Market News

– Central Bank of Iran announced that due to a directive ratified by the head of powers, Iranian Banks shall sell all their equity stakes in businesses other than banking on Tehran Stock Exchange. According to this bylaw, banks shall give up their own or even their subsidiaries +50% stake to non-banking entities in a matter of 3 years and through Iranian Stock Exchanges.

– In a report published Iranian parliament research center, it was indicated that every 10% rise in USD/IRR (and in general all other FX rates) will cause a 2% jump in the nations’ inflation rate. This rising trend in Iran FX regime, hand in hand with a possible drop on 1 mn barrel per day in the country’s oil sales would lead to an economic growth of -2% for coming years.

– The central bank of Iran announced a 32% rise in bank facilities value granted to Iran housing sector during the first three months of 1397 (2018/19). The facilities figure reached IRR 98,900 bn (USD 2.5 bn) according to Bank Maska data which shows a significant growth for the said period. However, analysts believe that recent irrational jumps in housing prices have led the sector into a new full-scale recession.

In the Market

Stocks settled higher today for the third consecutive day, recording an all-time high with hopes over a free market FX rate getting stronger. TEDPIX (+2.56%) conquered the 116,000 channel with strong demand on almost all its sector. IFEX (+3.35%), on the other hand, jumped for 43.5 points and made history at above 1,300 level. The trades volume and value were off the charts and there is only developments on the administration FX policies are to blame for.

Today’s movement was most indebted to Metals (+0.00) and Chemicals (+0.00) sectors. Facts show that a free market FX rate could raise these sectors’ components profitability by up to 100%. That in mind, almost all the tickers in both sectors ended the day in green. Isfahan Mubaraka Steel (FOLD, +4.81%) was the leader today with more than 140 mn traded shares, the ticker stamped 378.61 positive points on the index solely. Next in line was the supergiant of chemicals, Persian Gulf Petrochemical (PKLJ, +4.48%) that has the title of the most expensive company in Iran which left 9 mn purchase orders in the queue as the closing bell rang.

Iron Ores (+4.77%) were also on the top 3 list of today’s winners. Literally, all of the sector’s tickers ended the day in green with Gole-e-Gohar (GOLG, +4.82%) being its leader. Since the industry has lots of export-based components, a free market USD/IRR can make huge differences on their balance sheets.

However, analysts believe that the recent advances of parallel markets have it hands on these days meteoric rise of the capital market and facing buy queues is not logically a metric of a share good performance. Investors must be cautious toward the market these days as a time-value correction for the overall index is not far-fetched.

Source:

2018, Iranian Banks sell their equity stakes on Tehran Stock Exchange!, Monday, July 30, p.1,<https://agahgroup.com>