Market News

– “Prospectus of Iranian Private Equity funds has been ratified by the SEO along with an operational directive on its mechanics”, said deputy supervision of Iran securities and exchange organisation. According to Saeed Fallah Pour, these funds have the main objectives of entering the shareholding structure of private firms, amending its financial structure and giving up the company with a valid exit plan. The minimum capital is set to be no less than IRR 500 bn (USD 11.91 mn – USD/IRR 42,000) with a lifetime of maximum 7 years (the first 4 years will be considered as investing period). The minimum investment in Iranian Private Equity funds shall be no less than IRR 1,000 mn.

– An analysis of the financial statements of 18 Iranian banks, carried out by Donya-e-Eqtesad demonstrate a clear picture of money market components. These banks have been investigated thoroughly on 4 pillars: Assets, Profitability, Positive performance and Stakeholders benefits. Results are as below:

• In terms of asset assessment, Mellat bank is the largest followed by Saderat and Tejarat;
• In terms of profitability (Net profit margin) the ranking stands as Middle East Bank, Ansar Bank and Karafarin Bank;
• When it comes to positive performance, once again Middle East Banks stands first followed by Ansar and Karafarin Banks;
• And finally, data shows that Resalat Bank benefited its shareholders the most, The second and third places in this category filled by the Middle East and Iran Zamin banks respectively.

– Rumours have that by tomorrow morning the chair of CBI will announce a very important news on a brand new directive on exports/imports FX policies which favours the small to medium-sized entities whom struggled enough with the current obligation of bringing their FX revenues to NIMA platform.

In the Market

Stocks performed a good rebound today as investors put more trust on a positive capital market ahead. Rumours of a new FX directive by the CBI can have massive effects on the market trend, a thing that is needed the most; a trend, and prepare the ground for another round of bullish rally this year.

TEDPIX (+0.85%) jumped for almost 1,550 points to stand once again above the 181K band, one of the direst technical resistant levels, in a session mostly driven by small to mid-weighted sectors. IFEX (+1.29%) recoup a good chunk of its previous losses and closed at 1,986.18.

Today’s session started with a better than expected demand for tickers of Auto (+3.63%) industry. A possible rise in their products prices by the National Competition Council was the main speculations of the sector’s jump. The giant automakers are somehow certain that this price hike is inevitable considering all other parts of the economy readjustment with the new FX rates.

Elsewhere, amid the ambiguities of CBI approval and enforcement time on the banks FX translation rate, investors chose to trust the components of mid-weighted Banking (+1.22%) sector. Several possible capitals raise scenarios for the industry’s components made the tickers once again interesting on market participants’ eyes.

In general and as told before, the market needs a trend most of all for now at least until Q3 reports which positive political and macroeconomic incentives could bring the best of the said trend in the coming days.

Source:

2018, Iranian Private Equity funds basics ratified by the SEO!, Monday, Nov 12, p.1,<https://agahgroup.com>