Market News

– After the recent policy to unify the USD/IRR rate at 42,000 on Iran economy, there were massive misuses of this subsidize rate by importers. Reports show that several violations of law happened since then where importers sell their subsidized goods at USD/IRR free market rate. Now the administration is to stand against these rents and for that reason, any import order placements with official FX rate is banned until after further notice.

– Just weeks before US sanctions on Iran begin, the Central bank of India has approved a proposal from Iranian private listed Bank Pasargad to open a branch in Mumbai. The Finance Ministry has conveyed that it has no objection to allowing the Tehran-based Bank Pasargad to open its branch in India. The clearance to the Iranian bank comes amidst the US announcing sanctions and asking other countries to minimize oil purchases from Iran. The first US sanctions on Iran will start from August 6 and a second set will begin from November 4^th. (This news were originally posted here)

– In an attempt to get things calm over the Iranian gold coin derivate market, from July 17^th, the options contracts (both put and call) on said coins are going to be tradable along with futures contracts. According to Iran Mercantile Exchange notice, the strike prices range from IRR 27,000,000 (USD 624) to IRR 29,000,000 (USD 670) and the contracts will be matured at December 2018.

– Tomorrow, Pars Livestock Co. (ZPRS1) will be introduced for a 10% public offering of its share on Iran Fara Bourse. Being majorly owned (39.90%) by Bank Melli through its investment arm, the company has IRR 325 bn in the capital. The IPO date will be announced furtherly.

In the Market

Stocks ended today on a noticeably lower note as parallel market start yet another hike from the other day. TEDPIX lost 0.78% to stand at 108,072.26 while IFEX did not perform better and closed -0.45% lower. The fear of US sanctions snap back feels stronger as the due date is coming closer. Moreover, the economic decisions of policymakers are heading nowhere clear which impose more sale pressure on the capital market.

Unlike the previous trading session, the Chemicals (-0.62%) industry went through negative trades, although the newcomer Pars Petrochemical, touching its ceiling, led the industry. Qadir Petrochemical ticker returned to the market 3.3% higher at IRR 2,190.

Zarin Ma’dan Asia ticker also get reopened 7% higher. However, a rather negative sentiment dominated the Metals (-1.0%) space. South Kish Kaveh ticker reopened dropping 6%. Excluding Iran Manganese (+2.0%), the Iron Ore (-4.44%) group finished in the deep red as well; Mines and Metals Development ticker returned to the market 13% lower at IRR 2000. The trade war between economic giants has raised uncertainties in the market.

The Oil Products (-0.27%) space also ended beneath its flat lines, led by Lavan Oil Refining Company.

Binalood Agriculture and Animal Husbandry Company have so far benefited its shareholders with a 15% return; it has cast a positive sentiment over the Agriculture (-0.38%) industry. In addition, another IPO is on the way in this space.

Despite the previous green dominating the sector, the Automotive (+0.14%)industry went through sales pressure; however, Saipa managed to face a buy queue due to institutional shareholders’ support, which failed to hold through the closing bell; Motorsazan Iran Tractor and Iran Lent managed to hit their highs as well.

Finally, in the Banking (0.00%) space, Bank Hekmat-e Iranian ticker got halted; over a massive negative EPS adjustment, its IRR 48 EPS has been announced to turn into an IRR 75 loss per share.

Source:

2018, No more USD/IRR at 42,000 on Iran economy for now!, Sunday, July 15, p.1,<https://agahgroup.com>