Market News

– In an interview, the head of the Securities and Exchange Organization of Iran enumerated the reasons for the 27% growth of the Tehran Stock Exchange major index (TEDPIX) in the current year. Referring to the whole trading value (4 exchange markets) exceeding IRR 2,100,000 (cUSD 47 bn) bn, he firstly mentioned President Rouhani’s administration’s economic policies to lower interest rate on banking deposits, which also dragged bonds yield rate and therefore, financing costs for companies down as well. Another factor was companies’ profitability growth, mostly due to facilities offered by the government and global commodity prices soar. A part of this growth was due to the USD/IRR increase, which raised export-oriented companies’ income. Applying changes to the halting-reopening mechanism of the market to accelerate the whole process played another crucial role by increasing the market liquidity. To all these, the reduction in trading commission must also be noted, which will show its positive effect in the long run.

– The recent statistics released by the Central Bank of Iran proves that the 18% rise in banks’ debt to the CBI is the major driver of base money formation in the first 10 months of the current year ended January 20^th. In fact, banks’ liabilities to the CBI went up by 3.88% to stand at IRR 1,170,000 bn over December-January and is the major factor of money expansion the country.

– The Securities and Exchange Organization of Iran granted is principal consent for issuance of IRR 1,060 bn (cUSD 24 mn) worth of Sukuk Ijarah for three subsidiaries of MIDCO mineral holding. The securities will have a nominal yield of 20% per annum and a maturity of 4 years. Bank Pasargad is the guarantor of this new issues soon to be offered on Iran Fara Bourse.

In the Market

Stocks ended today with a quiet performance that left the broad-based TEDPIX a tick above its unchanged mark (+0.12%). The IFEX, on the other hand, took a substantial hit (-0.38) and stood on 1,078.10 breaking the bottoms again.

An SEO official announced the cancellation of Pardakht-e Electronic Saman Kish IPO, in the Computer space, due to some clarifications regarding the share valuation. Iran Arqam, however, managed to enter the +4% zone while the rest of the space settled with balanced trades.

Saipa CEO announced that they have had serious talks with Renault Company to find a vehicle to replace Pride. He also announced that Saipa Diesel Company divestiture is cancelled and its share in the transportation fleet renovation will by 25%. With the most names of the Automotive group ending in the red, Saipa Diesel (which faced a sell queue) and Mashhad Wheel Mfg. were the top losers losing 4.6% and 3.5%, respectively.

While the Oil Products industry again went through balanced trades, the Metals space saw higher demands with Zangan Zinc Industry and Sepanta as its top gainers going up by 4.4% and 3.3%, respectively.

Holding IRR 400 bn in the capital, Pegah-e Azerbaijan-e Qarbi (+1.4%) in the Food & Beverages space is planning to raise its capital by 50% to stand at IRR 600 bn. Pegah-e Azerbaijan-e Sharqi and Behshahr Industries Development were the winners gaining 3% and 2%, respectively.

Source:

2018, Tehran Stock Exchange; a 27% rise!, Tursday, March 13, p.1,<https://agahgroup.com>