Market News

– In its latest upgrade, and as the result of efforts by the government and the banking system aimed at improving Iran’s economy, the Organization for Economic Cooperation and Development (OECD) improved the county’s ranking in terms of export credit risk from 6 to 5; the last upgrade was done in June 2016 where the country’s rate was reduced from 7 to 6. Measuring the country’s risk as well as the likelihood that it lowers the volume of its external debt, this index employs 8 categories, including IMF reports on the country’s economic conditions and foreign exchange reserves. Lowering the cost of attracting foreign finance, it will also play a major part in attracting foreign investments and export credits.

– Iran financial data processing released a short list of five best performing ETF funds listed on Tehran Stock Exchange. Agah Group’s ETF, Hasty Bakhsh Agah, placed 4^th with an annual performance of 32.21%. The below table demonstrate the quarterly performance versus each fund beta coefficient.

In the Market

The rise in metals, especially zinc, prices in global markets drew attentions towards Calcimine (+4.2%) in the Metals industry; most of the remaining symbols finished beneath their flat lines. Releasing its monthly sales report for Dec2017-Jan 2018, Zangan Zinc Industries Company (-3.4%) has realized IRR60 bn, while it had made IRR 16 bn in its previous month; it has also sold IRR 40 bn, IRR 34 bn and IRR 59 bn in the Q1, H1 and Q3 periods, respectively. Earning IRR 206 bn over the past 10 months has covered 98% of its budget as well. It is worth noting that despite estimating a 12% gross profit during its FY, the company has only reached a 5% gross profit over its Q3 period. Esfahan Steel Company’s CEO (-0.9%) announced their readiness to deliver produced rails to the Railways Organization. Iran Zinc Mines Development (+3%) in the Iron Ore space also saw a rise in demand, followed by Bafq Mines (+2.63%).

The Construction industry settled with good gains with Shahed Civil & Development, Abad Gran-e Iran Welfare and Tourism as well as Tehran Construction and Renovation hitting their highs. Despite the rather negative sentiment dominating the majority of tickers, a few in the Cement space closed with buy queues, including Soufian and Shomal Cement companies.

Being halted for a while now, Hi Web company, listed on the Information and Communication space, has recognized IRR 2937 bn out of sales over a 10-month period, covering 72% of its estimates; 38% of this income has come from offering FCP services.

With Omid Investments (+4.15%) leading the Conglomerates space, Tose’e Melli Investment Group managed to go up by 1.53% as well. TMEL1 (+0.77%) is planning to divest its shares in 30 companies in early February, 8 of which will be offered on the stock market. The group holds 52.05% of Shahzand Petrochemical Company, 2.03% in Maskan Investment Company, 43.35% in Behshahr Industrial Development, 33.33% in Barez Industrial Group and 92.77% in Cement Industry Investment & Development among others. This downsizing seeks the aim of decreasing non-banking activities by Bank Melli and focusing on improving the country’s economic conditions.

Source:

2018, Iran’s Economy; now more credible!, Saturday, January 27, p.1,<https://agahgroup.com>