Market News

– Unofficial news has that import order placements are no longer available on NIMA platform by importers in order to have their required FX dedicated to. After some recent misusage of USD/IRR at the subsidized rate of 42,000, it seems all the previous unattended orders are now open for scrutiny and new ones are banned for now until after further notices. USD/IRR has reached to more than 10,000 on streets which made the policy-maker to think harder on its FX policies.

– On their last meeting, Iranian heads of powers have decided on new incentives to lure private investors into financing incomplete projects left unattended due to lack of money supply in order to maintain the liquidity flow to production:

• Offering state-owned supergiants to the public and private sector by bringing them on Tehran Stock Exchange trading boards (IPO);
• Allowing the incomplete projects to change prospectus in order to be more attractive in the investors’ eyes; and
• Granting incomplete projects, a 10-year tax exemption after inauguration and being operational.

– The scorecard of Iran foreign businesses shows that during the first 4 months of 1397 (2018/19) the nation’s trade balance stood strongly positive at USD +271 mn and non-oil exports raised by 14.69%. Also, during the said period, the value of imported goods reduced by 4.05% to USD 15.18 bn.

– From the first time since 1987, the ratio of money supply (liquidity) to GDP reached more than 100% on Iran economy. With its meteoric rise over the recent 4 years, the ration hiked from circa 60% to +100% at the end 1396 (2017/18) Persian calendar year. Analysts believe that this unleashed money supply unless managed in a legit way, will burn all markets no matter what and not for good.

In the Market

Stocks started today strongly on a positive note as speculations raised for a free market rate USD/IRR for Petrochemical and Metal producers. TEDPIXjumped for 1.76% to stand firmly on 113,852.25. The overall index touched the 114,000 level for a short window, however, added sale pressure of mid-session did not let it rest there. IFEX hiked 19.14% as well and closed the day at 1,294.44. Both markets had more than expected trading value and volume.

Today’s stormy start began by steelmakers of the Metal (+3.55%) industry. Isfahan Mubaraka Steel (FOLD, +4.37%) changed and for almost 140 mn shares, began with orders in buy queue, got a little carried away and managed to end the day with near 3.5 purchase orders in the queue again. National Copper industries (MSMI, +4.72%) did the same in the exact same way and recorded a 232 mn traded shares.

The mighty Petrochemical (+1.98%) sector was also highly demanded. Its newcomer, Pars petrochemical (PARS, +4.17%), was on the top list with a trade value of USD 20.58 mn. Other big names like Persian Gulf petrochemical (PKLJ, -0.4%) traded modestly today and left the room for smaller caps to grow.

Finally, Oil Products (+4.31%) surprised the market with one of its tickers reopening. Bandar Abbas Oil Refinery (PNBA, +14.78%) got back to trading board 18% higher and placed 355.58 positive points on the overall index solely, the ticker was left behind from recent hikes in the market. The global crude price is sending the industry mixed signals and tomorrow’s global trades answers a lot.

Source:

2018, No more import orders at USD/IRR 42,000 on NIMA platform!, Sunday, July 29, p.1,<https://agahgroup.com>