• The ironmongery union chief announced a reduction in prices from 1000 to 1200 IRR in metal market and declared that Esfahan Steel Company (ESCO) is going to provide liquidity through selling its products lower than the market price. The same procedure can be generalized to other steel companies. There is also news that in order to sell their products, ESCO has also decided to retail in market. It could be generally said that with regard to the recession in the country, particularly in construction sector, this trend may continue and unsatisfying reports will emerge gradually from the sector’s companies as a result of their sales.

• The Shanzand Petrochemical Co. decreased its forecasted EPS for the current financial year. The company’s EPS for current financial year ending 20 March 2015, had been forecasted 1,200 IRR with 1,200 IRR bn capital which was changed to 1,239 IRR after raising capital to 3,600 IRR bn. Based on actual performance in 9 months the company reduced this amount by 15 % to 1,053 IRR. Forecasted volume of production has been changed slightly due to using heavy feed instead of lighter ones. The company announced that the management is hopeful for reaching this goal since the overhauls were accomplished as they were planned. In the 3Q report, the sale shrank by 11 percent compared to same period last year. While the net income shows 20 percent decline compared to same period last year. The margin return by 2 percent decline reached 18%. In the 3Q the company made 647 IRR return for each share and could cover 61 percent of its forecasted annual EPS. By considering the new capital, the company’s real return in 9 months fell by almost 34 percent compared to same period last year.

• GolGohar Mining & Industrial Co. along with other iron ore companies like Chadormalu, which are faced with a long term decline in prices, seeks to have an increase in its capital and has released a transparency note about it. The company will have its capital increased from 18 to 30 IRR bn. The company has taken the necessary measures to obtain the Stock’s license for capital raise.  The company is now faced with new challenges of a sharp decline in global iron ore prices and determining the 30% and then 25 % usufruct. Worse than that, the price per share of GolGohar has dropped 28% during the last three month from 5710 to 4070 IRR.

• Shirvan Sugar Co. forecasted loss for current year financial year. The company recognized 64 IRR losses in its 3Q1393 report. While the company, with 100,692 IRR mn capital, could make 387 IRR return for each share in 9 months period last year and could reach the total return of 440 IRR for each share in 1392. It must be said that the company recognized 40 and 224 IRR losses for each share respectively in first and second quarter this year. Decreasing value of sales, besides increasing cost of buying beets are the main reasons for this weak performance. With regard to this year bad weather and growing conditions the exacted sugars from beets have decreased significantly. Also the Shahd Sugar Co. in its 2Q1394 report announced 61 percent negative adjustment for its forecasted EPS, while it made 671 IRR return for each share and covered the 82 percent of the forecasted overall return.
  

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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 was influenced by the Leader’s yesterday speeches more than anything else. Ayatollah Khamenei’s speech contained positive points as well as some ambiguities, the major drawback of which pointed out to a single-step agreement. This is in contrast with previous agreement between Iran and the West. Generally, the trade volumes, as in previous days, were considerable and there was an excitement in the market. As it was forecasted before, there is a greater selling pressure as we are approaching the holidays. But the interesting point is that even in low prices, the selling pressures are reduced. In the Revolution Anniversary holiday, the remarks of official authorities and their positioning around negotiations will have a definite effect on future trading trends.

 

DISCLAIMER:  This document 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