Market News

– On Monday, Oct 25, 2018, 10% of Avicenna pharmaceutical company offers publically for the first time on Iran Fara Bourse. The company has 35 mn shares and each individual and institutional investors can only place orders for 700 shares through book building method. The price range has been anticipated to be between IRR 3,000 and 3,300. This pharma producer has a development plant to go deep into coated dosage form drugs which are the baseline for anti-cancer pharmaceuticals.

– Deputy admission and issuers of Iran Fara Bourse has announced that 9 new venture capital funds (VC funds) are about to enter the Iranian alternative investment ecosystem soon. Pointing out the fact that as of now there are 5 active VC funds listed on IFB with a capitalization of IRR 1,450 bn (USD 34.52 mn – USD/IRR 42,000), he announced about the underwriting of a new fund belongs to state pension fund with a capital of IRR 100 bn (USD 2.38 mn). Moreover, there are 9 other VC funds inline for underwriting process worth IRR 3,050 bn (USD 72.62 mn) which have been granted with the SEO’s principal consent. There has been also one admission request for a VC FoF with an initial capital of between IRR 6,000 to IRR 10,000 bn which will be offered publically soon.

– Iran and Montenegro are to develop their bilateral relations in the field of capital markets. In a trip that Iranian SEO officials took to meet the counterparts of Montenegro, both parties had decided to put the previously signed MoU into effect by developing the following fields:

• Legal issues based on IOSCO frameworks;
• Establishing master-feeder mutual funds;
• Providing custodian services;
• Reciprocal Admission of ETF or ETCs on both capital markets;
• Establishing mutual project funds; and
• Issuance of mutual Certificate of deposits;

– Iran’s non-oil exports to EU destinations raised by 112.9% and 26.33% in volume and value respectively over the first half of 1397 (2018/19). Stats show that despite the US sanctions deadline closing in, the volume of exports to Croatia, England and Germany experienced a jump while figures of other countries (Denmark, Mexico, Austria and France) remained unchanged.

In the Market

Stocks experienced an unexpected plummet today, losing a good chunk of their previous gains in a volatile day of trading. TEDPIX (-3.31%) lost almost 6,000 points and an emotion-driven session while IFEX (-3.61%) hit even harder and closed below 2,000 level again.

Analysts believe despite the fact that the market needed a time-price correction, this fell was beyond logic and shows that the weight of irrational traders is still a big number. The trend of cash withdrawal by the retail investors started another rally and today the figure reached IRR -2,159 bn (USD 51.40 mn). Data show that an amount of IRR 423,970 mn (USD 10.01 mn) of inexperienced investors’ money has been nested in mutual funds which is a good news since their emotional trades only made the market worse during a couple of past sessions.

It shall be noted that the underperformance of global markets had a hand in the Tehran Stock Exchange an Iran Fara Bourse today’s fall as well. The falling crude prices, as well as metallic commodities, made the sale pressure even harder on Oil Products (-4.27%), Metals (-3.62%) and Iron Ores (-2.73%). Big names of the market stamped lots of red points on the overall index of both markets while there was no significant sign of improvement in the trades’ trend.

Source:

2018, Avicenna pharmaceutical goes public on Iran Fara Bourse!, Saturday, Oct 13, p.1,<https://agahgroup.com>