Market News

– After the announcement of a free market FX rate by both President Rouhani himself and the new chair of CBI, today the USD/IRR was priced around 80,000 level on Iran FX secondary market. Chemical producers like Jam petrochemical Co. was among the currency suppliers with a volume of 16.5 mn AED at AED/IRR 22,000. FX destinations were mostly Dubai (Adib, NBD), Hong Kong (DBS), Germany (EIH, Melli Bank) and Russia (Mir Business Bank). Rates on black market also tumbled rapidly converging the one on NIMA platform. Prices on Bahar Azadi Gold Coins which were at their all-time highs just yesterday also has plummeted to circa IRR 30,000,000.

– After the bullish trend of Iran Capital Market over the past days, a performance report released by SENA news agency (SEO official news platform) shows that Iranian Mutual funds also did great over the said period and delivered handsome returns to their investors. Below tables are to demonstrate the details separated by the fund type:

– SEO ranked Iranian brokerage houses for the first month of 1397 second quarter and Agah Group placed the second in terms of online trades value with a 7.78% market shares. The total online market turnover hovers around IRR 50,000 bn (USD 1.13 bn) and the total market turnover (both online and station trades) is IRR 193,000 bn (USD 4.37 bn).

– Central Bank of Iran announced a directive based on which Exchange Houses can re-enter the currency transactions after a while. Most important considerations of said bylaw are:

• The trades of remittance orders shall only be via NIMA platform;
• The trades currencies as cash shall be submitted on NIMA platform;
• The sale of purchased currency remittance orders shall be carried out no later than 3 business days;
• Exchange house commissions are maximum 1% of purchased volume on NIMA platform;
• All transfer costs shall be covered by clients.

In the Market

Equities ended today on a moderate note after the consecutive session of the pure bullish trend. TEDPIX (+0.19%) closed a were attacked by sellers in early hours but managed to close a tick higher at 133,584.41 with 256.12 green points. IFEX did exactly the same and ended with an advancement of only 0.32%.

Today’s trades have a shade of pessimism from the investors’eyes as the previous trend of the market needed a correction phase after all. Lower trading volume and value, contrary to the other days, proves that participants were a bit cautious for the secondary market USD/IRR rate which by the way determined after hours and made the day for a bullish rally tomorrow.

As before, the heavy weighted Chemicals (+0.46%) were on the top today with its giants sending mix signals. Pars Petrochemical (PARS, +0.14%) ended a journey of eight green days finally. Persian Gulf Petrochemical (PKLJ, +0.67%) start the day notably higher, however, like others it was not able to hold to its gains and ended below its flat line.

Despite reimposing of the US sanctions, export-based Metal (+0.58%) tickers were amid top performers of the day. National CoppIndustriesoes (MSMI1, +2.41%) solely placed 138.18 positive points on the index with more than 157 mn traded shares. Isfahan Steel Co. (ZOBZ1, +3.56%) was the IFB’s sweat heart today and closed with more than 400 mn shares changed hands and still left orders in sell queue.

In general, after the realization of FX secondary market rate, equities have a chance to grow for 20-30% from this point forward. However, it could take some time due to the necessary technical corrections of the market.

Source:

2018, USD/IRR priced around 80,000 on Iran FX secondary market!, Tuesday, Aug 07, p.1,<https://agahgroup.com>