• In banking sector, interesting technical curves are shaping. The possibility of forming reversal patterns is getting stronger verified by positive divergence. In the last meeting of Money & Credit Council the doubtful receivables were approved to be considered as taxable costs which could be good news for this sector. On the other side, this could be a threat as banks may start to accumulate more reserve. In general, holding this sector’s companies could be one the best choices in this market.

• In food sector, holding or watching the Behshahr Industrial Co. is recommended. The company has adjusted its return positively for the current financial year. The next general meeting will be probably held on the last week of year ending 20 Mar 2015 to approve cash dividend. Considering cash divided besides the forecasted return in next year budget we can see that it would make the company’s p/e ratio at acceptable levels. In addition, the decline in global crude eatable oil prices and the significant fall in cost of transportation for importing oil could lower the production costs. The best recommended price for buying is at 7,200 IRR levels and the main resistance is at 8300 IRR.

• Pump Iran Co. with a capital of 220 IRR bn, announced its forecasted EPS for year ending 21 June 2015 424 IRR which has been decreased to 419 IRR in its next reports. This number has been changed again to 423 IRR in the last report. The company forecasted 64,900 IRR mn incomes for selling technology knowledge to its subsidiaries. The company which lost 309 IRR mn form its investment activities in the first 6 months of last year, could make 13 IRR bn return from its investment in same period this year. The company could make 126 IRR returns for each share in 6 months period ending 21 Dec 2015 with 125 percent increase compared to last year same period. By this amount the company could cover 30 percent of its annual forecasted return. If Pump Iran reaches its forecasted budget in 12 months, the real annual return will increase 30 percent compared to last year.

• Khuzestan Steel Co. had a weak performance in its first 3Q year ending 20 Mar 2015 compared with same period last year. In this period the company has made 961 IRR return for each share which shows more than 40 percent decline compared with same period last year. With 8,000 IRR capital, the company decreased its annual forecasted EPS from 1643 to 1197 IRR with regard to its weak 3Q performance. Forecasting 8.45 percent fall in volume of sale due to less demand and 3.16 percent drop in the rate of sale are the main reasons for this negative 27 percent adjustment. The company could cover 73% of its forecasted annual production in this period with 7 percent decline compared with same period last year. However, the company sale volume had increased 8 percent compared with same period last year. The sale value dropped 10 percent and led to 36 % decline in margin return. The operation return also declined by 40 percent.

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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

Today’s market trades had a balanced upward trend due to the rise in Oil prices. Although there wasn’t any specific political news in the revolution anniversary marching, the wall street journal claimed that Khamenie, the Iranian supreme leader has sent a letter to Obama, which brought more hope to market. Still no specific date is settled for next round nuclear negotiations. It should be noted that from this week the proposed budget will be reviewed publicly in Parliament for final approval.  In the last month of current Persian year and with regard to publishing next year companies’ budgets more warily behavior is expected from investors.

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.