Market News

– Stats show that the pace of money supply (cash component) growth in Iran Economy has been accelerated over the month of Mordad (Jul-Aug 2018) reached 39.7% which is the highest since 1390 (2011-12). This figure for the “near money” part was 17.5% that made the total number for money supply around 20%. Considering the fast-moving nature of the “cash” component and low depth of Iranian investment markets (Capital Market, FX and Gold coins, real estate), only 1% of this cash figure, IRR 2,310,000 bn (USD  bn), can burn all markets leaving nothing but chaos in the nation’s economy. Analysts believe that unless the administration addresses the issue and stop the trend of the previous month, scope destruction could be wider this time.

– Tomorrow, 10% of Pars livestock, agriculture and industrial national company shares will be offered to the public on Iran Fara Bourse (under the ticker of ZPRS) for the first time. Each individual and institutional investors ins only entitled to 300 shares with a range of IRR 3,300 – 3,500 through book building method. Bank Melli brokerage co. will manage this IPO.

– Continuing the regular process of issuing treasury bills, Tuesday, a new issue if ITBs will be offered publically on Iran Farabourse under the ticker of TB40. This issue worth IRR 23,000 bn (USD 547.62 mn) and will be matured on 22-Jul-2020. Below table demonstrates the latest status of Iran’s Debt Market T-Bills:

In the Market

Today, the stock market experienced an age-old problem of technology in the trading core. Just 1:30 hours after the opening bell, the core crashed and put a stop to daily trades. This so-called technical issue continued for almost 2 hours and after that, trades did not get back to their regular course even. Tehran Stock Exchange core problem made the TEDPIX trading volume and value to stand at their lowest in a while. IFEX (-0.66%), which has a separate trading core, was not affected by this and continued its corrective trend again today yet with signs of a rebound in the coming session.

Big names in Iran Fara Bourse did perform better than expected today. Despite the dissapoting and negative tarde of Isfahan Steel Co. (ZOBZ, -9.62%) other fundamentally sounded tickers like Zagros Petrochemical (PZGZ, +3.24%) – the world’s 4% methanol producer – and Maroon Petrochemical (PMRZ, +2.15%) perfomed handosmle even in the bearish situation of today.

Some trades in TSE got suspended and eventually rejected due to problems of trading core. Moreover, one the IPOs of IFB, due tomorrow, cancled beacuse of this unstable situation. It is anticipated that for tomorrow’s session that the trading core defect will be still in place yet with less difficulties.

Source:

2018, The “Money supply” giant rises in Iran Economy!, Sunday, Oct 14, p.1,<https://agahgroup.com>