Market News

– In a study carried out by Donya-e-Bourse which was participated by more than 30 analysts from credible financial institutions, the EPS of 57 listed tickers of Tehran Stock Exchange were analyzed. After the SEO directive to eliminate EPS projections on companies’ quarterly report, now the analysts themselves prepare such data in order for market participants to see realities better. The below table contains the projection for 8 most important sectors and their components.

– On their last night’s meeting with Deputy Minister of Industries and Mines, steelmakers reached the decision to continue the pricing of their products on Iran Mercantile Exchange based with a USD/IRR 42,000 rate but the cap limits of daily fluctuations change to 10% (previously it was 5%). Moreover, it was decided that the base pricing formula of different metal products change as following:

• Iron Beams and HRS = 1.11 × ingot price
• CRS: 1.14 × ingot price
• Metal Profiles: 1.10 × ingot price

– Iranian ETFs reached a new record high in terms of investment value by IRR 91,953 bn (USD 2.2 bn). Recent stats showed that there are now 36 ETFs active in Iran Capital Market which have different types of Fixed income, equity, commodity-backed (gold), balanced and project funds. Arman Parand Project fund placed first as the largest ETF by IRR 33,531 bn (USD 798.35 mn).

– Rumours have that military-owned Iranian Banks (Ansar, Kowsar, Samen, Hekmat and Qavamin) are to merge all with Sepah Bank in order to continue the restructuring of Iranian Banking sector. This is while these entities have piled accumulated losses which set to be partially, only IRR 200,000 bn (USD 4.76 bn), cleared with military organizations assets. Analysts believe that these banks have more than imagined losses to cover (Qavamin has solely IRR 700,000 bn (USD 16.67 bn) liabilities) and unless a proper source dedicates to the settlement of said liabilities, it will force banking sector to supply more money into the nation and adds to its never-ending problems.

In the Market

Equities advance today in a dollar-based rally which holds for a greater good chunk of the whole stock market. TEDPIX jumped again to 134,354.77recorded a 2.14% rise. IFEX, on the other hand, hiked 2.1% to stand at 1,537.47 level. Today’s rally was mostly because of a new movement started by market giants, blue chips and of course a free market rate FX rate.

After the better than expected outcome of steelmakers meeting with officials, Metals (+3.41%) sector performed surprisingly better than expected and its components pushed the overall index greatly. Isfahan Mubaraka Steel (FOLD1, +3.21%) was the rally leader again and placed 384.62 green points on TEDPIX. National Copper Industries (MSMI,+3.80%) was next in line with almost 71 mn traded shares. The sector has now its eyes on the opening of the global commodities markets and unless something disappointing happens there, it could be a dreamy week for all of its components.

Chemicals (+2.65%) was also hot today with its twin giant sisters outperformance. Persian Gulf Petrochemical (PKLJ, +2.50%) was highly demanded at first, however, the sale pressure lifted as the session approached its closing bell. Pars Petrochemical (PARS, +3.64%) had a better experience and placed 186.40 green points on the index. It is safe to say that almost all of the important tickers of the board closed the day with good gains.

In general, the market has now its required leverage to move forward and according to technical analysis of the index, it can easily touch the target of the 220K level. Now the policymaker shall decide on whether to let the market reach its potentials or meddle as always and cap its earnings for another time.

Source:

2018, Earnings of 57 listed tickers on Tehran Stock Exchange analyzed!, Sunday, Aug 19, p.1,<https://agahgroup.com>