Tehran Stock Exchange to Rise in Fall!
Tehran Stock Exchange went through many ups and downs in this fall. Hovering around the 76,400-point level at the end of summer, the All-Share Index reached the 80,123-point level the other day, in the last day of autumn, posting a 4.8% return in the third season of 2016/17.
Of the news with great impact on the market, the release of H1 financial reports, the Central Bank of Iran’s obligation to take adequate reserves in their financial statements, the US presidential election, the start of option trades as well as the Securities and Exchange Organization of Iran’s efforts for more transparency, which resulted in the halting of symbols can be mentioned.
Not only does Tehran Stock Exchange experienced growth during the first month of fall, but also it witnessed a significant rise in its trading value due to the presence of more individual investors. The growth of global commodities prices added to this growth within the second month. Although the result of the US election injected a negative shock to the market in this period, the market registered a positive return in the third month, with the TEDPIX posting a new height in the current year. The market was positively affected mainly by the OPEC member countries on reducing oil production, to which the growth in US dollar price must also be added.
Despite the TEDPIX could leave the red zone at the end of fall, the low value and volume of trades in the final days of this season took experts’ eyes, the reason for which is the risks threatening the stock market which calls for stronger motives for the market to start its upward trend.
Investigating the 37 different listed sectors, it is seen that 21 industries grew while 13 groups fell during this autumn. In fact, the Iron Ore and Metals spaces registered 21.7% and 18.6 growth and the best performance while the Communication Instruments, Agriculture and Transportation sectors with (14%), (12.1%) and (12%) loss were named as the most loss-making ones within the autumn 2016/17.
In the Market
With the decline in reserves, commodities’ prices went up. Besides, technically speaking, experts believe that that the copper index has finished its correction and is to start wave 5 soon. As the result, nearly all names in the Metals group were highly demanded, led by Isfahan Steel. Tickers like Asia Zarin Mine, Iran Pipe and Machinery Mfg. as well as National Iranian Lead and Zinc also closed with buy queues.
Besides, tickers in the Iron Ore space went through positive trades such that Bafq Mines faced a buy queue following the release of its H1 report and was titled as the highest value traded share. Bama, Iran Manganese Mine and Damavand Mineral also finished with buy queues. Iran Zinc Mines Development was the only symbol which ended with a sell queue.
The rise in global oil prices also directed symbols in the Oil Products industry towards the green territory. Tehran Oil Refining was named as the highest value traded share with trades worth $0.31 mn. Besides, 5.9 mn shares of Sepahan Oil were also block traded in the retail market.
Symbols in the Automotive industry went through positive trades and some like the Right of Pars Khodro, Sharq Electric Automotive and Nirou Mohareke faced buy queues. The increase in US dollar can raise some vehicles between 5-10%.
5 Iranian banks, i.e. Banks Pasargad, Saman, Parsian, Sarmaye and Eqtesad Novin have submitted their request to the Central Bank of India to launch branches. An official in the SEO announced that the ticker of Bank Saderat, as a symbol in the Banking space, is ready to be reopened having submitted its audited financial report for the first half of 2016/17, after accepting the obligations applied by the CBI, to this organization. Bank Mellat and Bank Tejarat, however, have not yet accepted the obligations. Furthermore, being halted due to ambiguities, Bank Pasargad has announced its general meeting to be held on 4 January 2017.
Finally, the majority of companies in the Chemicals industry were warmly welcome. The increase in US dollar price will act to the benefit of petrochemical companies. As the result, Zagros Petrochemical, Kharq Petrochemical closed in the +4% zone. Furthermore, 43.78 mn share of Iranian Petrochemical Investment Group and 1.5 mn shares of Kharq Petrochemical were block traded in the retail market. Iran Carbon as well as La’abiran also finished in +4% zone.
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.
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