Market News

– A new challenge has been placed in the way of circling US sanctions by European companies in order to have their financial transactions with Iran. Reported by FT, apparently, no EU member is willing to host the proposed Iran financial channel in fear of more US sanctions coming its way. A European senator stated, “is not like that EU members line up to be the origin of this new Iran dedicated route”. This could be a new challenge that JCPoA signatories have to face with before November 04, 2018. 

– Tehran Stock Exchange finally amends the ridiculous “tickers halt due to 20% advance” rule. Previously, listed tickers were halted because of more than 20% change in their prices over 5 consecutive sessions and companies were obliged to publish a statement declaring the reasons behind. However, since most of the time these fluctuations were mostly due to market conditions and had nothing to do with companies’ performance, now TSE officials are to halt shares only for 1 hour (the reopening would be with no auction, therefore no price limits) and their correspondent firm can issue the statement at their discretion.

– Over the first 7 months of 1397 (2018/19), 101 out of 106 licensed brokerage firms has been active in Iran Capital Market. According to SENA news agency, more than 42% of capital market electronic trades carried out by 5 brokerage houses which Agah Group placed 2nd amid with 8.54% market share. The total turnover of the market reached IRR 1,773,000 bn (USD 42.14 bn – USD/IRR 42,000) as well.

In the Market

Stocks continued their positive trend today with a stronger pace and on more solid grounds. After the publishment of some monthly performance reports, concerns of some experts around the inability of companies to continue their profitability pace has been taken away. TEDPIX (+1.44%) started the day on a moderate note and kept going towards the closing bell to stand above 183K level once again. IFEX (+1.44%) tickers traded better today, some its giant end their corrective phase and made the index jump for 26.40 positive points.

Agah analyses of tickers in the heavy-weighted Metals (+0.28%), which once was the market leader, show that despite concerns about sanctions snapback, big metal and steel producers got hit a little in production figures which remedied by a higher selling price. The below table demonstrates a comparative analysis of the sector’s components:

On the flip side, data of exports from Iran Customs Organization, show some volatile numbers in sanction-sensitive commodities which could not be covered by the jump in global prices or a higher FX conversion rate. Agah analysts prepared the following table on the most important exportable commodities:

Source:

2018, EU members refuse to host Iran financial channel in fear of US sanctions!, Monday, Oct 29, p.1,<https://agahgroup.com>