Market News

In Islamic finance Istisna is a contract to manufacture goods, assemble or process them, or to build a house or other structure according to exact specifications and a fixed timeline. Payments are made as work on the property is finished. Tose’e Melli Mining and Industries Company is raising 1.62 trillion Rials, $45.39 mn through the first-ever sale of Istisna Islamic bonds in Tehran Stock Exchange on Nov. 23. Paying 23% interest annually and maturing in three years, the bonds are issued for funding and completing two iron ore concentrate and pellet plants with a 2.5 million-ton annual output. The plants are located in the city of Sangan, northeastern Khorasan Razavi Province; one is 60% complete while work on the second plant has progressed by only 25%. The bonds will pay interest quarterly. Tose’e Melli Investment Company, as Tose’e Melli’s parent holding, is guaranteeing the bonds. The plants are expected to be complete by early 2017.

Corporate Earnings

• Holding USd 19.61 mn in capital, Kavir Tire Company has released its first budget for the FY ending 21 December 2016; the company has predicted to make a USD 0.02 EPS, which shows 455% decline compared to the a USD 0.10 EPS made in the same period last year.
• Goltash Company released its first estimated EPS for the FY ending 21 December 2016. According to this report, the company has plans to recognize USD 0.06 EPS, demonstrating 14.2% rise, compared to the current year. In addition, the company has predicted a rise in its operating profit due to the increase in one of its products’ profit margin.

In the Market

At the end of today’s trading session, low volume trades were observed in the Construction sector; the recently released financial reports were not satisfactory and the housing sector market is still dominated by a deep recession.

Tickers in the Sugar sector ended in the red; as has been mentioned, many analysts had warned about the speculative pressures as the main reason for the earlier surges in the share prices of the sugar companies.

The Insurance and Civil Pension Fund sector, positive fluctuations were seen, despite the low level volume trades. Ma Insurance Company continued its price hike which has been due the company’s capital raise plan by 300%. According to the latest news, the company is going to raise its capital in two phases such that in the first phase, the capital will be raised up to 100%. Generally speaking, the sector enjoys fine fundamental conditions, regarding the released financial statements. It has also been heard that Kosar Insurance Company is about to start the second phase of its capital raise plan in order to increase the company’s capacity to take risk and to meet the requirements obliged by the regulations to spread its activities, based on its investors’ paid in capital.

In the Transportation sector, investors were more tended towards selling their shares; most tickers, except from symbols such as Tidewater Middle East Company were negatively traded. This company has positively adjusted its EPS due to the profit gained by selling one of its fixed assets. In addition, Tuka Rail Company seems to enjoy good fundamentals and taking the government’s approach towards developments in rail transportation services into account, it appears to have a bright future ahead.

Finally, in the Chemicals sector, gas feed price, oil price and exchange rate are the three factors influencing symbols in this sector; exchange rate tends to increase while oil price seems to continue its plunge; besides, the issue of gas feed price has not been yet resolved. However, the effect of exchange rate increase on companies’ profitability is undeniable. As a result of such ambiguities, investors do not seem to be capable of making proper decisions and are awaiting the right time to invest.

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TSE at a Glance

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Summary of Trades

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TSE Top 10 Stocks

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 TSE Major Sectors’ Daily Performance

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Trading Halts and Reopenings

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IFB at a Glance

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: Mojde Rezaee at m.rezaee@agah.com