SEO Serious about Iran’s Capital Market Improvement
* Confirmed by the Minister of Economy and Financial Affairs, the Securities and Exchange Organization of Iran (SEO) announced the instruction for halting and re-opening tickers. According to this instruction, halted tickers will be re-opened within a 60-90-minute period; however, in case of extraordinary conditions, the halting period should not exceed 20 days most. If necessary, issuers might apply for another 10-day halting period to release information but tickers will not, for no reason, remain halted for more than total 30 days. In case companies fail to keep their promise within this 10-day period, the ticker will be reopened by the SEO and market practitioners will be informed to take the company’s failure in providing the necessary information into consideration when trading.
* According to the new directive by the Securities & Exchange Organization of Iran, fixed-income mutual funds are allowed to allocate up to 50% of their assets to bank deposits and certificates; up to September 22nd, 74% of fixed income mutual funds were invested in deposits. Considering the current total value of all fixed income mutual funds, which is IRR 1,300,000 bn, something around IRR 300,000 bn will be freed as the result of the said directive which might be reinvested in equities or fixed-income bonds. On the other hand, considering the current 22% share of Musharakah bonds in such funds, keeping their allowed 30% cap in mind, will ultimately inject only IRR 100,000 bn towards the bond market and the remained IRR 200,000 bn might play a very effective role if directed towards the stock market.
* Aimed at easing the foreign investment attraction to the country, the Tehran Chamber of Commerce, Industries, Mines and Agriculture opened an office in London.
* With 4% interest rate, exporters have been allocated with $2 bn facilities from the National Development Fund which will followed by another $564.1 mn in cheap loans for exporting companies.
* The Head of the Central Securities Depository of Iran announced the issuance of 110 new trading codes for foreign investors in the first half of the current year, which is divided into 79 institutional and 31 individual codes, bringing the total foreign codes in the market to 916.
In the Market
The growing zinc prices, hitting their 10-year high mostly due to their reserves decline and optimism towards China’s economy, along with its estimated bright future resulted in demand growth for companies like Calsimine, Zarin Ma’dan Asia and Kimia-ye Zanjan Gostaran Mineral in the Metal space and Bafq Mines and Iran Zinc Mines Development in the Iron Ore space. Other symbols also mostly settled with considerable gains.
After becoming balanced in the past two sessions and even going under sales pressure, Hi Web in the IT & Communication sector rallied today and hit its high at IRR 4,628 in the final hour.
The majority of companies listed on the Chemicals group also witnessed positive trades with Pars Carbon Black and Maroon Petrochemical as the top gainers. Leading the space today, 20.2 mn shares of Iranian Petrochemical Investment were also block traded in the retail market.
Despite the negative sentiment dominating over the Food & Beverages space, some like Pegah-e Golpayegan Dairies, Pegah-e Golestan Dairies, Pegah-e Fars Dairies and Pegah-e Azerbaijan-e Qarbi rallied in the first hour and hit their highs; milk prices have been heard to rise soon.
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