Stock Depository Receipts to be on Tehran Stock Exchange!
Market News
– The Fiqh (Jurisprudence) Committee of the Securities and Exchange Organization finally approved the proposed model on issuing Stock Depository Receipts on Tehran Stock Exchange after all the controversies solved. “The DRs as a fund raising solution for major shareholders and a way to increase the free float of a ticker, was under consideration for quite a while” said Reza Kiyani, the R&D director of SEO. The frame work suggests major shareholders to offer a part of equities under their ownership to retail investors whilst keeping the corporates actions power, including selective voting rights, to themselves.
– The latest stats show that the bank debts to the CBI reached to IRR 109,000 bn on Jan-Feb 2017. The figure rose near 30.1% contrary to the same period last year. The report indicated that banks had a hard time finding finances and turned to CBI acquiring resources. This trend will eventually end up in an out of control Monetary base and brings the chances for a higher than one digit inflation.
Traders Appear OK With the Recession
In the Market
A dominant recession spread to Tehran Stock Exchange and it seems market participants are good with the current situation. With all the better than expected budget forecasts and the optimistic forecasts of new Persian year it was assumed that towards the year end the market is going to lift up, yet normal (non-block) trades volume & value are begging to differ. TEDPIX (+0.02%) won thin today whilst IFEX (-0.48%) continued to widen the losses.
The global prices assigned an implied volatility to the commodity based sectors like metals and trades are cyclical every other day. After a series of red days for National Copper, today the ticker outperformed and closed at IRR 1,923 (+2.23%). Nearly all the other giants followed the trend and made a green day for the sector. The only drawbacks were for Khuzestan Steel (FKHZ1, -1.01%) and Isfahan Mubaraka Steel (FOLD1, -0.65%).
Finally, crude oil continued to command investors’ attention again on today’s session. Falling below USD 50 pb, the oil related sectors instructed with mixed signals throughout the day. Almost all the oil products giants ended the day in deep red with Lavan (PNLZ1, -3.18%) and Tabriz (PNTB1, -0.87%) losses on the last trades, being the leaders. The atmosphere over the Chemicals was the same for blue chips.
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