Market News

– Kish Parsian E-commerce company is to offer its shares publically on Iran Fara Bourse on Saturday, September 22, 2018. This IPO is for 10% of the company equal 40 mn shares via book building method with a price range of IRR 1,600 to 1,700. The major shareholder, Parsian Bank Data Processing Group, has committed to offering another 10% of its shares within a 6 month period from the IPO date. Each investor, whether individual or institutional, is entitled to 800 shares only.

– According to the latest CBI report, the economic growth of Iran stamped a 1.8% rise for the first quarter of the year 1397(2018/19). The figures suggest that the Gross Domestic Product (GPD) of the nation reached IRR 1,676.7K bn (USD 39.92 bn -USD/IRR 42,000) based on the fixed prices of 1390 (2011/12).

– According to IFB deputy market development, this year a total figure of IRR 90,000 bn (USD 2.14 bn) Islamic Treasury Bills with a maximum term of 3 years will be issued on Iran Fara Bourse. Up to this point, 12 issues of ITBs were offered publically on the exchange and the rest will come forward on a scheduled time frame, said Reza Gholamali Pour. The below picture demonstrates the details of debt securities volume trend during the last 4 years on Iran Debt Market:

In the Market

Equities did a U-turn today, as anticipated, and advanced mostly during the first half of the market. Despite the fact that the sale pressure added up throughout the end, major indices managed to end the day on a higher note. TEDPIX (+1.52%) jumped for 2,361.66 points reclaimed what was lost the other day and stood at 158,071.91 once again. IFEX (+2.36%), on the other hand, hiked with more power and closed at 1,837.20 stamping a new record high.

Today’s trades were deeply affected by the fact that some brokerage houses are facing their fiscal year end soon, therefore, and have to settle their credit lines with CSDI. This added the pressure on stocks as most of their sales happened in the second half of today’s session. Moreover, a new source of uncertainties raised when the customer of a changing Chemicals feed-stock prices spread amid the participants. It seems that once again investors must face with a period of mixed signals from officials until a ratified directive is out.

Utilities (+4.66%) were today’s biggest winner since the news will affect them directly and in a good way. Mobin (MOBN, +4.52%) and Fajr (BFJR, +4.99%) Petrochemicals, as the two major monopoles of steam, gas, electricity and warm water suppliers were deep in demand and closed the day with orders left in the buy queue. Other small names like Damavand Powerhouse (BDMZ, +4.72%) also changed greatly in closing.

The somehow co-dependent sectors of Cement (+2.48%) and Construction (+4.36%) outperformed today. With news on rebuilding the war-damaged Syria and their possible role in the process made the sectors interesting in the eyes of investors. It is safe to say that almost all the important names of both sectors ended the day with buy queues and full change percents in their closing.

All in all, Agah analysis shows that a massive amount of individuals cash has been injected into the market during the last 3 months which, in a way, sine is a sign of better than expected participation from the retail side, guarantees the upward trend of the market for a while. the below picture shows the cash injection trend:

Source:

2018, Kish Parsian E-commerce goes public on Iran Fara Bourse!, Monday, Sep 17, p.1,<https://agahgroup.com>