Market News

– In its latest reports, the Securities and Exchange Organization of Iran announced the new rules regarding the formation of new Iranian mutual funds. Equity funds’ cap at the time of establishment was set at IRR 5,000 bn (cUSD 119 mn); exceeding this figure requires the passage of 1 year after the fund operation. Balanced and Fixed-Income mutual funds’ cap was also set at IRR 100,000 bn (cUSD 2.38 bn), whose increase also needs permission from the High Council of Securities and Exchange. This new set of rules seeks the purpose of managing and controlling the cap limit of Iranian mutual funds active in the capital market in order to grow in line with the market growth and the capacity of monetary and financial markets.

– Official statistics released by CBI show that the point to point inflation rate for the first month of Persian new year (Mar/Apr 2018) stands at 9.2%. Among the critical components, housing – food and beverage – transportation – healthcare, inflated for 8.2%, 12.3%m 6.5 & and 9.5% respectively.

-The Monetary and Banking Research Institute announced the holding of the 6^th Iran-Europe Banking & Business Forum in Tehran over 28-29 April focusing on Business and Banking ties 2 years after JCPOA implementation. In this regard, the CEO of export development bank of Iran stressed that the required infrastructures in the banking system to prepare IFRS-based financial statements are now fully operational and all banks are able to release their financial reports for their upcoming AGMs in line with such internationally accepted standards.

In the Market

Equities raised strongly on today for the second consecutive session. The TEDPIX ended higher by 0.23%, while the IFEX grew only for +0.03%. The news on positive talks and a probable agreement between EU and US on respecting the JCPOA sent signals of hope to the market, which accompanied by signs on higher export sales in the IME triggered positive movements in share prices; the market eventually finished in the green just like the previous session.

As one of the spaces being mostly influenced by this matter, the Automotive industry witnessed a positive sentiment in the previous session, which was not held today. Saipa Azin and Motorsazan Iran Tractor, however, managed to gain more than 3%.

Tensions in the Middle East as well as lower oil reserves in the US dragged oil prices up. Except from Behran Oil (-0.54%), the entire Oil Products space finished above their flat lines, led by Esfahan Oil Refining. Tabriz Oil Refining and Pasargad Oil were the top gainers.

Following the news on the price rise in home appliances, the Machinery & Equipment space, despite their low volume, experienced growth with symbols like Agriculture Services and Industries Development, Butane Industrial group and Pars Khazar going up by more than 4%.

Returning to the market, Iran Manganese Mines, listed on the Iron Ore space, went up by 4.33% today again; other names settled with small gains. Finally, the Metals group, led by Iran Aluminum (+3.2%), went through rather balanced trades.

Source:

2018, Iranian mutual funds now capped!, Wednesday, April 25, p.1,<https://agahgroup.com>