SMEs to Open in Iran’s Capital Market via IFB Channel
Market News
- Today, 10% of Gameron Petro-Industry’s shares, equal to 6 mn shares, were initially offered in the Small to Medium Sized Enterprises (SMEs) market in Iran Fara Bourse, which is a major economic driver in developed countries; this will also act as the official opening of this market in Iran’s Capital Market. The most important point in this IPO is that only institutional and organizational investors were allowed to register buy orders.
- Being obliged to sell their excess assets to raise their capital at one hand and minimize their non-banking activities on the other, some officials active in this area have submitted a letter to the first Vice President demanding for postponing this matter at least for a year hoping for the recession in the property market to end; their financial statements prove that such banks have done huge investments in the real-estate market in the past years.
- In a visit with the Head of Iran Chamber of Commerce, Industries, Mines and Agriculture, the Ambassador of Syria stated that Iran’s private sector is on top of the list for Syria reconstruction, both in terms of its economy and infrastructures, which calls for preparing a plan in advance.
- Based on its latest statistics, the CBI announced the inflation rate in Azar month (21 Nov- 20 Dec) to reach 8.6%, registering no difference compared to the month before; however, the Consumer Price Index for the urban areas hit 252.9, which shows a 1.4% rise.
Corporate Earnings
- With is firstly estimated budget set at IRR 1,551, Kharg Petrochemical has managed to cover 73%, equal to IRR 1,256, over its Q3 for the period ended 20 December 2016; it has also increased its EPS by 11% to stand at IRR 1,718.
- Iran Tractor Mfg. has declined its EPS for the FY ending 21 March 2917 based on its H1 performance by 22%. The company has succeeded in covering 48% of its predicted EPS of IRR 64.
- An official in Esfahan’s Mobarake Steel announced the signing of the first BOT contract with the Finnish Ecofer Company worth 7.2 mn euro.
- After its Extraordinary General Meeting , the board of directors of Chadormalu Mining and Industrial announced that the company is to conduct the second phase of its 24% capital raise plan based on claims due and paid-in capital; therefore, the company’s capital will reach from IRR 28,215 bn to IRR 35,000 bn.
In the Market
Among names in the Chemicals sector, those which produce methanol were positively traded in a way that Zagros Petrochemical and Shiraz Petrochemical closed with buy queues. Some other like Kharg Petrochemical (+3.13%), Sina Chemical Industries (+2.32%) and Kermanshah Petrochemical Industries (+1.98%) ended above their flat lines. Initially offered today, Gameron Petro-Industry was named as the highest value traded share by IRR 180 bn.
Nearly all names in the Automotive industry finished in the red territory with the Right of Pars Khodro being titled as the highest value traded share. Merely Bahman Diesel (+1.93%), Ravan Fanavar Industrial Engineering (+0.99%) and its Right (+2.04%) and Motorsazan Iran Tractor (+.39%) ended above their flat lines.
The majority of names in the Metals industry also went through positive trades mainly due to the rise in dollar and commodity prices. Many symbols like Iran Mineral Processing, Zarin Ma’dan Asia and Sepanta Steel finished with buy queues. Among the few negative tickers, Iran Pipe and Machinery Mfg. (-0.6%), Hormozgan-e Jonoub Steel (-0.32%) and Navard Aluminum (-0.94%) can be named.
Except from Iran’s Zinc Mines Development (-1.77%), all tickers in the Iron Ore space went through positive trades and some like Bama, Bafq Mines, and Damavand Mineral finished with buy queues.
Symbols in the Oil Products industry were rather negatively traded; Sepahan Oil (+0.09%) and Tabriz Oil Refining (+0.46%) closed their flat lines. The CEO of National Iranian Oil Products announced that since the beginning of 1396 (2017/18), two petrol production units will be launched in Bandar Abbas Oil Refining and Lavan Oil Refining.
The Deputy Economy and Financial Affair Minister expressed hope over the reopening of Banking tickers in the upcoming sessions due to the improvements seen at the macroeconomic level which might lead the CBI, the Economy and Financial Affair Ministry and banks to a solution preventing the imposition of retained loss on banks and their shareholders.
Based on the recent statistics by the Bime Markazi Iran, Parsian Insurance was placed first, for the 4th time, in terms of financial solvency; however, the respective share finished in the -0.1% zone. Saman Insurance (+4.06%) and Kosar Insurance (+2.69) were among the few tickers closing in the green.
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