Market News

– The Central Bank put Iran inflation rate at the end of Khordad month (22 May – 21 June 2018) at 9.4% in comparison with the similar period last year. The inflation rate for the previous months stood at 9.1%. The monthly inflation for Khordad stood at 4.6% which made the annual P to P rate at 13.7%. Analysts believe that in coming months the monthly growth would be more than 1.5% that make the bed ready for two-digit inflation again.

– Following attempts to improve transparency in the country’s financial system and cutting the speculating hands, President Rouhani has ordered the Central Bank of Iran (CBI) to release details of all parties, both individual and institutional, who have received the subsidized USD currency at the official rate of IRR 42,000. Earlier, the ministry of telecommunications started the movement by revealing importers who had subsidized USD currency and sold their import goods at the free market rate.

– The Head of Planning and Budget Organization announced the rise in the country’s export value over the first quarter of the current Persian calendar year (March – June 2018) to reach $11 bn, which registers a 21% increase compared to the prior year.

– Having been established to facilitate banking transactions between Iran and Europe hosting the Central Bank of Iran and the Monetary and Banking Research centre with a few Iranian banks, the Association of Iranian Banks in Europe has accepted Bank Pasargad membership application.

In the Market

Influenced by yesterday’s fall after keeping an ascending trend in 9 consecutive sessions, which arose from factors like the probable rise in interest rate on banking deposits, decline in global prices and the All-Share Index reaching its technical resistance levels, the TEDPIX continued its fall, despite its early rise; fortunately, the sales pressure was lifted to some extent the more we approached the end of the session; it, however, eventually stood at 111,387.21, shedding 2,140 points (1-1.94%).

Following disturbances in Libya and Canada oil supply as well as US authorities banning the oil purchase from Iran from November 2018, the oil prices went up by $2 pb. The negative sentiment in the market dragged the Oil Products sector into the red.

Unlike its positive start in the early hours, the Automotive space went under sales pressure, led by Saipa; even Rena Investment (RENA1) lost its buy queue, although it managed to remain 3% higher. Besides, Tolid Mehvar Khodro, Iran Tractor Mfg. and Saipa Azin kept their buy queues. RENA1, as a subsidiary to Saipa, received its permission to raise its capital from the SEO by 33% to reach IRR 7,960 bn; 10%, equal to IRR 600 bn will be provided through shareholders’ claims and paid-in capital while the remaining 23%, i.e. IRR 1,360 will come from the retained earnings.

In line with the negative atmosphere in the market, most names in the Metals space lost their gains and hit their lows; the halted Esfahan Steel (-8.24%) ticker returned to the market at IRR 1,304, 5% lower. According to its latest report, Esfahan’s Mobarake Steel (-3.9%) has made IRR 47 bn in the first quarter of the current year, which proves a 41% rise compared to the same period last year.

Similar atmosphere dominated the Iron Ore space, although Chadormalu Mining & Industrial retraced its losses and closed nearly 2% above its flat line.

Source:

2018, Iran Inflation to be back at two-digit zone again!, Wednesday, June 27, p.1,<https://agahgroup.com>