Market News

– Following the USD/IRR sudden jump surpassing the IRR 50,000 threshold, members of Iranian parliament criticized Iran Central Bank’s  performance in managing the fluctuations and started to prepare a solution to establish calmness in the market. To this end, a meeting is planned between CBI officials and the Majlis Economic Commission members; in case the meeting fails to reach an agreement, the parliament commission will resort to a double-urgency motion to restore stability in the forex market later on. Nevertheless, the minister of economic affairs and finance has assured that such volatility is temporary and economic conditions will get back to normal soon.

– Iran Customs Administration announced that the country’s non-oil export has reached USD 47.0 bn in 2016/17, posting a 6.5% increase compared to the previous year. Likewise, the export from Iran’s Small to Medium-Sized Enterprises (SMEs) was announced to hit USD 2.3 bn over 2017/18 as well.

In the Market

After reaching their rock-bottom, P/E wise, stocks revived over today’s session in massive volumes. Both TEDPIX and IFEX ended the day in deep green each hiked +0.81% and +1.01% respectively.

The rise in USD/IRR rate positively affected those export-oriented names in the Chemicals space, including Zagros Petrochemical and Shazand Petrochemical, leaving them with buy queues. This matter also affected Oil Products names like Sepahan Oil and Esfahan Oil Refining.

Metals and Iron Ore symbols mostly ended above their flat lines, with those exchange rate based hitting their highs. Khuzestan Steel in the former returned to the market 5% higher at IRR 5,300, having positively adjusted its EPS estimates by 9%. Metals prices, mostly zinc, has seen a decline to stand at USD 3,210, although copper prices grew to reach USD 6,783. In this regard, mining royalties to the government rose by 88% over the first 11 months of 2017/18 to stand at IRR 6.74 trillion.

On the contrary, the Automotive group went through heavy sales pressure, led by Zamyad and Saipa, shedding more than 4%.

Source:

2018, Iran Central Bank Under Criticism!, Monday, April 9, p.1,<https://agahgroup.com>