Market News

– The ministry of economy and financial affairs has announced that from next week on, the export FX revenues are to be offered in Tehran Stock Exchange for the importers to buy their currency needs at an agreed price after submitting their import orders. Exporters will be rewarded with the difference between the market price and their export declaration papers. Having a secondary market for the FX and stock exchange being that market will be greatly in favour of all economy participants and will remove rents from Iran’s chaotic FX market after all.

– SEO’s deputy financial institution supervision department announced that soon the online issuance/redemption of Iranian mutual funds’ units will be available for all investors. Being on the road to simplifying unnecessary procedures, this could lead to more agile and responsive participation of all the nation. The KYC processes in this scheme can be carried out by issuance/redemption receiving the party in conjunction with official notaries, banks and financial institutions. After more than a decade (11 years) from the entrance of mutual funds into Iranian capital market, there are more than 2 mn investors with assets surpass IRR 15,000 bn participating in these vehicles.

– According to a report by Reuters, with USD 112 bn FX reserves and positive trade balance, Iran will probably pass the US sanctions with no international payment crises.

In the Market

Stocks got hit pretty hard on today’ session amid escalated fears that the capital market super bullish trend might be a witch hunt after all. Analysts believe that this is just a minor hit with a hint of correction after days-long consecutive wins for the market and that the TSE and IFB are the most bubble free markets in Iran right now.

The TEDPIX  lost 1.43% but did manage to close above its 10-day moving average despite spending most of the session below the key technical level. The IFEX, meanwhile, lost 1.59% and suffered some technical damage, closing below 1,300 level.

Lots the market sectors finished today in negative territory, with USD/IRR-sensitive groups being the weakest performers. The top-weighted Metals sector (-2.5%) finished second at the bottom of the sector standings. Isfahan Mubaraka Steel (FOLD1) and National copper industries (MSMI1) Giants were particularly weak, evidenced by -2.71% and -3.71% drop in closing prices respectively. However, the fall has nothing to do with their profitability and is just a profit realization practice, analysts say.

Elsewhere, the Oil Products (-3.10%) performed poorly mostly due to a drop in global crude. Almost all of the sector’s tickers ended the day in the red. Bandar Abbas Oil Refinery (PNBA1, -3.94%) was the lead there with more than 3 mn traded shares.

In general, the trading volume and value was good enough which signs to a dynamic market. Analysts believed that tomorrow’s conditions can be determinative for the future behaviour of the capital market in coming months.

Source:

2018, USD/IRR is to price at Tehran Stock Exchange!, Tuesday, June 26, p.1,<https://agahgroup.com>