Market News

– Fixed income funds are finally having a change of heart. According to new stats released by Donya-e-Eqtesad news agency, the composition of Iranian fixed income funds investment portfolio has gone through important and noticeable changes since Feb 2017 until Mar 2018. It is now a fact that the weight of bank deposits and cash portion reduced by circa 8%. Accordingly, a rise in equity share is obvious yet the freed money split its way between debt securities and stocks. The below table demonstrates the details:

– The Privatization Organization of Iran released the list of 631 companies eligible to go public in the current year (2018/19), which posts an 87% surge compared to the previous year; out of this number, 282 cases are companies whose privatization did not go as planned. While the Principle 44 of the Constitution had set 2016/17 as the deadline for the completion of this process, the changes in the government and cabinet members postponed divestitures until November in the prior year. The stats show that out of the 337 companies in the queue to go public in 2017/18, only 55 cases materialized worth altogether IRR 25,000 bn (USD 592.5 mn).

– According to the latest statistics released by Iran Custom Organization, in the first 2 months of the current Persian calendar year, countries, including Turkey, Italy, Russia, Germany, Spain, Belgium and England have been among the main export destinations. Iran exported goods worth $292,292,518 to Turkey, which posted a 56.97% and 30.02% growth in terms of trading volume and value compared to the same period last year. Export to Italy has also registered a 249.47% and 156.56% growth in volume and value of trades over this period as well. In addition, Iran-Russia export has also experienced 49% rise both in trading value and volume.

In the Market

With oil prices rising in global markets, the Oil Products industry saw better trades, led by Esfahan Oil Refining. The Chemicals group also experienced a rise in demand for Fars Chemical Industries and Saina Hygienic Company facing buy queues.

The Automotive space went through rather positive trades with Tolid Mehvar Khodro (+4.5%) as its top gainer. The stats released by the Ministry of Industry and Mine, vehicle production in Ordibehesht (21 April- 21 May) has grown by 40%. As the result of foreign companies ending their cooperation with Iranian automakers due to the US pullout from the JCPOA, Peugeot 2008 and Sandero Stepway prices grew in the market.

The Metals industry mostly finished beneath its flat line. Esfahan’s Mobarake Steel B-grade sheets were heard to be highly demanded in the IME; the share, however, heavily weighted on the TEDPIX, dragging it down by 36 points. Esfahan Steel Co. ticker got halted; there are negotiations underway with an Indian buyer to sell 16% or 56% of the company’s shares. A similar sentiment was observed in the Iron Ore group.

Following its IPO on June 3^rd, Saman Kish E-Payment Co. in the Computer space, which has benefited its shareholders with 15% return, the company has seen changes in its shareholding structure; with Bank Saman and Saman Insurance as its major shareholders, Modiriat-e Tose’e Behsoud International Company has joined this structure after the IPO. The IT & Communication space also finished in the green.

Source:

2018, Iranian Fixed Income Funds Changed Heart!, Monday, June 11, p.1,<https://agahgroup.com>