Iran’s Capital Market Awaiting New Policies
– With Iran’s Economy recovering after the sanctions removal, curbing inflation, and positive economic growth rates, experts believe that such growth is expected to spread to Iran’s capital market soon. This will be facilitated if President Rouhani continues to adopt the same economic policies like those in his first term. However, it will remain flat until the 12th administration states its new policies, which will directly and indirectly affect the capital market. Being all said, many assume that foreign exchange rate unification along with lowering the interest rate to be in line with the inflation rate are among impediments blocking the capital market growth and require the government’s attention.
– According to UNCTAD latest report, Iran’s foreign direct investment volume in 2016 has witnessed a 64% rise compared to that of 2015, reaching from $2,050 mn to $3,372 mn.
– An MoU was signed between Securities and Exchange Organization of Iran and Securities and Exchange Board of India to promote cooperation between these 2 regulatory bodies and is targeted an effective development of markets in both countries.
- Razi Glass Company has made IRR535 EPS for the FY ended 20 March 2017, registering 37% growth compared to the same period last year and covering 121% of its estimates. The company is also planning to raise its capital by 70%, from IRR 50 bn to IRR 85 bn, relying on its shareholders’ paid-in capital and claims, mainly aimed at financial restructuring and compensating its investment expenses.
- Rena Industrial Investment has realized IRR 67 EPS for the 6-month period ended 20 March 2017; the company has gone through a 20% decline in its profit mainly due to the IRR 166 bn drop in its other non-operating income.
- Shahed Civil & Development has recognized IRR 204 EPS, covering 97% of its projections; it has gone through a 246% growth compared to the previous year.
In the Market
Bahman Group Board Members have applied for 97% capital raise permission from IRR 5,070 bn to IRR 10,000 bn mostly based on its retained earnings; directing this ticker towards a buy queue, this news pushed other names in the Automotive towards the green area as well. During its last trade, Khavar Spring Mfg. went up 4.9%.
Names in the Metals industry witnessed positive movements in line with global commodity prices recovery. Iran Mineral Processing and Zarin Ma’dan Asia closed with buy queues, although Khorasan Steel and Steel Navard and Parts shed more than 4%.
Spreading to the Iron Ore industry, Kama and Bafq Mines finished with buy queues, following the rise in global zinc prices; the same was seen in Damavand Mineral.
Crude oil prices are still on a descending trend. Despite their positive start, symbols in the Oil Products space went under sales pressure, led by Bandar Abbas Oil Refining (0.56%).
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