Market News

– In line with the FX rate unification policies, the cabinet members are to issue a new decree obliging some Iranian exporters to repatriate their FX revenues at USD/IRR 42,000. A list of goods will be targeted, mostly traditional merchandise like the Persian rug, Pistachio, Saffron and livestock intestine, and their exports shall sell their FX via NIMA platform to local participants covering their currency demands. Moreover, the governor of CBI announced that the fixed 42,000 rate can be adjusted by 5-6% max until the year-end.

– The underwriting of new parallel Salam securities worth IRR 1,000 bn (USD 23.81) was carried out today on Iran Mercantile Exchange financing the development plan of Entekhab Petrochemical Co. to produce expandable Polystyrene. The market making purchases would be at base price plus 17% annual yield and in case investors exercise their embedded put/call options prematurely, they will gain 17.5% to 18% respectively per annum.

– Below table demonstrates the latest status of Iranian treasury bills as of today. As it is obvious from the yield curve, the averge YTM of the outstanding 16 issue hovers around 22.5%.

In the Market

Equities continued their bullish trend with lower strength today drifting near their flat lines from open to close as analysts anticipate a mild correction on major indices. The TEDPIX and IFEX ended with slim gains of 0.04% and 0.24%, respectively.

On the upside, giant steel maker, Isfahan Mubaraka Steel (FOLD, +1.16) rallied all day in green after some disappointing previous performances. Generally speaking, it was a good session for a large number of industry’s tickers as most of them reached their bottom line P/E ratio.

Within the less fortunate Oil products sector (-0.09%), big names like Isfahan Oil Refinery (PNES, -1.91%), ended the day far below their flat lines while others like Bandar Abbas Oil Refinery (PNBA, +1.18%) performed better than expected. The first stamped 42.91 negative points on the overall index while the latter took it higher by 32.70.

Finally, the Auto sector was definitely the worst-performing group as almost all of its tickers ended the day in the red. After some previous irrational jumps, the fundamentally unstable sector showed its true self and faced with massive sale pressure.

Source:

2018, New directive obliges Iranian exporters to repatriate FX at 42,000!, Sunday,May 20, p.1,<https://agahgroup.com>