Market News

– In a report published by France Press, Tehran Stock Exchange announced as the best performing stock exchange globally in a year to date period stamped 63% growth. This figure is only 5% below the IRR depreciation over the said period. Bombay Stock Exchange and NASDAQ composite are next in line with 16% and 9% return respectively. A large part of this super performance is due to freeing the tender cap on commodity trades of IME. Petrochemicals, Metals and Oil Products had the most effect on this meteoric rise.

– CBI stats show that the 12th administration has a difficult road ahead with regards to its operational and capital balance. During the first quarter of 1397 (2018/19) this balance reduced by more than 93% to stand at IRR -310K bn (USD -7.38 bn) contrary to the same period the previous year. The below image demonstrates the details:

– Following the unilateral retraction of the US from its nuke deal with Iran, JCPoA, a German steel manufacturer, SMS group, cancelled its USD 400 mn contract with an Iranian listed metal producer company, said the embassy of UAS in Germany. This agreement was previously made between two companies in Feb 2017.

– Central Bank of Iran published a report on the latest status of Iran FX market. Below table explains the stats as of Sep 15, 2018.

In the Market

The stock market saw negative movement today, continued a positive week on a lower note. The TEDIX settled just below its flat line, correcting for-1.52% to stand at 155,710.24 level again. IFEX (-0.76%) also finished below its flatlines in a session that could be only called as a pure correction.

Equities started the day just above yesterday’s closing levels, but relative weakness in a handful of sensitive sectors and a mixed showing from other groups kept the market from reaching new highs. The underperformance in groups like Metals (-2.29%), Chemicals (-1.88%), and Oil Products (-2.08%) was owed to a necessary correction after the other week’s super performance.

On the flip side, some sectors treaded water during early trade, thanks to gains in mid-sized sectors like Banking (+1.48%), Auto (+1.85%), and Construction (+0.15%). In addition to pressuring stocks, the news weighed on the new IME pricing schemes and helped the trades throughout the closing bell. A sudden change of heart in Mellat Bank (BMLT, +2.0%) trades surprised investors as the ticker made U-turn from -4.0% to +4.98% on its last trade.

The market received a few earning adjustment reports between yesterday’s closing bell and today’s open. Most of them were due to the EPS effects of a free market FX rate on their products sale prices. In general, analysts believe that the market still has potential to go further yet with a hint of correction on the sidebar.

Source:

2018, Tehran Stock Exchange stood tall in annual performance!, Sunday, Sep 16, p.1,<https://agahgroup.com>