Wheat to Feed Iran Economy!
- Today, Iran Mercantile Exchange (IME), as an arm to raise Iran Economy, started offering wheat on its export ring, now that the country has reached self-sufficiency. In this regard, 20,000 tons of Durum Wheat produced in Khuzestan Province were supplied with the base price of $ 235 to be delivered on January 4th, 2017.
- The US dollar breaking the IRR 40,000 threshold has raised criticisms against the acting administration in a way that some believe that it is preventing the Central Bank of Iran from interfering in the market to control the Forex rate since it is in fact benefiting from such surge. Although the government official have stressed on the temporary nature of such rise basically due to the increase in demands around holiday times, foreign resources attribute this increase to the fears over the risks threatening Iran’s economy as soon as US president takes office. In this regard, there will be a meeting today with the minister of Economy and Financial Affairs as well as the CBI governor present in the parliament center to address the fluctuations in the currency market. In this meeting, the establishment of a currency futures market will be discussed as a way out.
- For the first time after the lifting of sanctions, Australia is to become a client for Iran’s petrochemical products mainly hexamine, according to an official in Tehran Chamber of Commerce, Industries, Mines and agriculture. He also added that there are talks underway for exporting the same products to Brazil, which seems to be in its final stages. As the results of attempts to increase the country’s non-oil exports, Iran has experienced a significant rise in exporting such materials in the post-sanctions era; officials state that over this period, 10 mn tons of petrochemical products, worth $4.3 bn have been exported, mainly to Asian countries.
- Alvand Housing Investment has realized IRR230 EPS for the FY ended 21 September 2016, registering a 15% plunge compared to the previous year. The respective company has covered 78% of its predicted budget.
- Holding IRR 39,266,675 mn in capital, Saipa Group has estimated to realize 102 IRR EPS based on its performance in the H1 period ended 21 September 2016; the company has covered 13% of this amount over this period.
In the Market
Half companies in the Automotive industry witnessed positive trades of which Iran Khodro, Pars Khodro and Saipa Azin can be named. Of those active in spare part mfg. area, Indamin Shock Absorber, Charkheshgar, Mashhad Wheel Mfg. and Nasir Machine Engineering finished in the green area. It has been heard that Negar Nasr Sahm Company, a subsidiary to Iran Khodro with 4.6% ownership, has now started its market making activity along with Samand Investment. Following the recent increase in greenback price, which is leading to a surge in raw materials prices, an official in the automotive industry as demanded more government support to this industry.
Among symbols in the Investment industry, Iranian Investment Development faced a buy queue; having Iran Khodro as its major shareholder, this company faced a buy queue in line with the positive movements in Iran Khodro.
Following the recently started trend, symbols in the Chemicals industry like Khorasan Petrochemical, Pardis Petrochemical went through positive trades. Besides, Fajr Petrochemical received its 167% capital raise permission, based on retained earnings, from the SEO.
New predictions show that oil prices will go beyond $50 to hover around $ 60 in 2017. As the result, the majority of tickers in the Oil Product space were positively traded of which Lavan Oil Refining, Shiraz Oil Refining and Iranol can be mentioned. There are negotiations underway between Iran, Brazil and India on establishing an oil refining company and a petrochemical company in a state in Brazil. Besides, India and South Korea has quadrupled importing Iran oil in the current year.
Names in the Iron Ore industry were under sell-off pressure of which Chadormalu Mining and Industrial and Mines and Metals Development can be named.
The same negative trend was largely observed in the Metals space such that most, including Sepanta, Sepahan Industrial Group, Zangan Zinc Industry and National Iranian Lead and Zinc faced sell queues. On the other hand, as the result of copper price growth, Shahid Bahonar Copper faced a buy queue. Iran Pipe and Machinery Mfg. (+4.4%) and Kimiay-e Zanjan Gostaran Mineral (+2%) ended above their flat lines as well.
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