Market News

– SEO‘s deputy supervisory department of financial institutions has announced that Iran first credit rating institute starts its operation after granting its license by the organization. Borhan Credit rating license issued on Aug 11, 2018, and inaugurates its activities aiming to reduce financing costs of Iranian entities by grading them on the basis of their default risk and financial well being. 5 other admission requests have been filed with SEO and the organization is to issue their activity licenses as well soon.

– In a study carried out by TejaratFarda, all data shows that the sleeping beast of Iran Inflation has woken up for the producers’ index this time. According to statistics, the producers’ price index (PPI) experienced a point to point inflation of 27.8% for Tir month (Jun/Jul 2018) and the monthly rate stood at 10.5%. The industry production sector has the most rise in P-P inflation by 37.9%. Below chart is to demonstrate the accelerating trend of predictive inflation.

– Iran Oil sale stats shows that after the intentional rise of exports in April 2018, selling almost 3 mn barrels per day on average, Iran oil exports followed a downward trajectory just months before the US sanctions snap back. The United States aims to zero Iranian oil exports, however, most analysts believe that in the worst case scenario, economic sanctions only reduce the nation’s exports by 500-700K bpd. The latest OPEC report, however, has that Iran oil production reached 3.73 million bpd on Jul 2018 which shows a decrease of 56.3K bpd.

In the Market

Equities notched their first gain on today session after the other day’s decline as the investors showed a bit of trust to export based sector. With its heavy exposure to commodity tickers, TEDPIX (+1.87%) raised again to above 130K level while IFEX (+1.22%) also outperformed today and closed at 1,501.42.

The main catalyst behind today’s move was a letter issued by the ministry of industry and mine which announced that petrochemical feedstock will be price based on a USD/IRR 38,000 rate. Selling their products at the free market FX rate, it shall pose a huge positive impact on their profitability. Chemicals (+2.46%) led today’s super bullish trend and its giants placed many green points on the overall index. Pars Petrochemical (PARS, +3.11) was highly demanded during the first hours, yet could not hold to its full gains, but still closed higher contrary to the last trading session. Parsian Oil & Gas (PASN, +4.78%) changed hands for more than 45 shares and placed 181.25 green points on the index.

The top-weighted Metal (+3.13%) sector got off to a solid start but weakened as the day wore on, yet eventually settled higher. Within the group, giant copper maker, National Copper Industries (MSMI, +4.63%) was a top performer by recording 257.52 points on the index. Isfahan Mubaraka Steel (FOLD, +2.40%) was next in line with 102.27 million traded shares. Analysts believe that not forcing prices on the industry over IME trades will help a lot for the sector reaching its true potential.

Finally, the Oil Products (+2.57%) largely indebted to the stable +70$ oil prices was on amid top performers and most of its components closed the day moderately higher. Bandar Abbas Oil refinery (PNBA, +2.56%) had better than expected trades while Laval Oil Refinery (PNLZ, +5.0%)ended the day with orders left in buy queue.

Source:

2018, Iran first credit rating institute starts operation!, Tuesday, Aug 14, p.1,<https://agahgroup.com>