Kian Commodities Index unveiled – targeted tracking of prices

Kian capital management launches Kian Commodities Index (KCI). KCI tracks price movements of commodities with a bespoke selection and weighting methodology designed for the capital markets of Iran.

KCI reports on a basket of commodities comprised of oil (Brent Crude), steel (CIS bullion), copper (LME), zinc (LME), urea (Fertilizerworks) and polyethylene (Platts).

The index’s underlying commodities are weighted so that they represent the weight of producers of these commodities in capital markets of Iran. The index is reported daily and rebalanced quarterly. In each rebalancing weight of commodity producing companies will be updated according to changes in their market capitalization as share of the total market.

Iran’s capital markets are heavily influenced by commodity prices due to the fact that over 70% of the market capitalization is made up of producing companies.

Ali Noorian, partner and head of the asset management department at Kian says: “domestic and international prices for commodities tend to more or less move in concert, therefore price fluctuations impact not only export but local sales of producing companies as well”.

Noorian added: “each one of many commodities produced by Iranian companies have supply, demand and production economy attributes of their own and can vary within different time periods. This complexity makes analysis and forecasting more difficult and the need for a targeted tool more prevalent”.

KCL is reported daily in .