Market News

– The Central Bank of Iran (CBI) put Iran Economy inflation at 9.9% for 12 months ended February 19^th, while it stood at 10% in the previous month. According to Agah Group previous daily news, the Statistical Center of Iran had announced this rate at 8.3%. Estimations indicate that this rate will remain in the one-digit area until the end of the current year (March 20^th), mostly due to less volatility in the forex market and the absorbing of wandering liquidity in the markets (by the CBI rescue package) for the second consecutive times in the country’s history.

– Tomorrow, a new piece of Islamic Treasury Bills will be offered to public on Iran Fara Bourse worth IRR 17,625 bn (cUSD 394.14). TB241 securities are going to be matured in 679 days and the below table show the possible scenarios for their pricing. Also the latest status of ITB market can be seen in the figure.

A Spent session!

In the Market

After trending sideways through the first hour of trading, the major averages began losing their opening gains, which was around -0.10% for TEDPIX while IFEX (0.09%) ended the day on a slim gain.

The recent block trades, the government plan to renovate the worn-out vehicle fleet plus the probable capital raise based on asset revaluation of those companies included in Article 144 of the Trade Law altogether pushed Automotive names’ prices upward in the previous session. However, tickers failed to keep that sentiment today. In fact, in this session descending atmosphere, only Mashhad Wheel Mfg., Saipa Diesel, Indamin Shock Absorber, and Iran Tractor Casting managed to experience more than 4% growth.

On the flip side, 50.03% of Iran Zinc Mines Development Company’s shares, equal to 1,207,810,294 shares will be offered in a block on March 11th at IRR 6,614 as the base price. This news dragged the ticker to hit its high. The rest of the Iron Ore space settled with slim losses.

The government determination to keep the leash on the USD price seems to drive export-oriented companies like those listed on the Chemicals group into the correction phase for a while.

Regarding the reopening of Bank Saderat ticker in the Banking space, an SEO official said that the bank needs to present its monthly report along with explanations on the loss it has made in its Q3 period; besides, the bank should also report about its taken measures for making reserves demanded by the CBI. Post Bank faced a buy queue.

Finally, among the Oil Products space tickers, Tehran Oil Refinery returned to the market after its +24% EPS adjustment at IRR 4,299 with no change. Pars Oil and Pasargad Oil were the top gainers with 4% and 2%, respectively.

Source:

2018, Iran Economy to taste 1-digit inflation once more!, Sunday, February 25, p.1,<https://agahgroup.com>