Market News

– After massive impacts on Tehran Stock Exchange mostly due to the volatility of USD/IRR over recent months, a member of SEO’s high council announced three solutions on agenda in order to prevent future effects of such fluctuations. A) Establishment of FX-denominated mutual funds, B) Issuance of foreign currency denominated debt securities and C) FX-denominated hedging instruments (derivates) are among the “to do list” of Iran capital market regulator. According to the officials, SEO has now the required infrastructure to make mutual fund idea operational. Said funds are able to purchase Iranian banksLCs to exporters, Government or corporate FX denominated bonds or deposit in banks’ currency accounts. 

– Three Iranian Banks are to open branched in EU soon. According to the Iranian ambassador in Germany, Middle-East and Saman banks have already chosen Munich and Frankfurt cities to open their branches in and Sina bank is yet to decide. Moreover, trade relations have seen a rise of 12.5 percent between Iran and EU during the first two months of 2018.

– According to a new report published by the SEO, following sectors (see table below) are among best and worst performed industries in a 30 days period ended 25 April 2018:

Rock bottom even Fails to Nudge the Market Higher!

In the Market

The major averages ended today’s session much lower despite strong expectations for the market to rebound. The TEDPIX finished a tick below its previous closing (-0.5%) and the IFEX continued its powerful bearish trend lost n -0.34% and stood on 1,051.60 level.

Nothing soared since the opening bell and everything went south from the early beginning. Concerned are now raised higher with regards to political climate made the investors pessimistic towards the short-term future of the capital market.

Chemicals (-1.05%) and Metals (-0.40) sectors went through a similar experience and their blue chips led the red session from the start. Persian Gulf Petrochemical Co. (PKLJ1, -1.34%) and Isfahan Mubaraka Steel (FOLD1, -0.97%) damped the overall index for almost 140 negative points. This was while other sectors underperformed as well after ambiguities in the unified FX rate made its way to the bones. The TSE itself lost more than 4% of its M-cap in a matter of only 20 days.

All factors show that the short-term outlook for the market is shady and there are too many systematic risks to deal with.

Source:

2018, Tehran Stock Exchange to be resilient towards FX fluctuations!, Sunday, April 29, p.1,<https://agahgroup.com>