Market News

– In the 11^th Iran FINEX inauguration speech, the Head of the Securities & Exchange Organization (SEO) of Iran enumerated the attempts done and steps taken in Iran Capital Market during the previous year and announced the actual and efficient measures being taken to tackle issues, including the reconsideration of base volume and introduction of dynamic fluctuations domain. He stated that by reforming rules and regulations pertinent to reopening and halting of tickers, the market liquidity has improved significantly. Furthermore, referring to the 25% return of the market over this period, he also added that the volume of trades has reached from IRR 195,000 bn in 2016/17 to IRR 247,000 bn in 2017/18.

– Over a meeting with attendees, including the Minister of Economic Affairs and Finance and Minister of Industries, Mines and Trade along with the governor of the CBI, Eshaq Jahangiri, as the first VP, announced the government intends to establish a new foreign exchange system and instilling transparency into its operations. In this regard and aimed at reinforcing the forex unification attempt, the government has also set new policies that put the banking system as the main role player in the forex market.

In the Market

The CBI data shows that investment in construction has seen a rise since the previous year and experienced a positive growth in 3 consecutive seasons; in fact, while investment figures had been significantly reduced in 2015/16 and 2016/17, they entered into the 2-digit zone in the first 9 months of 2017/18. Nearly the whole Construction group finished in the green.

Spare part mfg. companies are currently faced with the 30% rise in their production costs, which has led to proposing a 19% increase in vehicles’ prices. The majority of tickers in the Automotive space settled with good gains, led by Pars Khodro and Zamyad, growing more than 3%. Iran Khodro Diesel, Mashhad Ring Mfg. and Indamin Shock Absorber all closed with buy queues.

Institutionally supported, Bandar Abbas Oil Refining managed to enter the +1% zone in the middle of the session while most other tickers in the Oil Products group ended beneath their flat line. Pasargad Oil was the top gainer going up by 1.3%.

The Metals and Iron Ore spaces shed their prices in line with global market prices as well as hit by the recent forex rate unification at IRR 42,000, although a few like National Iranian Lead and Zinc, Zangan Zinc Industry and Navard Aluminum in the former managed to go up by 3% and 2%. The Ministry of Industries, Mining and Trade announced that $36 bn worth of loans have been granted to the mining sector in the first 11 months of 2017/18, which posts an 8.3% rise compared with the year before.

Source:

2018, Iran Capital Market Keeps Moving Forward, Monday, April 16, p.1,<https://agahgroup.com>