Market News

– In an attempt to maintain the risks that brokerages firms take on their clients’ accounts, Iran SEO is to perform a pilot run of its newest risk management system from Oct 2nd, 2018. For the first step, there will be only authentication of clients’ accounts credit status and no preventing (rejection/confirmation of trades) measures. According to this new scheme, clients’ purchasable balance shall be calculated with regards to their dedicated credit amount and remaining cash balance at the end of the day.

– Despite the November deadline of united states, Japan crude oil imports from Iran raised for the fifth consecutive month. Japanese buyers has imported more than 3.39 mn barrels in August 2018 which is equal to 177,500 bpd. Some analysts believe that Japan is to buy the maximum possible oil from Iran before the sanctions kicking in while others think the Japanese government has reached an agreement with the US on its Iran oil purchases.

– After the successful issuance of Islamic Sukuk Securities of private corporations on Iran Fara Bourse, this time a new piece of Sukuk Ijarah is going to be published on Iran Debt Market for another private company. Iran Mobin Electronic Development Co. is to issue IRR 5,000 bn (USD 119.05 mn) worth of securities with a nominal coupon rate of 16% (to be paid semi-annually) which will be matured in October 2nd, 2022. These securities break down in 4 tranches with different market makers and tickers.

In the Market

Equities performed in a moderate manner today with some sectors starting their correction phase finally. TEDPIX (+0.19%) ended its winning strikes as a few of its heavily-weighted sectors faced with added sale pressure. The same thing happened for IFEX (+0.53%), however, considering its different components the hit was lighter.

A directive ratified by the cabinet members obliging petrochemical producers to pay for their feedstock with NIMA rate currency made investors sell their holdings of Chemicals (-3.52%) components. Persian Gulf Petrochemical (PKLJ, -6.37%) got burned the most as it had the highest fluctuations recently. Other names of the sector lost big during the first hours, however, the sale pressure got lighters during throughout the ending bell.

On the flip side, two cases of massive capital raise for two important steel producers attracted investors more into the tickers of Metals (+2.31%)industry. Isfahan Muarala Steel (FOLD, +3.44%) and Isfahan Steel Co. (ZOBZ, +4.98%) are about to raise capital from their accumulated profits and revaluation resources respectively. The better than expected greetings of the market to this news made other names of the sector to end in good green as well.

Similarly, the Oil Products (+3.59%) was in the middle of spotlights today as the rising prices of global crude seem to never end anytime before USD 100 per barrel. Important names of the industry faced with good demand pressure from the early hours yet the general condition of the market made them settle with fewer gains.

In general, as analysts had predicted, the market has a potential to experience a period of price corrections for a while and this could go on for a month or so. However, the injected fresh money along with the promising future of companies’ profitability make the conditions solid for further advances.

Source:

2018, Iran SEO performs brokerages risk management on the pilot!, Monday, Oct 01, p.1,<https://agahgroup.com>