Iran Eyeing Investment Opportunities
– An MoU was signed between Iran’s Minister of Industry, Mine and Trade and the Iraqi Deputy Minister of Mines, Industries and Social Affairs on the renovation and reconstruction of Iraq relying on the Iranians’ technical knowledge and expertise. Referring to the presence of 5 Iranian banks in Iraq and Iraqi Rasheed Bank application to open a branch in Iran, the re-establishment of banking relations was also stressed; this has the potential to move sectors like cement, engineering as well as metals among some other.
– Aimed at improving competition and taking the most out of the international potentials, Bank Sina has opened accounts in 13 active foreign banks, including a few located in Switzerland, Italy, Austria, Russia and Spain. To facilitate Iranian’s access to money-transfer services, it has established correspondent relations with 25 banks.
– Stressing on the necessity of lowering the current interest rate, an official announced the private banks’ agreement to lower their interest rate in harmony with state-owned banks.
- Shiraz Oil Refining has made IRR 1,993 EPS for the FY ended 20 March 2017; proving a 625% rise, the company has managed to cover 198% of its last predictions.
- Pegah-e Fars Dairy has made IRR 160 EPS for the 3-month period ended 21 June 2017, registering a 78% growth and covering 23% of its projections.
- Asan Pardakht-e Persian has recognized IRR 610 EPS for the quarter ended 21 June 2017; covering 26% of its estimates over this period, it has made a 54% growth compared to the same period last year.
In the Market
A rather negative atmosphere was seen in the Automotive industry with a few tickers, i.e. Motorsazan Iran Tractor (4.9%), Nirou Mohareke (3.95%) gaining the most. The CEO of the IME said that those automakers who offer their products in the exchange market will benefit a 10% tax exempt; this is aimed at pulling this sector out of recession. Iran Khodro Investment Development ticker was reopened at IRR 3,300, shedding 1% after holding its general annual meeting and distributing a IRR 70 dividend. Mehrkam Pars ticker was also reopened at IRR 1,420, with not much tangible changes.
The news broke out again on the upcoming settlement of the government debt to the sugar producing companies; this pushed most tickers in the Sugar space towards facing a buy queue.
Metals prices have faced a growth in international markets, mostly led by zinc. A large number of companies listed on the Metals group, except from Iran Pipe & Machinery and Alumrad which lost more than 4%, settled with modest gains. Arfa’ Metal & Steel faced a buy queue.
Abadgaran-e Iran Tourist and Welfare Corporation in the Construction sector faced a buy queue for the third consecutive session while the rest of the group went through negative trades.
A 3.4% growth was seen in iron ore prices in Futures Contracts in Chinese Exchanges; this translated into positive trades in the Iron Ores sector, except from Iran Manganese Mines (-3.61%). In its annual general meeting, Gol-e Gohar Mining & Industrial distributed IRR 280 dividend per share; the company was placed first in producing iron ore concentrates; it has also proved a 38%, 35% and 42% rise in concentrate production, sales figures and production and efficiency per capita in the first quarter of the FY ending 20 March 2018.
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