Market News

– The chair of SEO has announced that in order for Iran Capital Market to develop new instruments and gets more dept, this entity ratified the rule of law with regards to the establishment of Fund of Funds structures. Up to this point, Iranian mutual funds were allowed to invest a maximum of 5% from their AUM in other investment funds and now this new structure allows a full-scale investment in other mutual funds. The minimum establishment capital shall be IRR 500 bn (USD 11.90 mn) and the fund manager is obliged to invest at least 85% of the assets at any given time. 

– Following Iran developing FX regime and all its amendments, now the mechanism of rate determination has changed on NIMA Platform. According to this new method, the buyer (bank/exchange house) shall quote their desired purchase price and once the seller accepts a quote, transactions will happen. Moreover, CBI authorized the exchange houses to get involved in FX cash transaction which shall be considered a good step controlling the demand side accordingly.

– Agah Group analysis shows that the solid rise of Tehran Stock Exchange overall index during the past 12 months has coincided with the strong injection of fresh money from the individual investors or generally the retail side (versus the institutional and blue-chip players) which has accelerated more over the last five months (342% rise!). The cash injection (withdrawal) figure has always been a game changer when it comes to the capital market, the more the retail participate, the sharper the index can grow.

In the Market

Stocks outperformed on today session as investors rushed to the market with enthusiasm never seen before. TEDPIX hiked for 1.87% to break its all-time ceiling and stand at +142K level. IFEX (+1.72%) surprised the market participants as well and stamped a stunning rise of  27.71 points. Today’s super bullish rally was mostly indebted to rising FX prices as well as better than expected economic outlook. Moreover, parallel markets of FX and gold coins reached their top for now which diverts the attention to the capital market more than ever.

The supergiant Chemical (+2.48%) sector led most of the market today despite its early morning falls. Persian Gulf Petrochemical (PKLJ, +1.67%) did a backflip ad turned all the pages towards the ending with +15 mn traded shares. Its mid-sized sister, Pars Petrochemical (PARS, +2.88%) did even better and ended the day with orders left in the buy queue. Almost other names of the sector closed with good demand power today.

Thanks to the global rising of oil prices, Oil Products (+2.66%) performed way better than expected today. Despite the fact that most of the sector’s tickers got halted by mid-session due to more than 20% consecutive jump in 5 days, the sector leader, Bandar Abbas Oil Refinery (PNBA, +4.73%)closed the day with 4 mn orders left in the buy queue. Literally, all the names closed in deep green by the closing bell.

In general, the pump of fresh money into both Tehran Stock Exchange and Iran Fara Bourse hand in hand with USD/IRR around 12,000 level made these market more attractive than even in investors’ eyes and unless something out of order happens by officials, the bullish trend could last for a while, with slower pace though.

Source:

2018, Fund of Funds soon to be on Iran Capital Market!, Sunday, Sep 9, p.1,<https://agahgroup.com>