Market News

– In a bold and rather sudden announcement, Eshaq Jahangiri, the vice president of Rouhani administration, spoke of a unified USD/IRR rate of 42,000 from today on for all economy participants. Following a late night meeting, it seems that the Iranian government finally unified the FX and are to consider trades with other rates as illegal (smuggling). Eying the nation’s currency reserve, the vice president insured people that there shall be no difficulties in meeting the FX needs of society. In addition, today, the chair of CBI explained on a parliament session that the decided USD/IRR rate is not fixed and can be altered in reaction to the market supply-demand trends.

– According to the stats released by RasamFunds, a financial data processing platform, Agah Group’s ETF (Hasty Bakhsh Agah) placed first in terms of weekly return amid all mutual funds in Iran Capital Market. The fund delivered a 2.6% weekly return and has cUSD 2.1 mn asset under management. The below table demonstrate the top 5 high performing funds during the last week.

In the Market

Stocks rallied negatively through the entire today’s session, reclaiming the bulk of yesterday’s hike, but nearly gave back all of their gains in the afternoon. The TEDPIX finished with a loss of -0.38%, while the IFEX declined -2.5%.

The news on USD/IRR rate unification drove waves of pressure towards the Metals, Chemicals, and Iron Ore sectors.

In the Chemicals group, as the sector which will hit the most, Zagros Petrochemical faced a sell queue from go, followed by Shazand Petrochemical. Other names like Jam Petrochemical, Pardis Petrochemical and Khorasan Petrochemical hit their bottom as well. Kharq Petrochemical ticker was halted for an overhaul.

The Iron Ore space also saw a better sentiment the more we approached the middle of the session. Chadormalu Mining & Industrial went up by 4% in its final trade.

In the red Metals space, Esfahan Steel ticker was halted; the company announced that more than IRR 622 bn of its debts to the Privatization Organization (for purchasing Alborz-e Sharqi Coal Company and settling this company’s tax) was cleared with the Social Security Organization claims from the government.

On the other hand, the USD/IRR unification pushed nearly the whole Automotive space into the green. Saipa Diesel, Zamyad, Iran Khodro Diesel faced buy queues.

The Oil Products space was also positively affected by this news. Except from Sepahan Oil, hitting its low, other tickers went up, led by Esfahan Oil Refining and Tehran Oil Refining.

According to a letter released from the Ministry of Mines, Trade & Industry, cement companies are now to enjoy a 30% discount on maritime “bulk export” costs. While the Cement sector settled with rather balanced trades, Doroud Cement and Sharq Cement managed to close 2% higher.

Source:

2018, USD/IRR; finally unified?!, Tuesday, April 10, p.1,<https://agahgroup.com>