Iran Banking to develop even further!
- The CEO of Bank Sina announced the establishment of correspondent relationship between this bank and the Swiss BCP Bank, which enables it to transfer Swiss Franc as well as Euro. It was also added that all matters such as receiving finance and issuing letters of credit will now be available as a step to expand international operations by Bank Sina. This would expand Iran Banking sector even further.
- The bright future anticipated for Iran-Australia business relations in the post-sanctions era has moved the Servcorp Company to open a branch in Tehran, whose opening ceremony took place on December 3rd with the Australian ambassador to Tehran present. As a multinational organization offering IT services and products, this listed company on the Australian Stock Market is active in 150 business centers in 52 cities in 21 countries and Tehran Office is considered as its 7th offices in the Middle East.
- Following our series of news on the Budget Bill submitted to the Majlis on Sunday, the comparison of the bills for the current year and the New Year shows that the suggested oil price has experienced 25% increase to stand at $50 per barrel, which will result in $33 bn total income by selling 2.42 mn barrels per day, considering IRR 33,000 for 1 dollar. This increase has happened due to the outcome of the recent OPEC members meeting where Iran was allowed to produce and export crude oil with no special limitation, enabling it to regain its share of the global oil market.
- According to an official in Middle East Mining Industries, the second unit of pellet production with 2.5 mn ton as annual capacity was exploited in Sirjan in Kerman province. Referring to the same unit which was previously exploited in Zarand town, the third pellet production unit with 2.5 mn ton annual production capacity will also be exploited in Boutia town in Kerman province within the next few months.
- Yazd Alloy Steel Industries has released its audited financial reports for the first half of the FY ending 19 March 2017; the company has realized $0.002 EPS which demonstrates a 10% growth compared to that of the same period last year, covering 32% of its firstly predicted budget.
- Parsian Insurance has made $0.005 EPS over the 6 month period ending 21 September 2016, which shows a 1% rise, covering 33% of its estimates.
- Releasing its audited financials for the H1 ended 21 September 2016, Kayson Company has materialized $0.001 EPS, showing a 257% increase compared to the prior year.
In the Market
The majority of tickers in the Chemicals sector ended above their flat lines, mainly due to the increase in us dollar and oil as well as methanol prices. Taking a look at the budget bill for the next Persian year, it is realized that the government has increased its reliance on oil income from 23% to 35%, which can itself calls for the US dollar price hike. As the result, Zagros Petrochemical faced a buy queue early in the session; Khark Petrochemical also faced a buy queue for the 4th consecutive session. Kermanshah Petrochemical and Shiraz Petrochemical also closed with buy queues.
Based on the agreements made between OPEC members and non-members on freezing the oil production, no significant drop in oil price is predicted; however, it does not seem likely to hit $60 area, either. At the end of today’s session, symbols in the Oil Products space traded in a balanced tend. It has been heard that 30 companies have announced their readiness to enter two new projects in tar production and condensation units of Lavan Oil Refining; the respective share finished in the +.63% zone.
Just like the previous session, despite the negative trades among Cement industry tickers due to entering a correction zone after benefiting shareholders with a 30% profit, symbols listed on the Construction group went through balanced trades. Despite the whole red sector the other session, Oromia Cement could end in the +4% zone; officials in this sector have planned to export more than 20% of the produced cement in the country in the coming year.
The price of lead, zinc and copper has experienced a growth in international markets. As the result, all names in the Iron Ore were positively traded and nearly all such as Gol-e Gohar Mining and Industrial, Chadormalu Mining and Industrial as well as Saba Noor Mineral and Industrial Development faced buy queues. However, the increase in the interest rate by the Federal Reserve at the end of December is predictable, which can shrink commodity prices, which must be taken into consideration.
The positive atmosphere running those sectors which are dependent on global commodity prices has in fact marginalized the Automotive industry, which used to lead the market; this has also been intensified with the not-satisfactory financial reports of these companies and the ambiguities over the continuance of the JCPOA especially among individual shareholders. As the result, most symbols ended in the red; however, names like Electric Khodro east and Iran Tractor Casting ended with buy queues.
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