Market News

– Keeping Iran off its blacklist, the FATF extended the suspension of its countermeasures against the country for another 4 months. Referring to the remaining tasks, this body expects Iran to accelerate its reforms and complete the ratification process of the required rules and laws. 

– According to the deputy head of the Plan and Budget Organization of Iran and as the result of close cooperation between the government and the Central Bank of Iran (CBI), a part of the government debts to the private sector will be cleared through a multilateral debt swap agreement; this option is now available as the result of an article in the Budget Law for 2018/19. The anticipated figure for this scheme has been set at IRR 1,000,000 bn (USD 23.51 bn) which can make a meaningful change in private sector industries.

– In an attempt to rescue the JCPoA, the Europe Union is to finalize a rescue package to offer to Iranian government pledging its further commitment in exchange to shielding from US sanctions and enjoying from sanctions release in bilateral relations. The said package is ready according to the High Representative of the European Union for Foreign Affairs and Security Policy and will be presented to Iranian officials in 2 days.

– Following the recent supports of Iran Capital Market by all state persons and policymakers, the biggest ethane recovery petrochemical company of Iran, Pars Petrochemical, got listed on Tehran Stock Exchange as the 522^nd listed ticker. Recently all cabinet members pledged their support to stock market and are ready to list profitable Iranian mega firms for IPO.

In the Market

Despite a rather positive start, the more we approached the final hour, the more sales pressure was felt in the market; however, the TEDPIX stood at 111,528.19, 203 points, 0.18%, higher.

With Esfahan Steel ticker returning to the market, the Metals space saw a rise in demand early in the session, although it did not last until the closing bell. The Iron Ore group finished a tick below its flat lines as well.

The Construction group was also highly demanded, although some tickers like Azerbaijan Development Investment and Tous Gostar Urban Development finished with sell queues.

Unlike the previous session, the Automotive industry went through positive trades with Iran Tractor Mfg. and Tolid Mehvar Khodro facing buy queues right from the start. In its 12-month performance report ended 21 March 2018, Iran Khodro announced the realization of IRR 54 EPS as well as the 18% jump in its interest expenses; it has also covered 98% of its latest budget.

Despite the growth in oil prices, tickers in the Oil Products space shed their prices. A rather similar sentiment was also seen in the Chemicals sector.

Source:

2018, FATF leaves another 4M for Iran to decide!, Saturday, June 30, p.1,<https://agahgroup.com>