Market News

– The integrated Iranian FX platform, aka “NIMA”, aiming to facilitate the currency trades for market participants, will be launched today afternoon, after massive controversial debates on the nation’s foreign exchange rate volatilities. Putting banks as the main market player, the new platform will promote transparency, fix the market liquidity, gather all FX needs of the nation in one convenient location and will prioritize the demand-supply side making the bed for effective state interventions in times of need. NIMA will be able to address the retail demand of the market as well (e.g. travel, medial, students, etc.). The four pillars of the market after NIMA would be goods and services importers and exporters (including the government itself), intermediaries (banks and exchange houses) and policymaker (the CBI).

– Decisive on eliminating USD from Iranian trade deals, cabinet members obliged all governmental entities and ministries to change their reporting currency from USD to EUR effective immediately. From the date of this new directive all mentioned entities shall report their statements in both USD and EUR only for two years and after that, the official reporting currency shall be just EUR.

In the Market

Stocks lost control for the fourth session in a row today and continued their disappointing bearish trend again, with shares of Chemicals (-0.64%) sector falling sharply. The TEDPIX lost 0.21% and the IFEX declined 0.39%. The ambiguities of new FX regime along with grey areas on the political side made the bed mostly for the long time-correction of major indices.

The Sugar industry continued to see positive trades, led by Shahroud Sugar. This space falls among those which will benefit from forex rate unification scheme.

After starting the session with low volume trades, the Oil Products sector began to get institutional investors’ support. Tensions rising in Saudi Arabia pushed the oil price to exceed $74.

Metals prices grew up in global markets, which paves grounds for the Metals industry to experience growth, although the ambiguities due to USD/IRR unification plus uncertainties about the JCPOA fate put the brakes on their expected growth. However, Iran Pipe & Machinery Mfg. and Zangan Zinc Industry hit their ceilings. Kimia-ye Zanjan Gostaran Mineral also returned to the market and ended 8.39% higher.

Except from Iran Manganese Mines and Damavand Industrial finishing with buy queues, the Iron Ore space settled with slim losses. According to official data, 5.7 mn tons of ore concentrates have been exported over 2017/18.

Finally, the Transportation group settled with balanced trades. Rail Pardaz-e Seir Company, as the sector leader, announced the purchase of 50 wagons, which will be delivered very soon; having touched its bottom, the ticker is expected to resume its growth after this news; the ticker was reopened 2% higher at IRR 1189.

Source:

2018, “NIMA” the Iranian FX platform finally inaugurates!, Monday, April 23, p.1,<https://agahgroup.com>