- Iran and the United States have started their new bilateral talks in Geneva from Friday morning. The sanctions and Centrifuges issues are the main subject of this round of the negotiations. The foreign ministers will also join on Sunday. Yesterday, Iran’s foreign minister, Javad Zarif said “from my point of view, we should reach an agreement until June and it’s not convenient to announce a political declaration on June and wait for details later. This would start an open ended process which is beneficial for no one “.
- On Wednesday, the new method for calculating the Base Volume was announced by the Security and Exchange Organization of Iran. It is noteworthy that The Base Volume is the leverage which has been used from 2003 in the Iranian stock markets to prevent the false and unnecessary fluctuations. The Base Volume is the minimum amount of shares that should be traded during the day to changes in settlement price be recorded for that day. This leverage was calculated by 0.0008 multiplied by the total shares of companies. Hence, each company has a unique Base Volume based on its capital. The employment of this leverage made some legal investors to turn to penny stocks or losing companies since they could not obtained the yield by larger stocks. By the new regulation, from today the Base Volume for all listed companies will be calculated by 0.0004 multiplied by total number of shares for each company. Moreover, the value of the Base Volume should be between the range of 500 IRR mn and 10 IRR bn and is calculated based on the last settlement price of the previous week. The Base Volume had become a barrier for the big and low liquidity companies’ price movements. However, by applying the new rule the Base Volume of most companies will decrease. On the other hand, the limitation rang can prevent some speculations and group trading in small shares. This change has been welcomed by shareholders and active market members since it can smooth the transactions and price movements.
- Alborz Distribution Co., one the biggest companies in supplying and distributing medicines in the country, announced its first forecasted EPS for year ending 20 March 2016, 17 percent higher than current year return. Income and revenue from services has been increased by 27 percent which was forecasted as an increase in volume and rate of sale and developing the sanitary sector. The cost also moved up by 28 percent and led to 25 percent increase in gross profit. The administration and general costs were also considered 24% higher than the current year. The company with 350,000 IRR mn capital had announced its EPS, 783 IRR for year ending 20 Mar 2015 which has been changed to 719 IRR with considering 400,000 IRR mn capital in its last report.
- ISNA reported that the total annual domestic consumption of steel in Iran could reach 45 million tons in 10 years if the growth rate extents to 4.5 percent and the per capital income increases to 3 percent. Currently the domestic consumption of steel is around 288 kg per capita which could jump to 499 kg in 10 years. Based on this report, with considering 2.5 percent income per capita and 4 percent growth rate the forecasted steel consumption per capita could be 453 kg in 10 years from now. While, if the country income per capita reaches 1.1 percent and the growth rate touches 2.2 percent, in 10 years the steel consumption per capita is forecasted 421 kg.
- The secretary of the Tire Industry Association of Iran , Khosrow Mahmoodian, said that importing passenger tires jumped by 151 percent in the first three quarters of year ending 20 March 2015. He also added that most of the imports are from china, and Chinese producers are the main threat for developing and even survival of this industry in Iran. Based on his statements in last Persian year (ending 20 Mar 2014), 10 tire manufactories had 926 USD mn production with a share of 0.3 percent in Iran’s GDP. Iran’s tire industry has a 0.5 percent share in total world sale. In the first 9 months of this year the domestic tire production has had a 15 percent increase while the imports moved up by 151 percent. He mentioned that research and developments alongside the incentive programs for investment and controlling imports could change the situation of this industry.
TSE at Glance
IFB at glance
Trading Halts & Delays
After the dramatic fall in the oil prices, reaching an agreement on nuclear negotiation is considered as the only way for rescuing Iran’s economy. The market shows more correlation with the trend of negotiation than before. Currently, the market is susceptible to polarization. Some shares are submitting good reports which are not dependent to the result of negotiations or the oil prices. In the coming week more emotional behavior is expected from investors with regard to ongoing political talks.
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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