Concentrated on Investment in Iran
* Having been reappointed as the Minister of Oil and Gas in President Rouhani’s second term, Mr. Zangane, on the sideline of the first cabinet meeting, announced attracting investors both from domestic and foreign companies to develop joint oil fields as the top priority of his ministry, which will be followed by renovating and rebuilding of oil installations.
* Over the week, 12-17 August 2017, the volume and value of trades in the Iran Mercantile Exchange registered 110% and 63% rise, respectively, resulting in trading 869,759 mn tons of commodities worth more than $ 429.5 mn.
- Hegmatan Sugar has announced the realization of IRR 503 EPS for the FY ending 22 September 2018. Among the reasons behind its 7% negative adjustment are the rise in interest expenses and the non-settlement of its claims by the bank.
- Pasargad Oil has estimated to make IRR 4 EPS for the FY ending 22 September 2018, applying a 64% negative adjustment.
- In its first estimates, Ilam Cement has predicted to make IRR 23 EPS for the FY ending 20 January 2017, which is 23% lower than what it has previously predicted, i.e. IRR 30; the company has realized IRR 111 loss over the first half of its fiscal year.
In the Market
Eventually, the All-Share Index entered the 82,000-point channel after surpassing a lot of ups and downs, which mostly originated from doubts, doubts that after every hike will come heavy corrections, a pattern much seen among shareholders pushing them towards making periodic conservative decisions. It is so while some key factors have improved significantly over the first 5 months of the current year, 21 March- 21 August 2017, which were supposed to create more trust in the market positive trend in the mid-term.
The stock market has always, but for once at the time of nuclear talks, had a direct correlation with the foreign exchange rate, as one of these major influential factors, mostly due to the presence of FX-rate and commodity-oriented companies, which contribute to nearly 50% of the market total value. Comparing the average FX rate in the first 5 months of the current year with the same period last year shows an 8% growth; in this regard, many practitioners also believe that in case the inflation spring goes off, we should expect to see this rate flying higher than IRR 40,000, which will push the market upward.
In today’s session, the Iron Ore and Metals spaces finished at the top of today’s leaderboard, leaving major averages in the green territory.
Demand for iron ore grew in the first hour; the rise in ingot price affects the prices of concentrate and pellet, therefore, directly affecting companies’ profitability; this has made Gol-e Gohar and Chadormalu Mining and Industrial companies in the former very interesting. Mine and Metals Development faced a buy queue; besides, 20 mn of its shares were block traded in the retail market.
Iran Aluminum ticker in the latter’s last trade also faced a buy queue for the 4th session in a row. Besides, 35 mn shares of National Iranian Copper Industries were also traded in a block in the retail market.
The majority of companies listed on the Investment sector settled the session with slim gains. Sarcheshme Copper Investment, Insurance Industry Investment and Sepah Investment were the top gainers.
Symbols in the Oil Products group followed a balanced tend with Pars Oil as the top gainer, closing with a buy queue.