Central Bank of Iran:
Iran’s Economy Witness 5% growth
– The Central Bank of Iran’s Vice Governor estimated Iran’s Economy to experience a 4-5% growth until the end of the current year, which mostly seems to derive from the increased non-oil export. Growth in oil production and export after the lifting of sanctions had brought about the 12.5% growth in the prior year.
– According to the latest statistics released by the Ministry of Industry, Mine and trade, Iran Khodro managed to produce 444,573 vehicles until the end of Aban (Nov 21st), posting a 13.9% rise compared to the same period last year; likewise, Saipa has produced 222,599 vehicles over the said period, which shows a 17% increase in comparison with the similar period in the year before. The continuance of such a trend seems to get these companies to break their record in 2011.
In the Market
The minister of economic affairs and finance stressed that the government is serious about divesting Asia, Alborz and Dana Insurance companies. The said names faced with buy queues in the pre-opening time but failed to keep them through the closing bell.
An official in the ministry of agriculture announced the banning of sugar import to the country in the second half of the year due to high inventories and high production in the current year. As the result, Qazvin, Sabet Khorasan, Hegmatan and Shahroud Sugar companies in the Sugar space went up more than 2%.
Since early Fall, names in the Oil Products space have experienced more than 20% growth mostly after the gap between USD/IRR in the free market and official market reduced along with the global rise in oil prices, which intensified with their Q1 performance raised expectations among shareholders of profitability growth in such companies; the release of Bandar Abbas Oil Refining’s (Shebandar) H1 performance confirmed such expectations. This roaring trend, however, stopped soon after the TEDPIX hit its all-time high, which did not sustain long enough either. Among the factors causing such a decline still lies the ambiguity hovering around raw materials and products prices of such companies, which calls for its immediate address since it has the power to neutralize any probable growth in global prices. While 1 week has passed since Shebandar released its financial performance, other companies have not yet issued any new reports, which as many believe, necessitates a firm hand shown by the SEO to mandate them to do so. Except for slim gains by Behran Oil and Sepehan Oil, less than 1%, the whole sector ended beneath its flat line.
The rumour has it that Cruise Company is to purchase a block share of Iran Khodro, which appears to be the reason behind positive movements in the Automotive space, led by Iran Khodro and Iran Khodro Investment Development. Pars Khodro, Charkheshgar and Zamyad were the other tickers witnessing growth.
After concerns over the higher import tariff on paper were raised, an official assured such a thing will not take place in order to maintain stability in the paper industry; nonetheless, names in the Paper group were traded in the red, although Iran Carton managed to close in the green.
Having released its financial statements on Codal.ir, Hi Web ticker, in the IT & Communication group, returned to the market at IRR 5,034, +5% higher. Atie Dade Pardaz and Mobin One Kish were also traded in the green.
The growth in US dollar index resulted in the weakening of metals prices by 1.5% on average; copper prices shed below $6700. Consequently, a negative sentiment dominated the Metals space, although Iran Aluminum and Arfa Metal and Steel managed to hit their highs.
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