- An establishment and operation license has been issued for the hundred and fiftieth fund in the market, Behshar Development Group fund, as a market maker. The funds which are dedicated to market making are not allowed to buy any other shares out of the subject of their activity. The main goals of lunching these kinds of funds are increasing the liquidity and smoothing the trades.
- During the past few days, in different events, the chief of central bank of Iran, Seif, emphasized the central bank’s plan for the banking interest rates. However, he asked the banks to reintegrate the rates first by themselves before any action taken place by the central bank. The Melli Bank’s CEO also said that the deposit interest rate could be defined at 20%level, if the inflation rate would be announced at 15%. .it is clear that the interest rate will definitely decrease next year but it’s unlikely to become less than 18%.
- The refinery companies released their 9 and 11 month production and sales reports. Bandar Abbas Oil Refinery Co. announced 4 percent decline in its production and 1 percent increase in its sales compared with last year during the 9 months period. Tabriz Oil refinery Co. in its 10 month report reduced the production and sales by 6 and 5 percent respectively compared with same period last year. It’s noteworthy to mention that the company’s production and sales reduction is due to an overhaul in last May and June. No specific changes in production and sale are noticeable in Lavan Oil refinery’s report. Shiraz Refinery Oil could also cover 92% of its forecasted budget in 11 months. Almost 10 months ago, based on 2014 state budget, the board of Iranian National Oil Refinery & Distribution Co. passed a bill of which the price of 5 main oil products including Petrol, Diesel Fuel, Mazut, Kerosene, Jet Fuel should be determined by their quality. Following this bill the trades of all refinery companies have halted. Not setting the prices based on quality by Ministry of Oil is announced as the reason for this halts. However the oil ministry denied this claim and announced that all the prices had been declared to the Iranian National Oil Refinery & Distribution Co. Nevertheless, in none of the released reports captioned feed or sales rates. In addition there is no news regarding the time the trades of this companies will be allowed and reopened.
- Focusing on new financial Instruments and project funds are the strong government intentions for next year. “Capital raising and financing for the oil, industrial and construction projects are the main programs of governments in capital markets for next year”, Mohammadi, the economic director of Economic & Finance Ministry said. He also added that the government is also emphasizing on increasing the commodities and their range in the Commodities and Energy exchanges for next year. Based on his statements setting tax exemption for market makers from 2016 is on the agenda.
- In the metal sector, among 19 companies only 7 predicted the rise in their return compared with current year. At the top is Kashan Amirkabir Steel Co. with 23 percent increase in sale and 108 percent increase in its net income. The company predicted to reach 905 IRR EPS in FY2015 with 111 percent improvement compared with current year. Mobarekh Steel CO. with the highest market cap in the group, forecasted 23% profit margin with 11 percent decline in its EPS compared with current year. With regard to the market cap, the second place belongs to National Iranian Copper Industries Co. , which predicted 5 percent decline in its next year return. However, National Iranian Lead & Zinc Co. which is a losing company forecasted 8 percent increase in its next year sale and decreased the total loss 137 percent compare with current year.
- The fixed income mutual funds are permitted to invest in equity or blended mutual funds, the last directive of SEO’s financial instrument affairs department indicated. From the issue date of this directive, with no special procedures, the fixed income funds can purchase the units of equity or blended mutual funds if the both fund managers are not the same legal entity. For Investing in such units all the related curricula must be met as investing in stokes.
- The impact of economic interactions in the USA and the Dollar’s rally against Euro on Iran’ markets will be most on the commodity prices. 70 percent of companies’ performances in Iran depend on the price of commodities. Euro depreciation will impact on the companies with imports from Euro region. Electronics and pharmaceutical sectors are the main importers from Euro. The companies with Euro assets will also feel the negative impact in their balance sheets. Currently the market does not pay attention to this matter. However, by continuing the depreciation of Euro, the attentions are expected to turn to this issue.
- Iran Customs released statistics report in which demonstrated UAE and China as the main importers during the past 11 months of the year ending 20 Mar 2015. Regarding the export, the most traded goods belong to Gas Condensate and petrochemical products such as Propane, Butane, and Methanol with share of 29.53 and 28.39 respectively. Based on this report, during the past 11 months the value of exports has increased by 22.05 percent, while the value of imports recorded only 12.3 percent growth during this period.
- Although due to current market recession the profit margin for the major national sectors is predicted 20 percent, this number is considered doubled in Petrochemical financial reports. The gross profit margin is forecasted 40 to 45 percent for petrochemical companies which have allocated 30 percent of market transactions. For instance, despite the reduction in global Methanol prices and decline in export earning, the Zagros Petrochemical Co. predicated 45 % for its profit margin. However, the feed rate is still a mystery in petrochemical next year budgets.
The market rallied today on a flurry of good news. Based on unofficial statements of one the SEO’s directors (Security and Exchange Organization of Iran), an ETF will be established soon which its unit holders have an option to sell 30 percent higher than initial price within one year maturity. If the NAV improves more than 30%, the units can be sold at market price. That means the fund will guarantee at least 30 percent interest for a year which is higher than deposit interest rates of all the banks. It is also mentioned that all the legal market entities can offer and underwrite these kinds of funds and the first one will be offered by the Market Development Fund. However, no more details have been officially approved by the SEO until now.