Market News
Mortgaged backed securities to lift up economy
“It sounds innocuous enough, and it is. It’s also an excellent and safe way to make money when the housing market is booming”. This is the sound of MBS’s (Mortgaged Backed Securities), a type of asset-backed security that is secured by a mortgage or collection of mortgages.
Market News
Single digit Inflation: Bumpy road ahead
CBI’s latest stats shows the mean inflation rate fell under 10% after 68 months and stamped single digits. P to P rate is also on its decade low: 6.8%. It seems the administration stayed on the promise, yet the question is to what cost.
CPI came to 240.9 in June, however the opposition insists that there is only a recession left to deal with. It is noteworthy to express that nations like Venezuela, contrary to a deep depression, are struggling with even three digit inflation.
Market News
Govt. to ask authorization on debts to settle
Rohani’s administration is to return a deleted note, the debt market missing link, from 2016/17 budget act to the senate floor as an amendment. “It would be possible to clear the current liabilities to banking sector by issuing debt securities” Said Shapour Mohammadi, Deputy Economy Minister while he anticipated an IRR 30,000 bn figure for securities to be issued this year. It is believed that the instruments will be utilized by banks in the following areas:
Market News
Amid different TSE sectors, the P/E ratio is seen growth compared with the same period prior year. 33 out of 36 industries were subjected to a substantial growth in the ratio as of May 20. Textile took a big leap and placed the first with 293.3% increase. Coal & iron ores mining are next in the line with solid 167.3% and 145.6% development in their price to earnings. Nonetheless, it has to be mentioned that the case for Medical equipment, with the sole ticker of “Kontor”, were completely different and it took a 66.5 % downturn to stamp the utmost drop of the year.
Market News
Mahan financed airplanes on IFB
Mahan Airlines Sukuks were sold on IFB today. The aviation giant decided to finance two airbuses by issuing Ijara securities with 21% nominal rate at par value of 1,000,000. The coupon payments will be quarterly and the maturity is in 4 years. The ask demand was 16 times higher than 2.1 mn issued papers and in an eye blink IRR 2,100 mn worth of securities were purchased.
“The idea of financing though capital markets is fast, easy and cheap” said Reza Namakshenas, the CEO of Mahan air.
In the Market
TSE index, TEDPIX, were down 303.62 points (-0.40%) this morning and stood on 76,387. Despite a moderate hike early session, most of the tickers remain red. There is absolutely no specific catalysts behind the fall according to the analysts. Altogether, the economic data released during the past week and the positive political news, kept the possibility of a summer hike, however the market begs to differ to this point.
The signals in Auto sector were mixed today. “Saipa” traded over 240 mn shares and closed at 1,281 IRR (+1.03%) to compensate a little for the catastrophic loss of yesterday. “Khodro on the other hand mustered moderate loss and closed at 3,594 IRR (-1.13%). Rumors behind USD 1 bn finance contract with Korea may tickled the giant’s trading trend. Other industry participants also were traded lower to prove that weakness in the sector fundamentals are only to blame for recent dizzy trend.
Banking went under a mild swing amid the old capital raising news. Analysts believes that it might be the actual catalyst to accelerate the sector’s profitability plans. Most of the trades were happened near support levels. With more than 15 mn shares traded, Mellat Bank placed the second, having the worst impact on TEDPIX. The trend was followed by Tejarat bank and the ticker closed at 1,054 IRR to stamp -18.23 point on the index.
Bandar Abbas oil refinery was the first to pull down on TSE. Although the trading volume was not high, however “Shebandar” had the worst impact on the index (-60.23 points). According to analysts, the lack of proper support from major shareholders is among reasons weaken the trades’ trend on a bear day like today. “Sehpna” on the other hand gained more than 2% and closed at 3,026 IRR to be the first with most positive impact.
It is safe to say the whole market saw below-average trading volume over the past 2 weeks and the reduced activity is bold. The trading week is going to be pretty quiet on the economic front, and only a handful of reports that cross the wires, might revive the investors’ sentiment.
DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.
To contact reporters: inter@agah.com
“Agah Brokerage firm” is the sale agent with “Ayandeh Bank” and “Sepehr Investment Bank” being the guarantor and market maker respectively.
– TEDPIX ended the first day of “Ordibehesht” trading session nearly unchanged. Lack of proper support regarding the fundamentals is there only to blame for risk-averse investors not to enter the market, hence slowing down the growth. The sale of Government’s Ijara Sukuks in an eye blink was the concrete proof of low risk investments hunger among the participants.