New Derivatives on Iran’s Capital Market
- As was mentioned in Agah’s previous daily report, officials in the Securities and Exchange Organization of Iran (SEO) took a new step in deepening and developing Iran’s Capital Market by introducing ‘Option” contracts. In this regard, a ceremony was held in the Central Securities Depository of Iran (CSDI), hosting the head of SEO, the chief of Tehran Stock Exchange (TSE) as well as that of Iran Fara Bourse (IFB). Stressing on the hedging role of option in the stock market such as strengthening market stability, insuring investments and more supervision over the market, Dr. Shapour Mohamadi named other plans on agenda, including Futures on stock portfolio and increasing the fluctuation range. Besides, Mr. Hasan Qalibaf referred to the start of short selling in the stock market, which will reduce fluctuations, hedge risk and result in higher return. At the end, Mr. Amir Hamouni referred to investment banking companies’ demand to have options on debt instruments and added that IFB officials are working on this item and it is supposed to be launched until the end of the current Persian calendar year.
- As the Minister of Road and Urban Development has stated, the Iran – Airbus deal on buying 100 jets will be finalized by Friday, December 23rd and its relevant details will be disclosed then.
- In line with the recent growth in global oil prices combined with the lifting of sanctions on the country, the economic growth is now back on track such that the Central Bank of Iran announced 7.4% for Iran’s GDP growth in the first half of the Persian Calendar year. In addition to the oil sector, agricultural sector also played a major part in boosting the GDP growth. Further statistics is yet to be released by this body.
In its audited report for the first half ended 21 September 2016, Tuka Rail has made IRR 118 EPS, covering 41% of its budget; this amount shows a 1% rise compared to its un-audited report.
In the Market
The recent promise to reduce oil production by OPEC and Non-OPEC members in 2017 has kept oil prices at high levels to reach $55.57. However, symbols in the Oil Products sector were negatively traded and all, but Shiraz Oil Refining (+0.24%) and Pasargad Oil (+.1%) ended above their flat lines. Iranol Oil Company’s domestic sales prices have gone up between 30-50% in the recent 2 months; besides, export prices have also increased due to oil and dollar price hike; all in all, this can result in positive trades in the next sessions. Furthermore, Tehran Oil Refining and Amir Kabir University of Tehran inked a MoU on services for treating the water of oil-polluted wells to be reused.
Most names in the Automotive industry ended beneath their flat lines. Pars Khodro and its Right, on the other hand, hit their highs. Today, Iran Khodro released a note on codal.ir on selling one of its assets; it appears that Iran Khodro intends to raise its capital; however, according to the regulations by the SEO, it is not allowed due to having retained loss; that seems to be the reason for Khodro to sell its assets, i.e. the Bank Parsian Block to compensate for this loss.
Just like the previous session, Dana Insurance and Mihan Insurance in the Insurance group were highly demanded closing with buy queues; the reason seems to be the attempts to remove the VAT in the Insurance industry. Other tickers like Kosar Insurance (+2.16%) and Iranian Reinsurance (+0.85%) also finished in the red.
Symbols in the Banking space went through balanced trades with Bank Karafarin (+1.95%) and Bank Hekmat Iranian (+0.25%) closing in the green territory. Besides, 28 mn shares of Bank Middle East were block traded in the retail market. Despite attempts on the reopening of banking tickers, the timing is not clear yet. According to a board member in Bank Saderat, 99% of depositors of Mizan dissolved organization have received their deposits. Besides, according to the CEO of Exim Bank of Indonesia, this bank is ready to start direct cooperation with Iran, in line with the joint MoU signed with Bank Tose’e Saderat.
Approaching the implementation of its block trade, more demands were seen in Rail Pardaz-e Seir Transportation (+1.14%) in the Transportation space, which pushed other listed companies to the green zone such that Petrochemical Transportation (+4.86%) and Tuka Transportation (+2.54%) along with Parsian Rail Transportation Development (+2.17%) finished above their flat lines.
Of companies listed on the Iron Ore space, the ticker of Bafq Mines was reopened; the company has increased its EPS by 92%, which is mainly due to the global price hike; this reopening, however, was followed by negative trades and even facing sell queues influenced by the negative atmosphere running the whole industry due to negative global markets; Damavand Mineral (+1.3%) was the only name in the green.
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