Iran Experiencing High Economic Growth
The latest report by the Central Bank of Iran indicates a 12.5% growth in Iran’s economy over the year ended 20 March 2017. As has been repeatedly mentioned by other authorities, the largest part of this growth, i.e. 61.6% is owed to the rise in oil production and its sales as the result of JCPOA struck, which led to the lifting of some sanctions; in fact, Iran managed to produce 3.8 mn barrels of crude per day during this period. Excluding the oil production role, Iran witnessed a 3.3% of growth. In its report, referring to the growth rates in different sectors, including 4.2% in agriculture, the CBI announced the construction industry as the largest laggard with a -13.1% growth rate.
- Mapna Asalouye Power Generation has managed to make IRR 2,368 EPS over the FY ended 20 March 2017; the company has covered 108% of its estimates and witnessed a 33% growth compared to the same period last year.
- The board members of International Construction Development Company has proposed to raise the company capital by 100% to stand at IRR 6,000 relying on shareholders’ paid in capital and claims due in order to do financial restructuring and adding to its financing power.
In the Market
Zinc price is gradually increasing in international markets; this dragged some names in the Metals industry into the green territory such that Kimia-e Zanjan Gostaran, Zangan Zinc Industries and Zarin Ma’dan Asia went up after a few sessions of struggling in the red. Navard Aluminum and Arfa’ Metal and Steel were the other closing in the green.
All names except from Bank Middle East in the Banking Group ended the session in the red; this bank has realized IRR 506 EPS during the FY ended 20 March 2017, which registers a 49% growth compared to the same period last year; it has also covered 114% of its latest estimates. Furthermore, the CBI announced the 16.4% growth in facilities granted to economic sectors in 2017/18 compared to the year before, reaching from IRR 569,000 bn to IRR 80,000 bn.
Despite negative trades in the Investment sector, Sarcheshme Copper Investment faced a buy queue right from the start; this ticker was reopened 41% higher the other day. Mellat Investment, Insurance Industry Investment and Atie Damavand Investment were the other finishing in the green.
The majority of names in the Chemicals space settled with modest gains with Maroon Petrochemical going up the most (+3.1%). Meanwhile, La’abiran was the major looser in today’s session, shedding more than 3%.
Although spare part mfg. companies listed in the Automotive group witnessed balanced and positive trades, symbols like Pars Khodro, Iran Khodro and Saipa Diesel ended beneath their flat lines. The sector still awaits the reopening of Saipa ticker, which is expected to move the group.
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