JCPOA Did Move Iran’s Banking and Economy
Market News
* Stressing on the undeniable outcomes of the JCPOA in Iran’s Banking and Economy, the CBI governor stated that 60-70% of expectations from this deal have been materialized and now, 90% of operations in the banking area are possible. Directing the part of banking operations done through the exchange houses channel towards the banking sector, Mr. Seif mentioned this bank’s efforts to revive and resume the relations between Iranian banks and their foreign counterparts, which is hoped to lead to more practical results soon.
* The Head of IDRO announced the signing of 7 contracts out of 19 MoUs with France and stated that the joint products of Iran Khodro- Peugeot and Renault-Saipa Group will be offered early 1396 Persian calendar year (2017/18); Mr. Moazami also announced France’s determination to fully implementing the JCPOA.
* According to the minister of energy, in the post-sanctions era, Iran has attracted energy projects proposals worth 10 bn euro mostly from Russia, China, Germany and South Korea; he expressed hopes to materialize and implement over 2 bn euro worth of projects until the end of the current year. Celebrating the anniversary of the Islamic Revolution over 1-10 February, Mr. Chitchian added that more than 5000 projects in the field of energy are to be started or launched.
Corporate Earnings
- Based on its Q3 performance and with IRR 240 bn in capital, Zahravi Pharmaceutical has covered 79% of its budget, i.e. IRR 520 bn net profit out of IRR 650 bn, for the FY ending 29 March 2017. The company has launched a new product line, which saves the country from annually importing medicine worth 6 mn franc from Switzerland.
- Referring to the Head of the Central Insurance of Iran stressing on transferring imposed risks on re-insurance companies to foreign ones, the CEO of Amin Re-Insurance Company announced negotiations with German companies’ officials. He also insisted on these companies to reach their capital up to IRR 4000 bn to enable them act at international levels. Mr. Kiaee also called the company’s joining the International Insurance Society (IIS) very important as the first Iranian company accepted in this society; this allows the company to attend international events along with well-known insurers. Holding IRR 20300 bn in capital, the company had announced to realize IRR 203 EPS for the FY ending 20 March 2017.
- Based on its unaudited Q3 report for the period ended 20 December 2016, Pegah-e Golestan Company has recognized IRR 727 of its estimated IRR 722 EPS; the company has positively adjust its EPS by 15% to stand at IRR 830.
In the Market
SEO officials have announced that the tickers of Bank Saderat and Bank Tejarat will be reopened until the end of this week. The CEO of the SEO has stressed again on the importance of lowering the interest rate on bank deposits. After sessions of negative trading after its reopening, Bank Mellat (+2.71%) finally faced a buy queue; although it is worth at such price range, experts believe that Bank Sina (+0.19%) is the most valuable in the group; besides, 11 mn shares of Bank Sina were block traded in the retail market.
The majority of tickers in the Metals industry were positively traded with Iran Mineral Processing and Yazd Alloy Steel Industries closing with buy queues. An official in Esfahan’s Mobarake Steel (+0.07%) announced that steel manufacturing cost will decrease from next year where pellet mfg. factory of Sangan starts working. Besides, after quite a time, the 322% capital raise plan for Esfahan Steel, equal to IRR 13000 bn, was approved in the company’s general meeting.
As the result of the positive atmosphere created by the presence of the French delegation in Iran, names in the Automotive industry witnessed positive movements until the middle of the session such that Saipa Group faced heavy buy queues during the session several times; as was said before, it has been heard that Saipa Diesel is to be sold soon; the ticker eventually ended in +4.88% area. Although starting strong, Iran Khodro was expected to do the same as Saipa; but, demand for this ticker gradually declined and it finally closed in +0.79% zone. 12.6 mn shares of Zamyad were also block traded in the retail market.
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
