Iran’s Budget Bill Submitted in December
* The government’s spokesman announced the submission of Iran’s budget bill by the government to the Majlis on December 5th. Among its unique features, he referred to the resource allocation performance to each governmental body based on their performance rather than the traditional criterion of their treasury inflows.
* In a meeting with the Italian ambassador to Iran, the Director of the Organization for Investment, Economic and Technical Assistance of Iran negotiated conditions for a financing deal and the role Italian banks and financial institution could play in line with deepening economic and business ties between the two countries.
* With regards to the decisions to increase trades between the two countries from $359 mn to $5 bn by 2021, a Pakistani delegation, including those active in agriculture and trade is planning to pay a visit to the country on October 31st to sit with their peers in the Tehran Chamber of Commerce, Industries, Mines and Agriculture.
In the Market
Among their disappointing performance reports in the first half, Irka Part San’at in the Automotive industry announced to make IRR 142 EPS, increasing its previous estimate of IRR 128 by 11%; it has, however, only covered 7% equal to IRR 10 over the said period. Following the recently seen trend, the most names continued losing their prices. After its reopening, Saipa went through sales pressure and faced a sell queue. Irrespective of facing heavy sales pressure early in the session, which hopefully did not last, Bahman Group has been heard to be focused on improving efficiency and cost management; in fact, the company has settled a large part of its bank debts; it is also serious to reduce its activities non-related with its major operation and new contracts are under process. Iran Khodro has also signed an agreement with Hyundai Powertech Company to design and produce 400,000 sets of gearboxes annually.
Among positive trades in the Iron Ore space, Iran Manganese Mines has steel caught investors’ attention, started as the result of its inspiring financial report; the company managed to cover 55% of its budget in the first half. According to the statistics, Iran has exported products worth $4.77 bn in the first half of the current year, posting a 4% and 8% rise in value and tonnage, respectively.
In the previous session, a block of Hi Web shares, listed on the Information and Communication industry, was traded which raised hopes for another ascending trend in the share and resulted in the share nearly hitting its high; it turned out today that the block was purchased by another subsidiary of the parent company which then led to rather balanced trades in today’s session.
Among names listed on the Food & Beverages space that were mostly positively traded, Minoo Sharq Food Industries Company’s officials announced their estimated growth in the confectionary and sweet industry in the second half of the year; the company saw a demand growth. Shahdab-e Nab-e Khorasan, Piazer, Pak Dairies and Pakdis hit their high as well.
Out of the equity market, US dollar has gained against rial in both open and official markets; it was traded for IRR 40,220 on Tuesday in the open market, posting a IRR 40 growth in comparison with Monday’s close; continuing its growth, it stood at IRR 40,320.
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