After the nuclear framework agreement announcement the banking and automotive sectors recorded for the highest demand in today’s market. The Saderat bank share, which has dropped to 70 IRR during the last year, jumped today by 4% to 95 IRR and recorded more than 1 bn buy orders on that price. It’s noteworthy to mention that the TSE has price fluctuation limitation between -4 to +4 percent on each share. Today most of the shares witnessed huge buy orders on their highest possible price (+4%) with no sales orders in front (Buy Queue).
Iran Tire Co. increases it predicted loss for FY2014. The company in its last audited 9 months report increased its loss per share from 96 to 268 IRR. The company’s loss for the same period last year was 45 IRR. The rise in the operational costs due to auditing adjustments, failure to complete the installation of production machine and reduction in production rate are announced as the reasons for this negative modification. Despite this announcement and with regard to today’s positive atmosphere after the recent framework agreement the share faced high demand from market buyers.
Rayan Saipa Leasing increases its forecasted EPS from 276 to 282 IRR for FY2014. Covering the whole forecasted sale in 10 months and increasing the sale from 84 to 95 thousands unit in a year were the main reasons for this 2.1 positive adjustment. The company’s share was among the most demanded in today’s market. The share price reached 2332 IRR with more than 59 Million buying orders at its 4%. Only 635 thousand shares were traded.
Chinese auto dominance will be diminished soon. “With this agreement the Iran’s automotive industry will exit from the Chinese domination”, the chief secretory of automakers association said. Iran’s auto industry is one of those sectors that were hit hardly by sanctions and lost all its American and European partners.
TSE at Glance
IFB at Glance
The Tehran Stock Exchange has been in a serious rescission since 16 months ago. High risk free interest rate, anti-inflationary policies of the government, nation economic downward, dramatic fall in global oil prices and above all the international sanctions were the main reasons of this stagnation. By the recent announced framework agreement between Iran and six world powers, the market players are expected to be more willing for taking risks and lead the P/E market ratio to 6-7 level. However, by Rial appreciation against US dollar, the situation will get tighter for export business and governmental budget deficit will increase. Although even by considering the lift of sanctions there will be no changes in financial statements by end of December, the situation will be so good in banking and automotive sectors, the main sanctions targets. In leasing sector the situation will be the same. This week the market will react emotionally to this basic agreement and the buying pressure is expected to remain for the next few days. Today most of the shares locked at 4% due to no existing sellers in market.
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