Market News

– Following the seriousness of Iran Central Bank to organized the chaotic situation of banks, the head of CBI announced that like the mechanism utilized on the FX market lowering exchange rates in Iran Economy to more reasonable and stable levels, bank deposits interest rates would be maintained in a step by step plan. As for the first stride, banks are not allowed to pay +20% interest to depositors in any way. Banks who violate the rule will be penalised effective immediately.

– The 10th IPO of this year for Iran Fara Bourse will be a micro-cap agricultural company, Isfahan mechanized agriculture Co. The company has 20 mn shares, equals 10%, to offer on IFB second market and each individual or institutional trading code is only entitled to 400 shares with a price range of IRR 3,000 to 3,150. The offering will be carried out via book building method on 12 December 2018.

– Israeli minister of justice announced that this country will be a permanent member of the Financial Action Task Force (FATF) and now has a voting right. This will make the path for Iran a bit harder as Israel will have more control about the decisions of the task force with regards to Iran membership.

– After one year from a directive banning the listed tickers to omit the EPS projection on their financial statements now the head of SEO announced that, upon the countless requests of market participants, this body is considering to take measures for some cases that an EPS projection is a dire need. It seems that the SEO is to amend the substitute performance reports of companies in a way that allow them to restate their profitability status like before.

In the Market

Equities stalled today in mostly in a session that was dominant by day traders. TEDPIX (+0.01%) raised only by a soft 24.70 green points as investors took their chances with a limited speculation on highly demanded tickers. This is while IFEX (+1.04%) performed better thanks to its mega-caps and stamped a solid 19.15 positive points on the index.

Agah analysis of retail side movements shows that during the last two sessions a good chunk of wandered liquidity in the market has been redirected to tickers of the mid-weighted Banking sector. Just the other day a figure of +IRR 190 bn of retail side money went into highly demanded shares of Mellat (BMLT, +1.07%) and Tejarat (BTEJ, +4.24%) banks as well as other smaller names. However, the sector lacks fundamentals and there is only a free market FX translation rate that could be of help for now.

On the flip side, today the fundamentally broke Auto (-2.73%) sector proved once again that no matter how much price jumps the auto producers get the deep cracks of their financial statements will no be covered easily. It is safe today that almost all the tickers that were previously highly demanded with massive buy queues faced with huge sale pressure from mostly retail investors. The flagbearer Saipa Co. (SIPA, -2.01%) started the day in green supposed to reconcile for its last session’s lost yet wind up with lack of interest and changed hands for 161 mn shares in the negative territory.