, most of the investors recognized their gains yesterday and in today’s early trades. They preferred to stay out through the day on any headline coming out of Lausanne. However, as the ministerial meeting in Lausanne started at 7:00 am local time the buying pressure raised the TSE index by more than 0.5 percent. With regards to the absence of big legal market players due to New Year holidays, the retail emotions are out of control. Many investors believe a deal is in the making. Even without some sort of agreement a deadline extension is expected. Any statement coming from Lausanne will determine the fate of market.
The possibility of more positive adjustments for Iran Combine Manufacturing Co’ EPS – Daily Market News
Iran Combine Manufacturing Co increases its forecasted EPS for FY2015 by 53%. Predicting 50% jump in the company’s productions compared with last year is considered as the main reason for this improvement. This prediction is due to the developments of production line units, the government supports and the rise of human resources. The minimum 10 percent increase in the rate of sale is also forecasted in the company’s FY2015 budget. The company also predicted the export of 100 produced machine to Tajikistan over the next year. Moreover, by the order of the Ministry of Agriculture Jihad, the company is planning for importing the Combine and heavy tractors with the official exchange rate in near future.
The crude steel production of 8 main steel producers in Iran including Mobarakeh, Khouzestan, Esfahan, Hormozgan, Saba, Khorasan, Alloy and National Iranian Steel Companies reached over 15 million tones in the first 11 months period of year ended 20 Mar 2015, Iranian Mines and Mining Development and Renovation Organization reported. The number shows 8% increase compared with same period the year before.
No active participation of investors in market due to current New Year holidays, more optimistic view over nuclear negotiations and reopening of oil refinery companies after almost a year can be considered as the main reasons for upward trend in Today’s market. Although the tensions in Yemen overshadow the nuclear talks in Lausanne, the possibility of oral or written agreements is getting stronger.
The inflation rate was announced 0.6 percent for the last month of the year ended 20 Mar 2015. By considering this number the annual inflation rate will reach 14.3 percent which is unprecedented in the last four years. The government was successful in curbing the monthly inflation in the last year and luckily the global recession in the last six months has accelerated it.
Finally, the refinery companies released their reports after the deadline they were given. Their published reports and profits are so weird that there is no space to discuss them. Take Bandar Abbas Oil Refining Co. as an example: The company announced its profit through 4 scenarios from 400 to 950 IRR. The reopening of the refineries and their heavy negative adjustments caused the market to drop more than 5.5 percent to 61500 units yesterday.
- Following the review of the bill over removing barriers against the competitive production and enhancing the financial system of the country, the Parliament allowed the refineries to export petroleum products surplus domestic needs on the condition that the funds of purchased crude oil and gas condensate are paid. According to this additional provision, the settlements are required to be done based on 95% of Persian Gulf FOB price in cash or a one-month credit to the relevant state-owned company affiliated to the ministry of oil. The state is also obliged to pay an annual contribution to the national development fund.
- An establishment and operation license has been issued for the hundred and fiftieth fund in the market, Behshar Development Group fund, as a market maker. The funds which are dedicated to market making are not allowed to buy any other shares out of the subject of their activity. The main goals of lunching these kinds of funds are increasing the liquidity and smoothing the trades.
- During the past few days, in different events, the chief of central bank of Iran, Seif, emphasized the central bank’s plan for the banking interest rates. However, he asked the banks to reintegrate the rates first by themselves before any action taken place by the central bank. The Melli Bank’s CEO also said that the deposit interest rate could be defined at 20%level, if the inflation rate would be announced at 15%. .it is clear that the interest rate will definitely decrease next year but it’s unlikely to become less than 18%.
- The refinery companies released their 9 and 11 month production and sales reports. Bandar Abbas Oil Refinery Co. announced 4 percent decline in its production and 1 percent increase in its sales compared with last year during the 9 months period. Tabriz Oil refinery Co. in its 10 month report reduced the production and sales by 6 and 5 percent respectively compared with same period last year. It’s noteworthy to mention that the company’s production and sales reduction is due to an overhaul in last May and June. No specific changes in production and sale are noticeable in Lavan Oil refinery’s report. Shiraz Refinery Oil could also cover 92% of its forecasted budget in 11 months. Almost 10 months ago, based on 2014 state budget, the board of Iranian National Oil Refinery & Distribution Co. passed a bill of which the price of 5 main oil products including Petrol, Diesel Fuel, Mazut, Kerosene, Jet Fuel should be determined by their quality. Following this bill the trades of all refinery companies have halted. Not setting the prices based on quality by Ministry of Oil is announced as the reason for this halts. However the oil ministry denied this claim and announced that all the prices had been declared to the Iranian National Oil Refinery & Distribution Co. Nevertheless, in none of the released reports captioned feed or sales rates. In addition there is no news regarding the time the trades of this companies will be allowed and reopened.