SEO Remains the Sole Regulatory Body in Iran Stock Market
- Referring to the Securities and Exchange Organization of Iran’s major focus on the Iran Stock Market, the head of this organization announced that investment funds and investment banks will remain under the SEO supervision and regulation and there is also no need to establish a separate market to trade debt security due the low debt to stock market volume ratio. Stressing on the profitability of the stock market in the long run, Dr. Mohammadi defined the debt market as complementing the stock exchange. Being asked on the necessity of receiving a certificate from the Central Bank of Iran for investment funds and banks, he also replied that such bodies need to obtain such certificates from the SEO based on the law.
- Following the government approval to change Iran’s monetary unit from Rial to Toman in early December, the head of Majlis Economic Commission referred to the heavy cost of reprinting all Iranian banknotes and added that at least a 6-month period will be required to implement such a plan in the country.
- The Deputy Minister of Industry, Mine and Trade announced the opening of credit lines for 2 joint venture projects by China and Germany. The Aluminum plant project contract inked with the Chinese is worth 46 mn euro repaid in 2 years with zero interest rate; the German have also supplied equipment worth 40 mn euro to launch graphite electrode projects, which will be repaid within 3 years.
- Pouya Investment Company ticker, as a subsidiary to Tadbir Investment Company, was listed on Iran Fara Bourse to be initially offered soon. With IRR 2000 bn in capital, the company has estimated to realize IRR 91 EPS for the FY ending 18 February 2017.
- Empowered by a major shareholder, Bank Eqtesad Novin sold a 22.96% block of Silica Sand Mfg. at IRR 2,200.
- In its unaudited Q3 reports, Rail Pardaz-e Seir has realized IRR 45 EPS for the FY ending 20 March 2016, covering 118%; this figure registers an 800% growth in comparison with that of the same period last year.
In the Market
With the Overall Index down at 79,691 point level in the last session in the week before, experts assume that the reopening of halted tickers, which results in higher liquidity in the market, including Saipa Group ticker in the Automotive space, will add a positive flavor to the Automotive space and therefore, the market. Having released its audited H1 report, the company has covered 13% of its estimated IRR 102 EPS, with IRR 40000 bn in capital.
Higher demands were seen among symbols in the Automotive industry and most ended above their flat lines. Iran Khodro Development (+4.6%) and Charkheshgar (+4.07%) faced buy queues right from the start; the reason might be the decline in greenback, which no one knows will continue or not. Iran Khodro (+3.52%) was also highly demanded. Indamin Shock Absorber also closed with a buy queue. Nasir Machine Engineering (-1.52%) and the Right of Rena Investment (-47.98%), on the other hand, finished in the red.
Despite the halting of Saipa Group ticker for 2 months, positive news has been heard from this group of which the signing of an agreement between Pars Khodro and Nissan, the capital raise in one of its subsidiaries as well as the significant increase in spare part mfg. in this group can be named.
Being in the correction phase, names in the Construction space started to see positive trades, especially when the sell-off pressure over the industry leader, i.e. Tehran Construction and Renovation (-1.83%) in the past sessions was lifted. After 4 sessions with price falling, Iran Construction Investment (+3.71%) finished in the green after facing a buy queue during the session.
Although the majority of tickers in the Cement group went through negative trades, technical experts believe that their correction phase is about to end. Among symbols, Doroud Cement, Sepahan Cement, Ouromie Cement, Hegmatan Cement and Shomal Cement closed in the green and less sale pressure was observed in the industry.
Despite starting the session strong, names in the Chemicals industry gradually went through negative trades triggered by the news released on the discount cut for petrochemical companies’ feedstock. As the result, except from few symbols like Pardis Petrochemical (+2.39%), Pars Pamchal (+3.55%) and Maroon Petrochemical (+1.96%), the rest finished in the red territory.
Names in the Oil Products also started with positive trades; however, the more we approached the final hours, most oil refining companies like Tehran Oil Refining (-2.2%), Lavan Oil Refining (-1.62%) and Oil Industry Investment (-1.68%) turned into red. Sepahan Oil (+4.87%) and Iranol Oil (+4.43%) closed with buy queues.
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.
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