Iran and Russia Implementing the Deal
Having signed a 300 mn euro worth contract with the Iranian party in February on supplying wagons within a 3 year period, an official in Russia’s United Wagon Company announced its actual implementation in the near future. The deal shows that 1,100 wagons will be imported within 2 years and 4,900 ones will be produced in the country and 3 Iranian companies will participate in producing them. This announcement was made on the sideline of the 5th International Exhibition of Rail Transportation, Related Industries and Equipment where Tehran is host to about 300 companies, both local and foreign, from Switzerland, Ukraine, Spain, Russia and Germany.
In the Market
With many ups and downs in the recent sessions, the market still awaits the result of Iran’s Presidential Election, which has made investors take a rather conservative approach.
Following the announcement of another cut in oil production by the energy ministers of Saudi Arabia and Russia from the middle of the current year, Brent crude went up by 1.6%; this has been aimed at bringing stability back to the market. Nearly all names in the Oil Products group escaped the session with a moderate win with Bandar Abbas and Esfahan Oil Refining companies facing buy queues in the middle of the session, which did not last until the end.
A similar trend was detected among symbols in the Chemicals space led by Iranian Petrochemical Investment Group, which closed with a buy queue. Tuka Paint Steel and Abadan Petrochemical gained 4% as well.
The last phase of negotiations between IDRO and Renault has started since the other day and is expected to be signed tomorrow. Besides, after 39 years, Citroen Company has re-entered Iran and officially started its activities; this led to the formation of Saipa Citroen Company, having changed Saipa Kashan Company’s board. These pushed the whole Automotive industry into the green territory, led by Saipa. Among spare part mfg. companies, Mehrkam Pars and Mehvarsazan Iran Khodro gained the most with 4.34% and 3.25%.
Companies listed on the Metals space went through rather balanced trades; Iran Ferrocilis and Yazd Alloy Steel went up the most. Such a downtrend was also observed in the Iron Ore sector.
In line with adding to Iran’s non-oil exports, experts believe that dairy products can produce high value added for the economy being on the forefront of exported food exports. Based on statistics, figures of volume and value of such products have gone through a 10% and 25% rise, respectively compared to the previous year. More than half tickers in the Food and Beverage sector ended the session in the green with Margarin, Pak Dairies, Pakdis and Pegah-e Fars Dairies closing with buy queues. An official also discussed the probability of a 7% rise in 3 dairy products in the near future.
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