• Based on the Iranian Tile & Ceramic Assembly’ report, Iran is the fourth producer and the fifth exporter of tile and ceramic in the world. With almost 700 million square meters capacity, Iran produces 450 Million square meters different kinds of tile and ceramics annually. Lack of essential infrastructure for export transportations and not paying attention to design and beauty of products, are indicated as the main problems of this sector.

• Although most of the listed petrochemical companies released their next year budgets with considering 8 cent ( 228 IRR) for the rate of their feeds, the parliament and the governments still have not approved this number. This factor has escalated capital market waiting condition. However, most of the active market players believe that the approved rate will be less than 10 cent and even if the rate of feeds is accepted at 9 cent there will be not be many differences.

• Although the Iron Ore producers tried hard to dissuade the authorities from getting royalties or usufruct, the parliament voted for only 5 percent reduction in royalties’ rate and stepping up the payment duties. Last year the Iron Ore producers had to pay 30 percent of their sale value as a royalty. However, regarding the parliament’s approval, the duties form sales depends on the product this year. For instance, the duties from sales of aggregate materials, concentrates changeable to pellets, pellets products and concentrates changeable to Direct Reduced Iron (DRI) are 25, 21.5, 18 and 15 percent respectively. These rates will affect the companies’ EPS positively and running the development projects will be accelerated. For example the new rates could reduce the costs of Chadormalu Mining and Industrial Co. by 1000 IRR bn. The company’s this year production has not changed due to current recession and the high royalty duties. Chadormalu is the biggest iron ore concentrates producer in Iran and supplies needs of steel companies by 40-45 %.

• The financial reports of the Iranian National Copper Co. indicate 18 % negative adjustment for its next year EPS. The company has considered 10% reduction for selling cathode and 12% cutback for foreign sales in its next year report. The company has predicted 47% rise in selling volume compared with last year which is primarily related to Copper concentrate sales growth. A glance in company’s reports reveals that the items have been taken most optimistically in the budget.  Given the copper trend and its domestic and foreign market, it seems that one should also expect the drop in products prices unless something happens in the industry.

• Following the announcement about finalizing the contract between Iran Khodro and Peugeot companies, the automotive sector took positive transactions today. The CEO of Iran Khodro Industrial Group declared the finalized new cooperation contract between Iran and France’s Peugeot. He said: “the provisions of this contract are not comparable with previous automakers’cooperation agreements. According to the contact, a joint venture will take place and this automaker is required to export 30% of its shared productions with Iran.

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TSE at a glance

 

 

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IFB at glance

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Trading Halts & Delays

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Trading reopenings

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Codal release

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Market Overview

The bearish trend continued today in the market. Due to their needs for more liquidity and recognizing gains at the end of the year, the legal investors have become the major sellers in the market.  Regarding the good news on the automotive sector and the positive atmosphere over the nuclear talks, more demands are expected to happen from buyers. However, this upward trend is not expected to last longer than a week.

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 the reporters: Negar Moshirfatemi at fatemi@agahmail.com