Market News

– Aiming at expanding its Euro-based interactions, the head of the Securities and Exchange Organization of Iran announced the consideration of launching Euro dealt Kish International Iran Stock Exchange within the next 2 months in the exchange High Council; this market is to host foreign companies, mostly from countries with less cooperation with the US, including adjacent neighbors and European trade partners as well as domestic players.

– International Monetary fund restated the economic growth of Iran at 4.1% after the withdrawal of JCPoA by the united states which was previously predicted to be at 4%. IMF set the figure for 2019 at 4.2% stressing that sanctions snapback could reduce a few hundred thousand barrels from Iran oil sales.

– After the successful ICOs of Kian and Lotus Parsian gold backed mutual funds, today a new fund, this time an ETF based on gold coins, underwriting process took place on Tehran Stock Exchange. Being exempted from tax and commission in the underwriting period, the fund is available for initial offering only 5 business day.

In the Market

Announcing its negotiations with US officials, enjoying the support of the French government as well, to get excluded from US punishment on companies working with Iran, Peugeot-Citroen Company suspended its Iran activities until further notice. This news dominated a negative sentiment over the Automotive group. Iran Khodro ticker got halted as the result of its -50% EPS adjustment, reaching from IRR 111 to IRR 55.

Following the significant rise in global market prices, the Metals industry, led by National Iranian Copper Industries, was highly demanded. Kimiay-e Zanjan Gostaran Mineral, Zangan Zinc Industries and Shahid Bahonar Copper ended today with buy queues. Unlike rather negative trades in the Iron Oresector, however, Iran Zinc Mines Development and Bafq Mines grew up by more than 4%.

With the Oil Refining space finishing beneath its flat lines, Esfahan Oil Refining ticker got halted after announcing the cancellation of its contract (on EURP project, worth IRR 90,698,011 mn) with South Korean Daelim Company.

In its latest report, the World Bank placed Iran as the fourth large oil producer in the world, accounting for 5% of the world’s oil; the country was also ranked 3^rd in terms of producing gas, providing 5.7% of the world gas. Following the US calling the Saudi Arabia to increase its oil output to replace a drop in Iran’s crude export, Iranian officials have asked the OPEC to dismiss the appeal, not letting the US dictate the OPEC policies.

The fall in supply pushed methanol prices upwards; the Chemicals group, however, went through rather balanced trades. In order to make petrochemical companies’ interested in selling their foreign exchanges to the government at the unified rate of IRR 42,000, a government official announced the offering of petrochemical feeds to such companies at IRR 38,000.

Despite the rather balanced trades in the Construction group early in the session, which were strengthened the more we approached the end of the session, the Cement space experienced a green session right from the start.

Source:

2018, Iran Stock Exchange goes international!, Saturday, June 09, p.1,<https://agahgroup.com>