- Almost a month ago, The Central Bank of Iran ordered all banks to not to pay cash for checks from Ayandeh, Sarmayeh and Iranzamin banks with value higher than 1,000 IRR mn. However, the central banks restricted the rule for one of these banks again last week and announced that all the banks should not accept the check from Ayandeh Bank with value higher than 100 IRRmn . The Ayandeh Bank’s check can only be transferred to cash in its own branches. It seems that the central bank is so serious in controlling the banks. Pasrgad, Sina and Karafarin banks are among the low risk stocks in this sector.
- Tile and ceramic sector experienced a high sale pressure in today’s market. Currently there are some rumors about the probability of two temporary factory closures in this sector. The tile and ceramic sector are dealing with main problems such as: high rescission in constructions which has led to high fall in domestic sales and rise in accumulative inventories as well as low liquidity, transportation and distribution problems before and after Persian New Year season.
- In its latest reports, Absal Co. has adjusted its budget for the current year. Despite of the company’s decision on producing more products and selling more till the end of the year, due to the problems dominating the company, the sell price is estimated to decline 7 percent. The most critical issue relating to the reduced forecasted sell price could be lack of government support for manufacturers, smuggling and irregular imports which have led to a catastrophic downturn in home appliances, especially washing machines. This issue has not only plagued the domestic production but has also caused the importers warehouses to be repleted with products. In the home appliances sector, especially during the time of sell recessions, all the companies will start to sell through discounts, promotions, etc. Abasal, too, has to take these measures in order to maintain its selling market which will lead to the reduction in company’s profit. According to the company’s latest report, the estimated total profit of the current year has been reduced to 587 IRR. In the 9 months period the down ward trend continued and the return declined to 324 IRR which has decreased by almost 59 percent compared to same period last year. If the company covers the adjusted forecasted budget for the year ending 20 Mar 2015, then the real return will decline by 40 percent compare to last year. Although at the beginning of cold season the heater sale was on track, the warmer than usual weather return the goods to inventories. The sale value of hears has only 8 percent increase in this year which could not cover all the production costs. It should be noted that due to market rescission, higher prices cannot be tolerated by costumers. In general, it is expected that the companies EPS drop to 587 from 856 IRR.
TSE at a glance
IFB* at glance
Trading Halts & Delays
The market is uncertain about the future. On the one hand, there are more hopes to overcome the political obstacles; on the other hand, there are fears over the next budget reports of companies. With regard to current political and economic situations a downward trend is expected for most companies’ return. However, during the past days, the trading volumes are low on negative prices. This fact shows that the market has no power or desire to continue its sharp bearish trend. The other reason for more balanced trades is the correction of oil prices. Although more rise in oil prices is not expected in the long run but the pressure has been removed from market.
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.
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