News and Views

The value of Iran’s non-oil trade exceeded $48.2 billion in the first seven months of the current Iranian calendar year, which began on March 21, according to the Iran Customs Administration. Iran exported $24.131 billion of non-oil goods in the seven-month period, while imported $24.077 billion of non-oil goods, the IRNA news agency reported on Tuesday. Exports and imports were declined by 15.09 percent and 21.09 percent, respectively, compared to the same period last year.

European firm invests $6b in Iran’s power sector

A European firm signed a deal with the Iranian Energy Ministry for making $6 billion investment in Iran’s power sector, Iran’s Government Spokesman Mohammad Baqer Nobakht announced in a press conference held yesterday. The official said the European firm will invest the mentioned fund for the construction of four combined-cycle power plants with a total electricity generation capacity of 3520 megawatts and also a wind farm in Iran, the Iranian government’s official website dolat.ir reported.

Germany’s Bavaria hopes for strengthened economic ties with Iran

Tehran Chamber of Commerce, Industries, Mines and Agriculture and the Union of Bavarian Economy signed a memorandum of understanding, following the opening of the German southeastern state’s trade office in Tehran on Monday. “Bavaria is all set to enter into negotiations with Iranian economic players, particularly those from the private sector,” said the state’s Minister of Economic Affairs, Media, Energy and Technology Ilse Aigner, adding that the 130-member delegation’s five-day Iran visit is testament to their intention.

Iran’s petrochemical output to swell to 47m tons by year-end

Iran’s petrochemical sector is forecast to see an output surge to 47 million tons by the end of the current Iranian calendar year (started on March 21). Realization of the new capacity will be boosted by ethane production increases from phases 15 and 16 of South Pars gas field, the SHANA News Agency quoted from Ali-Mohammad Basaqzadeh, the control manager of Iran’s National Petrochemical Company (NPC).

Corporate Earnings

Mines & Metals Development Investment Co. (MMDIC) announced its Q2, 2015 EPS at USD 0.003 with USD 626.3 mn capital, which shows 28% negative adjustment. This holding projected to deliver 30% of its net profit as dividend to the shareholders for FY2015/16. The reasons for the poor results are 1) the 23% fall in the profit of the investments and 2) the 49% drop in the revenues, resulted from investments sales. Major portfolio composition of MMDIC is in iron ores, steel, and cupper, but the ongoing recession in the domestic economy, combined with global commodities depreciation, makes the anticipated profit realization farfetched. The NAV per share is USD 0.05, but the latest price on the TSE leaderboard was USD 0.03, showing it was being traded at 62% of its NAV.

 In The Market

Today, the market adopted a bullish trend. In the Banking sector, low-range volatilities were witnessed and institutional investors were more active. Among these symbols, Bank Sina experienced a better trading session; experts believe that this bank enjoys better fundamentals than others. However, the most important reason has been the talks about the Telecommunication Company’s shares transfer. Besides, Bank Parsian’s plan to raise its capital by 50% were approved.

The Construction sector also ended in the green and some tickers ended with buy queues. This sector’s P/E ratio is less than the market average and the released financial reports were not as bad as expected; however, this sector mostly attracts speculators’ attention.

In the Oil Products sector, the contradictory news on the annual subsidy allocation to this sector has been the reason for its growth. In fact, experts believe that in case of receiving its delayed subsidy, this sector can properly adjust its budgets.

The Telecommunication sector has been observing a positive trend recently; it seems that the reason is the probability of French investment in this sector. However, they think that this sector enjoys a proper P/E ratio, too.

In the Insurance sector, low-volume trades were seen; Dana Insurance Company and Asia Insurance Company ended in the red. According to the report released today, the insurance premiums have faced a drop in the first half of the current year.

And in the Chemical sector, the hike in foreign exchange price and the optimism towards the 8 cent gas feed for this sector resulted in more positive trades in this sector; however, it seems that investors prefer to behave very cautiously.

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TSE at a Glance

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Summary of Trades

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Trading Halts & 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