Market News

– Following its strategic plans in regards to developing new underlying assets in derivative contracts, the first Saffron Futures Contracts for delivery in September will be launched on Iran Mercantile Exchange since this Wednesday. Over the past months, negotiations have been held with practitioners in the agriculture space, bodies involved as well as brokerage firms in Tehran and Mashhad. Each contract size will be 100 grams of saffron as the underlying asset with daily price fluctuation range of 3%.

– In a report comparing the performance of Tehran Stock Exchange industries over the Q1 of 1397 (2018/19), Other Mines extraction (19.30%), Tiles and Ceramic (16.0%) and Sugar (13.40%) industries placed first to third among 39 market segments.

– Following the FX rate unification policy and stressing on the 5-6% annual depreciation of IRR/USD, the Central bank of Iran increased the USD/IRR rate from 42,000 to 42,050 (+0.11%) along with 11 other currencies. According to CBI’s plan, the maximum rate of USD/IRR shall be no higher than 44,500 by the year-end.

– An official in Bank Saderat, as the largest listed bank in Iran’s stock market, announced the employment of new credit instruments to facilitate reimbursement of non-current debts for active manufacturing units in the current year. Opening letters of credit, both in IRR and foreign exchange, amounting the claims and granting impunity on differed instalment payments are among considerations that Saderat bank took to ease the reimbursement for its clients.

In the Market

The major averages started the first hour of action relatively lower, picking up higher on course to finish with modest gains. TEDPIX (0.10%), indebted to mega cap steel makers, closed tow ticks higher on 95,227.47 level. IFEX on the other hand lost -0.25% and stood on 1,107 level.

The Sugar industry along with the Food & Beverages space went through positive trades, which mostly stems from the Ramadan month. Holding IRR 240 bn in capital, Lorestan Sugar raised its EPS for the FY ending 21 March 2019 from IRR 523 to IRR 631 due to decline in facilities received as well as rise in operating and net income.

Following the weak report by Saipa, the Automotive industry went under heavy sales pressure. With IRR 39,000 bn in capital, the company has made IRR 256 loss per share despite its estimated IRR 113 EPS for the FY ended 21 March; the company mentioned the reasons behind its loss, which includes non-growth in products’ prices, rise in CoGS due to rise in materials and changing sales method from cash to credit.  Over the half time, a few spare part manufacturing tickers entered the green area. Iran Radiator and Mehvarsazan Iran Khodro closed with buy queues.

Despite a rather weak start, the majority of names in the Metals group bounced back and settled with good gains; Iran Pipe & Machinery, Sepahan Industrial, Alumrad and Khorasan Steel all went up more than 4%.

Led by Dana Insurance (+4%), the Insurance group finished in the green. 17.34% block share of Alborz Insurance Company, nearly around 695 mn shares, worth IRR 755 bn, will be offered on June,18^th. Mihan Insurance and Kosar Insurance grew more than 4% as well.

Source:

2018, Iranian Saffron future contracts launch on Iran Mercantile Exchange!, Monday,May 21, p.1,<https://agahgroup.com>