Central Bank of Iran Picking the Fruit!
Market News
– Following the MoU inked between the Central Bank of Iran (CBI) and the Export Insurance Agency of Russia (EXIAR) in October 2017, a finance agreement, with no limit, was signed between 4 Iranian banks, i.e. Bank Sepah, Bank Parsian, Bank Pasargad and Bank Tose’e Saderat (Export Development Bank of Iran) and the Eximbank of Russia on Tuesday in Moscow; this contract seeks the target of facilitating the receipt of banking services for construction projects from Russia.
– Following the Statistical Center of Iran announcement which put the inflation rate at 8%, the Central Bank of Iran (CBI) announced the average goods and services Consumer Price Index in the 12-month period ended Azar month (Dec 21) to grow by 10% in comparison with the similar period last year; this body had put the inflation rate for the prior month ended Nov.21st at 9.9%. Furthermore, the Statistical Center of Iran put Iran Economic Growth at 5.6% and 6% for the first half of the current year, including and excluding oil revenues.
– In line with the Minister of Oil and Gas statement on putting Azadegan oilfield, as the largest one in the country, out to tender and closing a development deal by summer 2018, the Deputy Oil Minister, Mrs. Shahdaei, announced negotiations with well-known firms for developing the said field and convincing them to choose Iranian partners and building the required equipment in the country to transfer know-how and technology into the country as well.
In the Market
The Minister of Economic Affairs and Finance announced the realization of IRR 10,000 bn out of banks’ excess assets sales within the end of the current year, which will double at May-June 2018. With several of its tickers halted awaiting the CBI permission to hold their AGMs, no special movement was recognized in the Banking space.
Nearly the entire Metals group followed a descending trend with modest losses; Iran Aluminum (ALIR1) and Iran Steel Alloy (FAIR1), however, hit their lows. Calsimine (KSIM1) has raised its EPS by 34% from IRR 701 to IRR 942, setting zinc and US dollar prices at $2,800 and IRR 38,000, respectively in its latest estimates. This resulted in Iran Zinc Mines Development (ROOI1) increasing its EPS from IRR 312 to IRR 369 as well posting 18.27% growth.
Tickers in the Construction group were warmly welcome by investors such that Azerbaijan Development Investment (TAZB1), Housing Investment (MSKN1) and Abadgaran-e Iran Tourism & welfare (ABAD1) hit their highs. This positive sentiment did not spread to the Cement space, leaving names like Lar-e Sabzevar (SBZZ1) and Kerman (SKER1) Cement companies facing sell queues in their final trades.
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