Tehran Stock Exchange Placed First
* Continuing its ascending trend, the Tehran Stock Exchange (TSE) All-Share Index entered into the 92,000-point channel the other day, registering a new all-time high; positive signals from global markets, mostly metals and investors’ optimism towards oil refining companies’ positive EPS adjustment along with the recent rally in USِِِD/IRR were among the major drivers of such a growth. All in all, the TEDPIX posted a 20% return, placing Iran Capital Market first, which was followed by the Gold Coin and US dollar markets registering a 16.2% and 12.4% return, respectively; the money market has also benefited its participants with an 11% return YTD.
* In response to concerns over the recent rise in US dollar price, mostly its rally on Tuesday when it hit IRR 42,000, the governor of the Central Bank of Iran predicted the moderation of this price in the upcoming future, stressing that this price is not its real price.
* Over a meeting held on December 9th between officials from the National Development Fund of Iran (NDFI) and a delegation from the International Monetary Fund (IMF), NFDI structural and operational aspects along with its legal regulations related to resource allocation and investment process were discussed.
- Lavan Oil Refining has recognized IRR 622 EPS over the 6 month ending 22 September 2017, posting a 1,169% growth compared to the same period last year; it has covered 90% of its estimates over this period.
- While it had made IRR 34 loss per share in H1 2016, Tabriz Oil Refining has realized IRR 517 EPS in H1 2017; its performance covers 75% of its predictions for the FY ending March 2018.
- Piazer Agricultural Company has reduced its EPS for the FY ending March 2018 from IRR 539 to IRR 327 based on its H1 performance; in addition to this 39% negative adjustment, it has realized 67% of it, equal to IRR 67 in the said period.
- Shiraz Oil Refining has made IRR 1,111 EPS in the first half of 2017/18, proving an 850% rise compared to the same period last year; it has covered 92% of its estimates in this 6-month period.
- Razak Pharmaceutical is planning to raise its capital by 45% to reach IRR 593 bn; 10% is planned to be obtained from shareholders’ paid-in capital and claims while the remaining 35% will be provided using the company’s retained earnings.
In the Market
The shutdown of the North Sea’s most important oil and gas pipeline system intensified with an explosion at an oil processing facility in Austria pushed oil prices above $65 pb for the first time since 2015. With the majority of names in the Oil Products group halted, the remaining names went through positive trades.
Influenced by the positive movements in global metal prices, the majority of symbols in the Metals group settled with good gains, including Hormozgan-e Jonoub Steel (FOHZ1), Khuzestan Steel (FKHZ1), Iran Alloy Steel (FAIR1), led by Esfahan Steel (ZOBZ1).
A similar sentiment dominated the Iron Ore group, led by Mines and Metals Development (MADN1), with Bafq Mines (BAFG1) hitting its high.
Excluding Iran Tractor Forging (ATIR1, +4.4%) and Iran Khodro Investment Development (GOST1, +1.99%), nearly the entire Automotive industry went through negative trades, shedding almost 2% on average. The volume of trades was significant in today’s session.
The whole Conglomerates space, on the other hand, ended in the green with most names growing more than 3%.
Following rumors around Hi Web ticker (HWEB1), specifically when its second price rally started after its reopening, the company CEO announced that their presence in the capital market seeks the goal of being able to finally compete with the Telecommunication of Iran Organization, as the one and only rival of all FCP companies, owning 55% of the market share, relying on the financing instruments available in Iran capital market; as has been said before, this competition also lies behind the company’s merger with Pars Online. After its IPO, the raised funds (IRR 1,100 bn) were re-injected to the company, contrary to the current method in Iran where the funds provided from the IPO are mostly spent on settling the company’s outstanding debts. The upcoming 17% block trade, is to settle a major part of the deal price to Pars Online owners. The point is that if the funds needed for purchasing Pars Online would be to provide through banking facilities, it raised the cost of capital and would question the value of such a purchase. It seems that the reason for the market attention to this share lies in its major shareholder’s (i.e. its CEO) support, which has pictured a bright future ahead of the company; in fact, the ticker has benefited its shareholders with a 25% return after its reopening and faced a buy queue today as well; the symbol was halted in the final hour. An SEO official mentioned the probable effect of the base price announcement (for that block share) as the reason behind this halting, which resulted in the cancellation of today’s trades.
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: Inter@agah.com