Market News
IFB ranked by transparency!
All listed tickers on IFB ranked with regards to disclosure quality and proper notification over a 12 months period ended September 2nd, 2016.
Disclosure quality measured based on two factors, reliability and timeliness. Moreover, since investments companies are not ought to release EPS estimates, therefore, points on them counted regardless of the estimates.
Market News
Halted tickers announced!
TSE and IFB issuers supervisory, published a list of halted for more than 7 days tickers clearing the reasons behind. There are 21 with the absence of more than a week.
TSE list:
In the banking sector, despite the numerous follow ups, below names are still reluctant to publish their latest accounts (FY 2015/16). It is noteworthy to mention that CBI objects their financials mostly due the fact that they were not in accordance to IFRS.
Market News
Market News
Amid different TSE sectors, the P/E ratio is seen growth compared with the same period prior year. 33 out of 36 industries were subjected to a substantial growth in the ratio as of May 20. Textile took a big leap and placed the first with 293.3% increase. Coal & iron ores mining are next in the line with solid 167.3% and 145.6% development in their price to earnings. Nonetheless, it has to be mentioned that the case for Medical equipment, with the sole ticker of “Kontor”, were completely different and it took a 66.5 % downturn to stamp the utmost drop of the year.
Market News
Mahan financed airplanes on IFB
Mahan Airlines Sukuks were sold on IFB today. The aviation giant decided to finance two airbuses by issuing Ijara securities with 21% nominal rate at par value of 1,000,000. The coupon payments will be quarterly and the maturity is in 4 years. The ask demand was 16 times higher than 2.1 mn issued papers and in an eye blink IRR 2,100 mn worth of securities were purchased.
“The idea of financing though capital markets is fast, easy and cheap” said Reza Namakshenas, the CEO of Mahan air.
In the Market
TSE index, TEDPIX, were down 303.62 points (-0.40%) this morning and stood on 76,387. Despite a moderate hike early session, most of the tickers remain red. There is absolutely no specific catalysts behind the fall according to the analysts. Altogether, the economic data released during the past week and the positive political news, kept the possibility of a summer hike, however the market begs to differ to this point.
The signals in Auto sector were mixed today. “Saipa” traded over 240 mn shares and closed at 1,281 IRR (+1.03%) to compensate a little for the catastrophic loss of yesterday. “Khodro on the other hand mustered moderate loss and closed at 3,594 IRR (-1.13%). Rumors behind USD 1 bn finance contract with Korea may tickled the giant’s trading trend. Other industry participants also were traded lower to prove that weakness in the sector fundamentals are only to blame for recent dizzy trend.
Banking went under a mild swing amid the old capital raising news. Analysts believes that it might be the actual catalyst to accelerate the sector’s profitability plans. Most of the trades were happened near support levels. With more than 15 mn shares traded, Mellat Bank placed the second, having the worst impact on TEDPIX. The trend was followed by Tejarat bank and the ticker closed at 1,054 IRR to stamp -18.23 point on the index.
Bandar Abbas oil refinery was the first to pull down on TSE. Although the trading volume was not high, however “Shebandar” had the worst impact on the index (-60.23 points). According to analysts, the lack of proper support from major shareholders is among reasons weaken the trades’ trend on a bear day like today. “Sehpna” on the other hand gained more than 2% and closed at 3,026 IRR to be the first with most positive impact.
It is safe to say the whole market saw below-average trading volume over the past 2 weeks and the reduced activity is bold. The trading week is going to be pretty quiet on the economic front, and only a handful of reports that cross the wires, might revive the investors’ sentiment.
DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.
To contact reporters: inter@agah.com
Regarding capital market of Iran which saw a transformational change in its return—approximately28%– which continued about two months after implementation of JCPOA, the overall economy is, still, in transition process. This means that we will witness signs of improvement in the economy of Iran at least in the second half of Iranian fiscal year, according to economic experts. Thus, the profitability of listed companies could be positively impacted on the back of reopening in business deals with foreign firms in due time. In this vein, increase in oil prices and commodities touching presently historical floor prices, mingled with dollar index predicted to climb down in the second half of 2016–provided that inflation rate reach its targeted rate of 2% by the Federal Open Market Committee (FOMC) chaired by Janet Yellen—are the catalysts looked forward to bolstering financial gains in the capital market of Iran
Meanwhile, the entrance of the benchmark index into correction phase was not unprecedented as the growth in the market was accelerated on the hills of historic nuclear deal without ample fundamental base to support such immediate rise in the All-Share Index.
That said, the market is expecting some real driving positive news to take off. There is some anecdotal evidence that the interest rate for banking system might come down to 16%, a measure considered crucial and vital for the deepening and development of the stock market. This combined with the holding of AGMs in the next coming month for Iranian companies might lead to relative activity in the market.
All in, the market performance is recorded to be better than its prior month in the Persian month “Khordad” (21 May-20 June) and the chances are that it might exit the downward correction path in this time period.
Elsewhere, as commodities’ prices are ending their down cycle in the world markets, it is believed that the minerals and the relevant industries could experience spike in their prices. With respect to rising oil price trajectory, this will influence petrochemical and oil products segments in the capital market and, in turn, would intrigue activity in trading among market practitioners since these are among sectors taking up most weight of the market capitalization in Tehran Stock Market and act as leaders for the rest of the sectors.
Furthermore, high financing costs are another big issue with the firms in the market in the light of expensive rate of loans offered by the banking system. With the reduction of interest rates in the foreseeable future to near inflation rate, we can forecast improvement in the net profit margins of related listed companies and higher Price-Earnings ratios in the passage of time.
In today’s activity, TSE index notched up more than 312 points to 76,292. Names such as “Shebandar” rand “Shepna”, and “Kechad” with 72, 60 and 33 positive impact on the Overall Index, respectively, were the major leader in the group, “Khodro”, was among down components of Tehran Stock Exchange, pulling down the benchmark index by 34 points. “Vasapa”, gained the title of highest value of trades, with circa USD $ 3.5 mn worth of transactions.
Elsewhere, IFX, Iran Fara Bourse benchmark index, rose more than 3 points to 804. “Zob”, “Shavan” and “Sheraz” exerted the most positive effect on the. Zob stood at the top of list for the most transacted symbol with trades worth of around $11.3 mn.
Automotive: All in all most names in the space witnessed a negative session. The giant of the space, Khodro lost in gains and finished its activity in the negative territory, slumping 2% and seeing volume of 26mn shares changing hands, halting at 3479 IRR per share. “Khezamia” and Khavar were next names in the group seeing their prices paring gains. The luckiest ticker was “Khemehvar”, which was halted for its AGM, with a triumphant reopening as the name saw 20% rise in its price, finishing its victorious day at 2851 IRR per share. Next in line is “Varena” going up 2% and closing at 2428 IRR.
Metals: Most names closed their action in the positive domain. Zob led the group, with having more than 125mn of its shares being transacted. It went up 3% continuing its up trending, with registering 16% return for its shareholders. Also, today this name was block traded in the retail market and 20mn of its shares with base price of 3160 IRR per share was traded in the ZOBZ2. Foulaj was another symbol ended its session in buy queue in spite of the realities of the industry. This is mostly due to speculative trading by day traders according the managing director of Iran Alloy Steel Co.
Chemicals: They went through a positive session except for “Shesina”. “Shetooka” was the leader in this category and saw +5% rise in its price, closing at 5,110 IRR per share
Oil products: Excluding “Shespa”, other names were traded in the positive domain. “Shepna” topped the category with experiencing 5% spike in the price, ending its action with thin buy queue.
Iron Ores: the overall atmosphere in this sector was positive. “Kegol” and “Kenoor” went up in the prices, “Kenoor”experiencing slim buy queue at the end of its trading day. There was news on an agreement between Islamic Republic of Iran Railway Co. and Gol-e-Gohar Industrial and Mining Co. to construct a new rail way. This is deemed to enhance “Vama’aden” trading in the market as it is a major shareholder of mining names in the group.
DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.
To contact reporters: Inter@agah.com
The market rallied today on a flurry of good news. Based on unofficial statements of one the SEO’s directors (Security and Exchange Organization of Iran), an ETF will be established soon which its unit holders have an option to sell 30 percent higher than initial price within one year maturity. If the NAV improves more than 30%, the units can be sold at market price. That means the fund will guarantee at least 30 percent interest for a year which is higher than deposit interest rates of all the banks. It is also mentioned that all the legal market entities can offer and underwrite these kinds of funds and the first one will be offered by the Market Development Fund. However, no more details have been officially approved by the SEO until now.
