Iran Stock Exchange suffers from low free float!
– The Securities and Exchange Organization (SEO) of Iran’s Issuers Supervision Division released the free float index of listed companies on the Tehran Stock Exchange (TSE) and Iran Fara Bourse (IFB) for the one-year period ended March 20th. Over the said period, 7 new companies entered Iran Stock Exchange, including HiWeb, Omid Investment Bank and Shafa Pharmaceutical with their free float rates standing at 6.4%, 3.58% and 0.59%; this event, however, could not exert any significant effect on the total free float index and its average remained in the 20% area. The following table shows the highest and lowest ratios among the first 10 listed companies:
– Following the previous unsuccessful attempts to introduce index futures contracts, an official from SEO Supervision division announced the inauguration of new risk hedging instruments, including the futures contracts on industries (or other selected) portfolios in the Iranian capital market in order to enable investors to take advantage of the bearish situation as well. Despite the fact that index futures contracts were in contradiction with frameworks of SEO’s Fiq Committee, the proposed instrument got the green light and is completely Sharia compliant.
In the Market
While the crude price has shed $1 to stand at $73 per barrel, other commodities’ prices have remained almost unchanged and there is the chance that the Dollar Index growth might drag them into the red eventually. Domestically speaking, the more we approach may 12, the more ambiguities and excitement takes control of the market, resulting in low volume and also negative trades, which might also extend to the next month as Ramadan month begins.
More positive and balanced trades were seen in the Metals industry led by Esfahan Steel (-0.99%). On the contrary, the Iron Ore group closed beneath their flat lines.
A rather balanced to positive sentiment dominated the Automotive industry as well. Having held its extraordinary AGM and approved its 50% capital raise plan (through investors’ paid in capital and claims due), Iran Tractor Mfg. (+16.1%) returned to the market 13% higher at IRR 4,150. Iran Automobile Spare Parts and Iran Tractor Mfg. Casting went up by 4%, too.
After 3 consecutive negative sessions, Iran Carton ticker, listed on the Paper group, caught investors’ attention, facing a buy queue right from the start through the closing bell. The company has been heard to enter into a new sales contract and its profitability is expected to grow.
Following the rumour on production reduction in Bandar Abbas Oil Refining Company, the rumour was officially rejected by a company official. A rather negative momentum dominated the Oil Products industry.
As one of the industries benefiting from foreign exchange rate unification, the Food & Beverages space settled with good gains; dairy products companies have also been heard to increase their products prices. Pak Dairies, Pegah-e Fars Dairies and Pegah-e Khorasan Dairies grew up by 4% and 3%. On the other hand, the Sugar industry, as another beneficiary, mostly ended in the red.
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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