Iran’s Economy Outlook
- In its latest forecast on Iran’s Economy, the Economist has announced Iran to experience 5.4% economic growth as well as one-digit inflation rate to hover around 9% in 2017. Besides, referring to the current administration’s success in bringing about economic and political prosperity, it predicted President Rouhani success in his second term.
- After the crawling increase in US dollar price to hit 37,430 IRR in the market, gaining 1,320 Rials over the past month, some concerns have popped up specifically over the implementation of the unification program defined by the Central Bank of Iran before 19 March 2016. In this regard, an official in the Banking and Monetary Institute assured that this price will not reach 38,000 IRR since there is no crisis in the country and referring to what was promised in Trump’s election campaign, no vulnerability is predicted.
- As a leading private bank in Iran, Bank Saman inked an MoU with DF Deutsche Forfait Group in the field of trade financing as well as offering services to investors interesting in entering into business with Iranian partners.
- In a meeting taken place between officials from Saipa Group and Bank Mellat, the CEO of Saipa Group stated that the group has managed to increase its production by 53% compared to the same period last year, contributing to about 0.5% of Iran’s Economy growth, which could not have been done without the support of the banking system and asked for the special attention to this industry as a key player in realizing the 5% economic growth. The CEO of Bank Mellat also stressed on the potential for growth, based on Saipa Group’s financial statements and expressed hope over the implementation of promises within the next month regarding the foreign exchange facilities, including opening LC.
- Holding $16.87 mn in capital and based on its Q2 activities in the period ended 21 September 2016, Abadan Petrochemical has estimated to materialize $0.01 loss per share, which demonstrates a 497% negative adjustment compared to its estimate in previous reports; the respective company has covered 52% of this amount in the 6 month period.
- Over its Q2 period ended 21 September 2016, Iran Merinus has realized $0.001 EPS, while it had made $0.007 loss per share in the same period last year.
In the Market
During the recent sessions, commodities, especially metals went through significant growth such that the price for 1 ton of copper is about to hit $6,000, experiencing more than 20% hike; the major reason has been the upcoming renovations in the US infrastructures as well as the demand growth in China as one of the major copper consumers. Experts believed that this positive momentum can spread to other metals. As the result, most names in the Metals industry ended above their flat lines, led by the National Iranian Copper Industries. Names such as Iran Minerals Processing, Alumrad, Zarin Ma’dan Asia as well as Kimiya-ye Zanjan Gostaran Mineral finished with buy queues.
The price of Iran’s iron ore (with 66% grade) in China ports also reached from $84 in the previous week to $93.5. Nearly all names, except from the Tose’e Melli Development Sukuk, closed in the green and Iran’s Zinc Mines Development as well as Bama ended with buy queues. In addition, 15 mn shares of Gol-e Gohar Mining and Industrial were block traded in the retail market. Despite the decline in its quarterly production, Chadormalu Mining and Industrial experienced an increase in its sales mainly due to its high inventory from last year, which seems to enable the company to cover its budget.
The demand for the Pharmaceutical companies increased such that tickers like Dr. Abidi Pharmaceutical, Kosar Pharmaceutical as well as Farabi Pharmaceutical faced buy queues in the first hour, while most going through positive trades.
Following the fall in global oil price, nearly all names, but Iranol Oil, Pars Oil and Pasargad Oil, in the Oil Products space started the session with negative trades. However, symbols in the Chemicals industry experienced better conditions in a way that Kharg Petrochemical and La’abiran finished with buy queues. According to the CEO of Jam Petrochemical, Japanese and Italian investors are interested to take part in this company.
TSE at a Glance
Summary of Trades
Major Sectors’ Daily Performance
Trading Halts and Reopenings
IFB at a Glance
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