Iran Capital Market stamped record highs in trading value!
– Agah Group analysis shows that during the first 9 trading days of Mordad month (Jul-Aug 2018) the total trading volume of Iran Capital Market (all markets together) reached an astonishing figure of USD 1,136 mn (IRR 50,074,546,066,200) which herald a new wave of optimism and prosperity for the market. The below chart is showing the detail of trading volume by each market separately.
– The chief of the Iranian parliament economic committee announced for a completely new FX package to be introduced to Iran Economy as a safe haven rescuing the falling national currency value. According to Mohammad Reza Pour Ebrahimi, this package is the consequent of president Rouhani’s administration thoughts and Majlis recommendations aiming to tame the unleashed FX market of the nation. Rumours have that the new NIMA Platform rate would stand at IRR 55,000 and Metals and Petrochemical producers shall allocate 20% of their FX revenues to their development plans. They also can sell another 20% of their export sales in the FX secondary market, however, the remaining 60% shall be offered in NIMA platform at this new rate.
– CBI stats show that the producers annual average inflation has reached 13.1% for the month Tir (Jun/Jul 2018) which stands at its highest record in 40 months. Moreover, the monthly inflation of producers stood at 10% which an unprecedented event in the previous 5 years. Despite the claims of USD/IRR allocation at a subsidized rate of 42,000 to most producers, analysts believe the FX rates hikes that caused difficulties in accessing raw materials to pressure the inflation figure the most.
– The CEO of Iran Capital Market central asset management co. stated that SEO grants it principal consent with regards to the issuance of a new corporate Sukuk Ijarah for Alborzniroo fleet and Equipment Company (ANC) worth IRR 1,050 bn (USD 23.81 mn). These securities are expected to have a 5 years maturity with a coupon rate of 15%. The proceeds from this issue are to fund the purchase of 15 locomotives for the company.
In the Market
Stocks continued a four-session winning streak today for the fifth day with industrial shares leading the charge. The major averages extended strong opening gains throughout the morning, but slipped a bit in the final stretch, closing a step below their session highs. The TEDPIX added 2.29%, closed at 123,951.26 and the IFEX jumped for 2.45%.
Reports of a U.S/Iran possible meeting along with the chance of a free market FX rate for Petrochemical and Metal producers caused today rally to the capital market all-time high. Investors are now paying close attention to upcoming news from Rouhani administration and their new FX package. Today trades were also affected by halts/reopenings of tickers but in general, the sale pressure felt more than the other day.
Persian Gulf Petrochemical (PKLJ, +4.99%) of the Chemicals (+4.25%) sector hand in hand with its newcomer sister, Pars Petrochemical (PARS, +5.0%) made the day for TSE on its very beginning minutes and got left behind of trades due to a more than 20% change in 5 consecutive session. However, other big names in the industry like Parsian Oil & Gas (PASN, +4.79%) and others carried out their burden through the ending bell.
On the flip side, Iron Ores (+1.96%) got off to bad start during the first hours, yet managed to end the day higher ranging from 2-5%. Gol-e-Gohar (GOLG, +3.31%) changed hands for almost 55 mn shares and placed 167.70 positive points on the overall index. Other components of the market settled modestly above their flat line.
The situation for Metals (+1.10) sector was somehow confusing and the new directive obliging steelmakers to supply all their domestic products via Iran Mercantile Exchange made it more complex than ever. This directive is to cut the recent middlemen trades which caused a fake demand on the market to raise the prices. Isfahan Mubaraka Steel (FOLD, +0.59%) started the day on a positive note and after the bylaw sale pressures got stronger. Isfahan Steel Co. (ZOBZ, +2.09%), on the other hand, was highly demanded and its trading volume reached more than 300 mn shares.
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.
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