Market News

– According to a report on Iranian mutual funds performance, the total asset under management of said funds (AUM) reached more than IRR 1,530,000 bn (USD 36.43 bn) pooled from near 2,300,000 investors. Exempting from tax on a round trip (issuance and redemption) along with giving investors the power to exit anytime with lowest possible cost are among the factors made mutual investment rather popular among people. The below table demonstrate best performing funds of Apr/May 2018.

– Based on the CBI’s latest report, 204,935 loans, worth IRR 257,000 bn (USD 6.12 bn), were granted to economic practitioners mostly as working capital over Farvardin Month (21 March/20 April), which posts a 14.9% increase in comparison with the same period last year. “Since the government has shown no interest towards raising the banks capital, reimbursement of IRR 12,000 bn (USD 2.85 bn) worth current and non-current claims would boost the lending power of banks” said the parliament economic commission speaker.

– Stressing that the foreign exchange market organization is still on the Majlis agenda, the chairman of Majlis Economic Commission added that the parliament members are providing the government with the enough time to see if their adopted measures, i.e. forex rate unification, will work or not.

In the Market

The TEDPIX ended the previous trading week with a 0.5% growth, to reduce its loss since the beginning of the year from 3% to 0.9%; lower political tensions, positive news from companies’ AGMs and financial reports, the oil price hike along with the descending trend in parallel markets, mostly forex and gold were behind that growth. At the end of today’s session, the All-Share Index stood on 95,794-point level, going up by 348 points. The IFX also reached 1110-point level, 1 point lower.

Global markets saw a fall in crude price to $76, which pushed the entire Oil Products sector into the red. European oil refining companies are looking for replacing new partners to purchase their oil after US re-imposing its sanctions on Iran. The Chemicals group also witnessed low volume trades.

On the other hand, the Iron Ore space along with the Metals group attracted investors’ attention right from the start. Hormozgan-e Jonoub Steel ticker, in the latter, returned to the market 5.7% higher. As one of the world’s largest suppliers of mining and road construction machinery, Volvo Construction Equipment has proposed to provide mining machinery worth 200 mn euro.

The Automotive space went through rather positive and low volume trades, led by Zamyad (-6.8%). PSA Automaker Group announced that it will not change its strategy in Iran despite the US withdrawal from the deal. Tolid Mehvar Khodro (+4.9%) and Mehrkam Pars (+4.2%) were the top gainers.

Source:

2018, Iranian Mutual funds performed handsomely!, Saturday, May 26, p.1,<https://agahgroup.com>