Petrochemicals to Weaken Iran Economy Dependence on Oil
- Over the 9 month period ended Dec ember 20, non-oil products, worth $19 mn, mainly petrochemical products and gas condensates, have been exported, hoped to gradually lower Iran Economy dependence on oil revenues; this figure registers a 20% rise compared to the same period last year.
- Referring to the 5-15% rise in petrochemical companies’ production in the first half of the current year, an official in this space announced the 10-20% increase in the second half. He also mentioned the 5-10% increase in export and 12-18% surge in domestic consumption. Besides, he estimated that current production capacity of 65 mn in the petrochemical industry ton will triple within the next few years.
- The minister of Industries, Mines, and Trades announced that investments worth $8.5 bn has been attracted in this sector since Rouhani administration took office; he elaborated that more than $5.5 bn has been obtained from foreign investment in the post-sanction era, naming European and Turkish investors among them.
- As the largest privatization case in Iran, 51% of Telecommunication of Iran Company’s shares, worth $1.95 bn, were sold to Mobin Trust Consortium in 2009, 20% of which was paid in cash while the rest were to be paid in 16 installments every 6 months. Due to its failure in fulfilling its commitments, Iran’s Privatization Organization has announced that it will call the revocation of this deal off unless they buyer pays off all its debt by January 9th.
Releasing its audited H1 financial statements for the FY ending 21 March 2017, Bahman Group has positively adjusted its EPS by 200%; while estimating to make IRR 18 loss per share for this year, the company has changed it to IRR 21 EPS based on its 6-month performance.
In the Market
Despite January 2016, international markets witnessed the growth in commodity prices in early 2017. In fact, the economic statistics in China, Europe and USA went beyond expectations, strengthening most stock exchanges and US greenback.
The market started strong with names in the Chemicals group pushing the overall index higher, which did not last until the end. Although some tickers like Saina Hygienic Industries (+3.92%) and Shiraz Petrochemical (+2.92%) closed in the green, Sina Chemical Industries (-4.12%), Petrochemical Industries Investment (-4.07%) and Zagros Petrochemical (-4.4%) finished beneath their flat lines.
After the release of metal prices, up to 1%, the majority of names in the Metals sector went through positive trades with Zangan Zinc Industry and Zarin Ma’dan Asia finishing with buy queues. Kimia-ye Zanjan Gostaran and National Iranian Lead and Zinc, on the other hand, ended in the -3% zone.
The agreement in late last year between OPEC members also directed oil prices higher by 2% to hover around $57 in the previous day; however, this trend fell to the $55 area today, dragging names in the Oil Products space down at first. However, in harmony with positive movements in Bandar Abbas Oil Refining, as the leader of this group, they witnessed better trades. Eventually, Tehran Oil Refining (+3.43%) and Pasargad Oil (+2.4%) finished in the green. The rumor has it that a 10% of Oil Equipment Industries Company will be initially offered to investors within the next week.
In line with global sugar price rise, tickers in the Sugar industry went through positive movements. Shirvan, Qouchan and Bojnourd Sugar (+1.13%) and Marvdasht Sugar (+1.74%) closed above their flat lines.
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