Interest Rate to Set Lower
Based on an understanding between the policy makers and banks’ CEOs, the floating interest rate will be paid on account and the certain interest rate will be calculated at the end of the fiscal year. Being originally based on the usury-free banking law, this was respected in our banking system only on surface while in fact, a part of interest on deposits paid used to be provided from other revenues or even shareholders’ equity within the past years. As the result, high and low interest rates will stand at 15% and 12%. In fact, the Money and Credit Council, as the body in charge, has attempted to prevent banks from resorting to non-operating income and recognizing unreal returns to cover their high interest rates to depositors; this is done to align the banking sector in line with the acting administration macroeconomic policies. In this regard, the Minister of Economy and Financial Affairs has demanded Bank Melli, as the biggest lender in the country, to act as the leader in implementing reforms in the banking space, including lowering the interest rate.
- Bandar Abbas Oil Refining has managed to make IRR 746 EPS over the FY ended 20 March 2017, posting a 1,676% growth compared to the same period last year covering 148% of its last predictions.
- Keeping IRR 300,000 mn in capital, Atie Data Processing has estimated to make IRR 1,352 EPS for the FY ending 20 March 2018; the company has covered 29% of such projection equal to IRR 394.
- Silica Sand has recognized IRR 67 EPS for the FY ended 20 March 2017, shedding 6% compared to the same period last year; it has covered 86% of its estimations.
In the Market
As one of the major problems in the TSE, credit crunch has happened owing to the halting of many tickers, which has been intensified with the upcoming general annual meetings, which results in the halting of even more tickers. This has postponed investors’ injecting further capital into the market, resulting in the low value and volume of trades.
With the general annual meetings of companies getting closer, the Computer space is estimated to report positive performances, which has recently caught investors’ eyes. Asan Pardakht-e Persian ticker was reopened 1.88% higher. Iran Arqam, Iran Data Processing and Kharazmi IT Development were also among the top gainers.
Names in the Construction industry were highly demanded, with Tehran Construction & Renovation, Abadgaran-e Iran Welfare & Tourism Corporation and Alvand Housing Investment going up more than 4%.
The majority of names in the Sugar group went through positive trades, including Qazvin Sugar, Sabet Khorasan Sugar and Esfahan Sugar gaining more than 4%.
Nearly the whole Automotive industry ended beneath their flat lines with Mehvarsazan Iran Khodro, Saze Pouyesh and Iran Khodro Diesel shedding the most.
Most symbols in the Metals sector, on the other hand, witnessed positive trades with Iran Pipe & Machinery closing with a buy queue; it has benefited its shareholders with nearly 30% within the past 10 sessions.
Oil prices have been on an ascending trend mostly due to hike in demand and reduction in reserves. With the majority of tickers in the Oil Products group halted, Iranol Oil was the only one finishing in the green (0.68%) while Behran Oil (-0.07%) and Pars Oil (-0.1%) settled with slim losses.
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.
To contact reporters: Inter@agah.com