Market News

– On the 7^th conference on Monetary Policies and Challenges Ahead Iran Banking Sector and Production held yesterday, the modernization and independence of the Iran Central Bank were deeply discussed. Resorting to examples like the operation of non-regulated financial institutions plus the divergence between the interest rate on banking deposits and the declining inflation rate to stress on the necessity of the CBI independence, lecturers raised the question whether the CBI had the required structure and authority to prevent such problems in the first place or not. The existing credit crunchalso drove banks towards the CBI for help, which itself, limited the CBI maneuvering power in adopting the right monetary policies. Experts, then, referred to the measures affecting the forex market, which were never in complete control of the CBI, that limited this body’s options to curb inflationary expectations even more. Under such circumstances, it is obvious that lowering the interest rate on banking deposits will bring about forex market fluctuation risk, which might turn into a disaster with the slightest shocks in regards with foreign countries and seasonal events affecting supply/demand for foreign currency. Finally, the problems and challenges ahead were discussed from a legal point of view and the conference ended with proposals on the required changes to facilitate reforms providing grounds for implementation of such plans.

– The Central Bank of Iran put the average PPI inflation for the 12 months ended Bahman month (Feb 19) at 10.2% in comparison with the similar period last year. In addition, an 11.9% YoY rise was also registered in regards to the period prior year.

– Iran’s non-oil export rose by 5% over the 11-months period of the current Persian calendar year to exceed $41 bn, compared with the corresponding period last year.

– Listed on Market B of Iran Fara Bourse with IRR 900 bn in capital, Iran Mercantile Exchange Company is planning to raise its capital by 50% based on its retained earnings and reserves.

In the Market

Stocks rallied with slim gains on today’s morning, however, through the ending bell finished nearly at their flat lines. The Dow Jones Industrial Average climbed almost 0.00% (+2.35 pinots) to stand on 98,100.84, while the IFEX declined for -0.21%.

After a weak start, the higher demands for Saipa Diesel and Zamyad pushed other names in the Automotive space upwards. Mashhad Wheel Mfg. returned to the market at IRR 1,470, shedding 1.4%. In attempts to get a share of the global markets, Iran Khodro has exported its Dena Plus model to Senegal through the company’s joint venture company.

The majority of tickers in the Metals and Iron Ore groups went through positive trades. Influenced by China’s policies on reducing production, Esfahan’s Mobarake Steel was highly demanded; it went up more than 2%.

Nearly the entire Oil Products space ended beneath their flat lines. In its Q3, Bandar Abbas Oil Refining announced the realization of IRR 895 EPS, which posts a 119% rise compared to the same period last year; this report, however, could not exert any positive effect on the share price movements, losing nearly 2%.

Source:

2018, Iran Central Bank shall get independent!, Tuesday, February 27, p.1,<https://agahgroup.com>