Market News

– In its latest regional economic outlook and in addition to putting the country’s economic growth and Iran inflation rate at a 4% and 12.1% in the current year, the International Monetary Fund (IMF) stressed on reforming Iran’s banking system as the top priority, even more important than dealing with concerns surrounding the fate of the JCPoA; according to this report, “the effect of rapid credit growth on non-oil sector activity has weakened as non-performing loans continue to increase”. Referring to the uncertainties in Iran’s economy, Iranian decision makers have been advised to focus on stabilizing policies, in addition to regulating fiscal disciplines and implementing the forex rate unification. This body has also considered the country’s attempts to gradually reduce its budget deficit as positive.

– Assessing the infrastructures of its member, FEAS (Federation of Euro-Asian Stock Exchanges) committee placed Tehran Stock Exchange first, trading value wise, for the year 2016 with almost EUR 20 bn turnover. Also the trade value to GDP ratio stands at 5%. Iran’s capital market ranked 2^nd in terms of market cap with a total figure of USD 100 bn (both Tehran Stock Exchange and Iran Fara Bourse).

– Iranian listed companies paid more than IRR 2,855 bn (USD 67.97) in dividends over a one-year period ended April 2018. Stats show that 9 firms increased their DPS, 9 reduced and 291 had their cash dividends unchanged. The average DPS for all issuers stands at IRR 169 which is responsible for 57% of companies’ profits (losses).

In the Market

Over the past week, the Tehran Stock Exchange All-Share Index shed 1.2% mostly due to decreasing USD/IRR rate by decree to IRR 42,000, uncertainties due to the JCPOA fate as well as the credit crunch and institutional clients’ heavy sales.

The Automotive industry closed the session in the green. Model “C3”, the joint product of Saipa-e Kashan and Citroen Companies, will be offered to the market early next month; Saipa ended the day a tick above its flat line (+0.6%).

Following the CBI directive in April on forex rate unification and its upcoming amendments and in addition to Bank Melli and Bank Saman, three other banks of Bank Tejarat, Bank Parsian and Bank Mellat are now allowed to lend forex to importers, students and tourists. After a long halting period, Kosar Credit Institution ticker returned to the market at IRR 776, 16% lower. The Banking group settled with balanced trades.

The decline in global zinc prices dragged related names in the Metals and Iron Ore sectors down. Except a few hit their highs, such as Iran Aluminum and Navard Aluminum, the rest of the former group closed beneath their flat lines. With Iran Manganese Mines leading the latter, the rest finished in the red as well.

In today’s session, 4.06% of Esfahan’s Mobarake Steel Company, equal to 3,048,083,867 shares, were offered by Sadr Tamin Investment Company at IRR 2,857 as the base price. Besides, according to an official in Esfahan’s Mobarake Steel, the Sangan Concentration Unit, 5 mn ton in capacity, will be ready for exploitation in the current year.

The Oil Products industry also settled with slim losses, despite Oil Industry Investment (+3%) growth.

The latest data released by the Statistical Center of Iran showed a rise in the number of construction permits issued in Iran and Tehran over the Q3 of the previous year, ended Dec 21^st. In line with the whole market sentiment, the Construction space went through negative trades as well.

Source:

2018, Iran inflation rate backs to double-digit zone; IMF predicts!, Saturday,May 05, p.1,<https://agahgroup.com>