Market News

– The trailing-twelve-months (ttm) figure of Iran Inflation rate reached a double-digit zone, stamped a record of 11.3% and had a growth of 1.6% contrary to the previous month. The monthly inflation rate for Shahrivar (Aug-Sep 2018) was also 5.4% which is surprising enough and made economists start worrying about the future of the Iranian economy. Prices in “Food and Beverages” along with “Toboco” experienced the most rise with 36.1% and 21.70% respectively in contrast to the same period last year.

– Iranian oil minister has announced that the sales of crude oil on Iran Mercantile Exchange is now waiting for the consent of cabinet member and heads of power branches gave their green light. Due to the sensitivity of this matter, it is agreed for the pilot trades to be based on Iranian Rial and Foreign currencies with a 20-80% weight. Petty cargos of up to 40,000 barrels per day can be traded easily on said exchange.

– Vice-Chairman of Iran SEO’s fiq committee announced that upon their latest directives the issuance of Sukuk al-Wakala securities have consented and soon these new instruments will be on Iran Capital Market. Sukuk al-Wakala is a type of Islamic Sukuk securities bases on a Wakala agreement which will allow the sponsor to have a wider range of uses for the raised funds. Holding companies in need of capital for several subsidiaries’ projects are the first ones who can benefit from these securities.

In the Market

Iran Capital Market surprised everyone again today continued its recent triumphs yet with another record high and more stronger than other days. TEDPIX (+2.15) rose for more than 3,500 green points to stand at a new all-time high of 168,624.43 just inches away from 169K level. IFEX (+2.51%) also performed better than expected and stamped almost 48 positive points on the index extended its gains up to 70% this year.

Today’s super bullish trend was mostly influenced by big names of Metals (+3.20) sector. Giants like Isfahan Mubaraka Steel (FOLD, +3.96%) was the frontrunner recorded 412.87 points on the overall index. Better than expected commodity trades on IME along with uplifting estimations of the company’s earnings made a good day for the ticker. National Copper Industries (MSMI, +3.59%) was next in line in terms of good performance today and closed the day with orders left in the buy queue. It is safe to say that almost all of the sector’s shares, except some micro-caps. ended the day in massive demand.

The long-lasted winter sleep of giants in Telecommunications (+4.94%) has finally woken up and started a storm. Iran Telecommunication Company (MKBT, +4.97%) along with its mega-cap subsidiary, Iran Mobile Telecommunication Co (HMRZ, +4.92%) shook up some nerves today and faced with truly massive demand. Apparently, a rise in their tariffs along with the unreasonably bullish trend of the whole market were the catalysts behind their move today.

Finally, the sanctions sensitive sector of Auto (-0.10%) with its poor fundamental factor finally gave in its recent gains and surrendered to market conditions. Almost all of the industry’s tickers start the day with supply overcoming the demand, however, their status got better throughout the end.

Source:

2018, Iran Inflation turned the page; 2 digits again!, Monday, Sep 24, p.1,<https://agahgroup.com>