Options test run soon on Iran Capital Market!
Market News
– Following the goal of making Iran Capital Market reach in trading instruments and after the successful launch of selected index futures, now the Tehran Stock Exchange is to host real put/call options on a test run and for Isfahan Oil Refinery (PNES) anytime soon. These contracts have a maturity of May/Jun 2019 and would be open to public trades from January 22, 2019. Trades could only happen via online trading platforms and with required margins in place according to TSE’s risk management requirements. Previously Iran capital market hosted embedded options which failed due to improper and incomplete implementation.
– Aiming to help the domestic production while preventing currency flight out of the country, Iranian parliament banned imports of durable goods that have domestic analogous until the end of the 6th development plan, the year 1400 (2021/22). These domestically produced goods must have acceptable quality and be manufactured sufficiently. In times of emergency, the parliament can re-evaluate the decision and act accordingly.
– SEO’s new risk management schemes will be into effect from January 31 on both Tehran Stock Exchange and Iran Fara Bourse. This is in order to lower trading and settlement risks of active brokers in line with international standards. As the first step, SEO obliged brokers to check their clients’ balance in order to be positive before they can send purchase orders. After receiving the market practitioners comments, this would happen during all the trading hours in each session. Iranian brokers have the most significant settlement risk on shoulders in absence of proper custodian schemes.
In the Market
Equities lost greatly today, boosted by fears of political tensions with EU and much lower than expected economic growth of coming years. TEDPIX (-0.33%) exchanged a green day with moderate red and returned back to the 165K level once again. IFEX (-0.3%) did exactly the same and closed below 2,000 level today.
Despite the far better than expected Q3 performance reports by major companies, the sale pressure won the whole session. The whipsaw trend of Banking (-1.82%) sector continued today as once again its FX translation rate rumour has that there won’t be a clause for that on their Q3 report. In wake of that, Mellat Bank (BMLT, -3.31%) hit hard from the news and closed with massive sale pressure.
On the flip side, Oil Products (+3.00%) sector was once again the market dominant today as global concerns of much lower crude price are somehow fading. Almost all the industry tickers were about to end the day with buy queues, however, the general feeling of the market made them close with acceptable gains only. Bandar Abbas Oil Refinery (PNBA, +3.86%) was the group’s leader today and placed 166.06 green points on the index today.
Elsewhere in heavy weighted Metals (-1.12%) sector, concerns of a slowing China, with the lowest growth estimated in 28 years, made investors pessimistic towards the future of domestic market which added up to existing worries of export difficulties and led the sector to a loss. Isfahan Mubaraka Steel (FOLD, -1.41%) changed hands for almost 15 mn shares in negative territory and retrieved from its recent jumps.
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