Market News

– The guardian council of Iran rejects the amendment of anti-money laundering act which includes FATF considerations. This body has announced the act is in contradictory with Iran’s constitution and shall be offered via Judiciary body and not the parliament.

– Aiming to directing liquidity towards Iran Stock Market in a best practice manner, the Head of the Securities and Exchange Organization of Iranannounced that the organization is focused on deepening the market through IPOs, mostly of highly profitable ones; he also mentioned their determination to push non-productive economic sectors through introducing instruments, like Sukuk Ijarah, Sukuk Murabahah and other Islamic Financial Instruments. In that manner, on Monday, July 16, 10% of Isfahan Qiam Livestock company, equal to 35 mn shares, will be offered on Iran Fara Bourse.

– Launched as the Integrated Forex Deals System following the USD/IRR unification at 42,000 by the government, NIMA Platform has seen the injection of only USD 1.5 bn (from USD 3.5 bn) of export revenues by petrochemical firms over the last 2 months; their income is also predicted to rise by 5-10% until the end of the current Persian calendar year.

– With the evaluation of the country’s monetary variables, including the interest rate as its top priorities, a CBI official mentioned attempts by the Money and Credit Council to revise the current interest rate in Iran’s banking sector to put it more in harmony with the current economic circumstances.

In the Market

Stocks eked out a rather bid lost on today’s session following a mostly bearish, range-bound day of trading on lighter-than-usual volume. The TEDPIX (-0.54%) continued its recent falling trend as ambiguities and overnight decisions vowed to grow. IEFX (+0.08%) closed the day almost near its yesterday’s flat line on 1,225.20.

Following Pars Petrochemical (PARS, +5%) Company’s IPO on Wednesday, the Chemicals (%0.37) space caught investors’ eyes; as Pars petrochemical Co. parent company, Persian Gulf Petrochemical Industries announced the recognition of IRR 4,099 bn earnings, equal to IRR 82 per share, as the result of this IPO. Having been offered in the previous week, Qadir Petrochemical ticker got halted due to its more than 20% growth over 4 consecutive sessions.

Oil prices falling, the Oil Products (-1.36%) space ended in the red. The statements by Russian and Saudi Arabian oil ministers on the continuation of oversupply to the market along with the retraction of US administration from Iran oil sale ban, there is no bright outlook for the crude price and the profitability of the sector components are shady.

The decline in global commodities prices also dragged most names of the Metals (-2.01%) sector into the red. Similar conditions were seen in the Iron Ore (-3.40%) group as well. The weaker than expected economic data from China along with the fears of an even broader trade war between world powers imposed lots of pressures on global commodities. There were some silver linings after all for the sector when IMIDRO announced that the export of finished and semi-finished steel products has seen a 10% growth in the Q1 (March-June) compared to the same period last year.

On the contrary, the Automotive (%2.25) space ended today’s session above its flat line, led by Saipa, Pars Khodro and Electric Khodro Sharq companies. The better than expected sale reports from companies IKCO along with the price jumps for automobile amid the nations were the main catalysts behind the move today.

Source:

2018, Iran rejects FATF amendments!, Saturday, July 14, p.1,<https://agahgroup.com>