Market News

– France, Germany and England are working on a plan to establish a Special Purpose Entity (SPE), an Iran dedicated swap market, offering monetary transaction settlement services in an attempt to save JCPoA. These nations are optimistic to come up with a pragmatic solution to undermine the US imposed sanctions on Iran before November 2018. This entity os to audit and settle bilateral monetary transaction between EU and Iranian companies. For instance, when Iran sells oil to Spain and a German machinery producer is to provide plant equipment to an Iranian buyer the SPE will come into action by settling the balance. EU members suggest that this SPE establish in Luxembourg.

– Counting as one of the most affecting factors on Iran Banking sector shortcomings, the total banks’ liabilities dues to central bank has always an undeniable importance amid economic stats. Now studies show that during the one-year period ended Jul 19, 2018, the figure of banks’ debt to the CBI rose by 36.4% after an acceptable reduction on Jan 2018. The below picture demonstrates the details:

– Today a new piece of Islamic Treasury Bills was offered to the public on Iran Fara Bourse under the ticker of TB35. This issue worth IRR 24,441.47 bn (USD 581.93 mn) and will be matured on 11 Jan 2021. The offering price hovered around IRR 561,000 level which made the issue yield +35%. These days rates on Iran Debt Market got really interesting and the below image shows the average return on each type of securities:

In the Market

The stock market saw a wide movement on today’s session, starting a positive week on a very strong note. The TEDPIX (+1.97) settled high above its flat line, recorded another all-time high and closed at 158,119.22. The IFEX (+1.94%) also finished fat away its flat lines, stamped a surprising growth of 34.32 points.

Equities started the day just above yesterday’s closing levels and their super bullish trend got stronger towards the end. The main catalyst behind today’s meteoric rise was the IME pricing schemes of commodities which were at a tender with no caps, therefore, the base FX level for metallic products rose to around 78,000 level (USD/IRR). Moreover, the optimism of better than expected trades for chemical products, based on an earlier news, fueled the trades even more.

Chemicals (+4.24%) sector was the best performer of today’s rally with almost all of its tickers ended the day in green and its super giants recorded massive green points on the index. Persian Gulf Petrochemical (PKLJ, +4.80%) and its sister company, Pars Petrochemical (PARS, +4.65%)both stamped 506.99 and 262.53 positive points on the overall index. It is anticipated that with the afternoon trades of IME for tomorrow these tickers are to be in high demand again.

On the flip side, Metals (-1.95%) sector was the unlucky one today as the rumour of price meddling on IME trades spread our really quickly. Despite the fact that it came out false, however, hand in hand with a technical error on TSE trading core, trades of the sector got emotional somehow and made the industry to close beneath its flat line. Later today once the IME prices surprised everyone, it was suggested that tomorrow could be a day of victory for the sector with massive demands.

In general, better than expected news on the ending of the “Price Controls” era, made investors super into the capital market. Analysts believe that there shall be some small corrections on the way, yet the overall index has the fuel of reaching the 220K level within the year-end.

Source:

2018, EU offers an Iran dedicated swap market as the last resort saving JCPoA!, Saturday, Sep 15, p.1,<https://agahgroup.com>