Market News

– Over the latest press conference held the other day, the head of Trade Promotion Organization of Iran delivered two important news which could massively weigh on the future of the Iranian export-import market and in general Iranian economy. The first was about granting the license to trade export customs declaration at a free market rate that can only be translated as creating an Iranian FX secondary market. The second was the fact that a new market has been established for non-oil based products in which the participants have no obligation to secure their FX need on NIMA platform at USD/IRR 42,000. 

– During the president Rouhani trip to China, a MoU has been signed between Iranian SEO and the Chinese SEC for the mutual collaboration between two organisation on an international scale. The below list are amid the agreed articles of cooperation:

• Issuance of Iranian sovereign debt securities in the Chinese market for the purpose of attracting foreign capital for Iranian firms,
• The linkage of Iran Mercantile and Energy Exchanges to four Chinese correspondents markets
• The linkage of “Center for Research, Development and Islamic Studies” and China Institute of  Finance and Capital Markets;
• The development of Islamic Finance Instruments and transfer of knowledge from Iran to China;
• Performing comparative studies and holding educational seminars;

– A performance analysis between 3 parallel Iranian markets (Stock Exchange, FX market and gold coin) for a 10 month period has been carried out recently which shows investing in Iranian gold coins, Bahar Azadi, returned its investors with an astonishing figure of 104%. Below table demonstrate the details:

Source: Boursepress.ir

In the Market

Iranian equities eked out a giant victory on today’s session as investors realized now it is the time for the capital market to move at a much higher pace. With recent hikes in Gold Coin and unofficial FX markets, the tiny share of stock exchange forced investors to take the hit. The TEDPIX raised up by 0.55% in second half of the session and IFEX hiked for 0.53% on a blessed day.

Most sectors finished today with modest gains. However, the Oil Products (-0.17%) managed to close beneath its flatline again. Almost all of the sector’s giants performed poorly mostly due to the ambiguities of future oil sales of Iran after the sanctions snapback. Bandar Abbas Oil Refinery (PNBA, -0.6%) stamped 14.82 negative points on the overall index with just shy of a million traded shares.

Despite the disappointing performance of Oil related sectors, Metals had another positive outing, pushing the TEDPIX index higher 2.13%. The better than expected IME quotes on metallic products was the main catalyst behind the late movement of the sector during the final hour. Iron Ore (+1.64%) tickers followed the trend as well and had a hand in TSE happy day.

Finally, rumours have that in coming months, Iranian transportation sector is to face a daring situation as most of its European strategic friends are to leave Iran following US threats. Hapag Lloyd Germany announced the termination one of its two shipping lines to Iran and they shall decide on the other one before November 4th (US deadline).

Source:

2018, Iranian FX secondary market is on its way!, Tuesday, June 12, p.1,<https://agahgroup.com>