Central Bank of Iran: Inflation Remaining
in the 1-Digit Zone
* Statistics released by the Central Bank of Iran shows that fluctuations in the “bank deposit interest rate” and “foreign exchange rate” (surpassing the IRR 40,000 threshold) have not exerted any drastic effect on the inflation rate path while the possibility existed that the Central Bank of Iran directive on lowering bank interest rate might move a part of banks’ liquidity towards other markets raising the inflation rate. In case the taken path continues, the inflation rate will be registered in the one-digit zone for the second year in a row. According to the CBI report, point to point inflation rate stood at 8.4%, declining from 12.7% in Farvardin (Mar-Apr) month and the average inflation rate reached 9.8% in Mehr (Sep-Oct) month while it hovered around 10% and 9.9% in the 2 pervious months.
* Determined to curb the possibility of any illegal credit institution establishment in the future, a bilateral initiative has been approved by President Rouhani to be signed between the Central Bank of Iran (CBI) and the Interior Ministry, equipping the two entities with the sufficient supervision power over all banks’ activities.
In the Market
Hi Web company, listed on the Information & Communication sector affecting the All-Share Index by 20 points, benefited from the rumor that it has purchased Asia Tech company, a company which is about to be offered to the public (supposedly on Monday). Asia Tech Company’s CEO later declared that the rumor was false, mostly at the time of the IPO, although in the long run it might take place; however, it did a little to reverse the company’s trend. Recognizing IRR 313 bn income in Mehr month, the company has managed to cover 50% of its budget. It resulted in other names in the space to go through positive trades.
nearly the whole Oil Products industry moved higher in tandem with the price of crude oil which reached nearly $60 per barrel with Iranol Oil (3.8%) and Tabriz Oil Refining (2.7%) as the big gainers. Releasing a note, Tehran Oil Refining Company’s (0.38%) official announced that yesterday fire did not exert any effect on the company’s performance and it is now active in full capacity.
The growth in methanol and urea prices in global markets has been pushing petrochemical companies’ share prices listed on the Chemicals group upward over the past sessions such that Zagros Petrochemical and Kharg Petrochemical went up by 1.7% and 3.68%, respectively.
As the result of the recently released negative financial reports, the majority of names in the Automotive space, except from Bahman Diesel (4.15%), Bahman Group (4.24) and a few tickers active in the spare part mfg. area like Ravan Fanavar Industrial Engineering (4.7%), closed beneath their flat lines. Iran Khodro (-0.04%) has also announced to produce more than 390,000 vehicles over the first 7 months of the current year, registering a 14% rise.
Iran Arqam ticker returned to the market at -17.6% at IRR 5449; the company has applied a 56% negative adjustment. It dragged other symbols in the Computer sector like Dade Pardazi Iran (-3.66%) an Asan Pardakht-e Persian (-0.95%) into the red territory.
Excluding Iran Manganese Mines, which has benefited its shareholders with a nearly 20% returned in the past 5 sessions, plus Bama (0.1%), the entire Iron Ore group settled with moderate losses. Among these companies, Chadormalu Mining & Industrial (-0.12%) has materialized IRR 116 of its estimated IRR 224 EPS, equal to 52%, in the first half of its FY ending 20 March 2018; it has made IRR 11,000 bn announcing its net profit to surpass IRR 7,000 bn. Besides, Gol-e Gohar Mining & Industrial (-0.55) has also seen a 124% rise in its EPS in the first half of the current year making IRR 240; it has also earned IRR 22,125 bn, estimating to exceed IRR 30,000 and realizing IRR 10,000 bn net profit.
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