- The central bank of Iran announced 15.7 inflation rate for the tenth month of current Persian year ending 20 Mar 2015. The inflation rate has declined compared to previous months with slower momentum. Based on this report the consumer price index had also a 16.3 percent increase in 12 months period ending 20 Jan 2015, compared with same period last year.
- The director of the Geneva-based Centre Arabe de Recherches et d’Analyses Politiques et Sociales (Arabic center of Social & Political Studies), said yesterday: “a positive atmosphere is ruling the new round of negotiations between Iran and group 5+1. Riadh Sidaoui also mentioned in an interview with Al Mayadeen Tv that it seems this positive atmosphere will lead to final and long term decisions. However, John Kerry, United States Secretary of State, mentioned earlier that there are still significant gaps and Barak Obama is prepared to halt nuclear talks with Iran if Tehran does not agree with conditions which approve its peaceful proposes.
- Pharmaceutical sector was the leader in today’s market. Most of the Pharmaceutical companies released their first forecasted reports. This strongly fundamental sector shows its power once again in current market rescission.
- The petrochemical companies are releasing their next year budgets gradually. No significant adjustment or changes has been made so far. Most of them take the rate of gas feed at around 8 Cents and the Urea Producers consider the Urea rate at around 9,000 IRR which sounds realistic. In addition, the weaker sales are estimated for next year which was also totally expected from this sector. However, it’s noteworthy to mention that due to recent upward trend in oil prices, the transaction of petrochemical products specially the PVCs has boomed in Iran Mercantile Exchange since last week.
- Most of the cement companies which have been releasing their next year budgets, predicted their next year return less than current year. The cement companies are facing significant problems in their sales due to current recession in construction and development projects. Moreover, main part of their sales was exported to Iraq which has been halted due to current tensions. These problems are expected to continue next year.
- Khorasan Steel Co. issued its first forecasted EPS for next year ending 20 Mar 2015. The company announced its EPS with 18 percent decrease compared to current year at 312 IRR. During the last few years, the company has followed a descending profitability trend. By considering 5,600 IRR bn Capital the company’s EPS for the last two years were 429 and 417 IRR respectively. The current year EPS is also estimated 379 IRR. In the next year budget the gross profit has been decreased by 13 percent and the operational return has been considered at same current year levels. However, the financial costs have been doubled compared with current year. This share has a low liquidity with specific risks. Last price was at 6300 IRR level. The 5600 IRR level is a strong support and the nearest resistance is at 7000 level.
- Iran Telecommunication Co. released its first forested report with 559 IRR EPS for next year ending 20 Mar 2016. The estimated return for each share has had 4percent increase compared with current year. The company also has estimated to suggest 455 IRR cash dividend in its next year general meeting. Although the forecasted income shows a 5 percent increase, the general and administration costs have jumped by 44 percent compared with current year. In addition the financial costs were also moved up by 31 percent. Holding with midterm prospects is recommended.
- Iranol oil Co. predicted to maintain its upward profit trend for the fourth continuous year. The company predicted net sales and income from services same as current year’s level in its next year budget. The net income has been increased by 400 IRRbn. The share of this company is being currently traded bullish at 12,390 IRR. After reaching 15,500 levels two months ago, the share price fell to 12,000 IRR. Buying and holding is recommended at this level by long and midterm prospects.
TSE at Glance
IFB at glance
Trading Halts & Delays
In reaction to John Kerry statements, the market started with negative trend today. In today’s market the traded share volumes declined while the volume of traded fixed income securities grew. Transferring to low risk bonds is not a good sign for market. However, the high sales pressure is not felt in the market. The issued next year budgets have moderated negative adjustments and are better than expected. The investors are waiting for automotive sector and big cap banks’ reports. No significant changes are expected in market trend unless there is specific news about negotiations.
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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