New derivatives soon to be on the Tehran Stock Exchange!
– Following the plan to develop the depth of Iran Capital Market (Tehran Stock Exchange and Iran Fara Bourse), the IFB’s head of new financial instrument operations department told the press that two new derivatives will be ready to trade in a matter of two weeks. “Index Future contracts” and “Portfolio future contracts” will be operational from December 13 onward on both Iranian Equity Exchanges. These new instruments pursue the goal of creating internationally accepted hedging tools.
– Following the previous two successful offering of Iranian crude on Iran Energy Exchange (IRENEX), the chair of SEO has announced that the next round will be offered to buyers in less than a month and from there after the SEO has suggested NIOC to have regular offerings every other week. This offer is yet to be considered by the ministry, however, from the capital market perspective, there are no impediments in the way.
– In a study carried out by Market Summary Group, the trend of the Tehran Stock Exchange trading value has been alanyzed versus the changes of the overall index before and after US sanctions snapback. The below picture has the details:
In the Market
Equities were not able to extend their other days’ rally today and closed near their flat lines as investors got more pessimistic towards general health of the capital market. TEDPIX (-0.36%) almost remained unchanged and settled below 166K level while IFEX (+0.29%) managed to end the day in a slight green.
Major indices retreated from their best levels, reined in by an underlying sense that the other days’ positive reaction t was probably an overreaction since nothing concrete was achieved in terms of resolving the most important structural concerns of the capital market. Heavy weighted Metals (-0.32%) and Chemicals (-0.87%) sectors were in times with more supply force, however, the big institutional participants supported their trades.
Chip stocks also had a moderately lower performance today, as the basic fundamentals behind their recent jumps are in deep shades. The Auto (-0.23%) sector still is waiting for a price jump approval from the mines and industries ministry while Banking (-0.67%) tickers have their eyes on CBI for a free market FX translation rate.
Finally, Islamic Treasuries had a much better day than many participants might have expected in the face of some optimism in the stock market. The YTMs of outstanding issues are now in the range of 21% to 25% and trading volumes are high enough that made a very liquid market for these government securities.
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