Market News

– Reporting from Bloomberg, it seems that Europe Union is seeking for an independent banking rout to bypass the US imposed Iran Sanctions on nations alike. Continuing their efforts to save JCPoA, Germany and France are to establish a financial system regardless of united states in order to save their interest in times of disputes over economic sanctions. Should their attempts reach a practical solution, a huge burden will be lifted from Iran Banking sector.

– The Iranian crowdfunding directive, which was ratified by SEO a while ago, is now publically announced by Iran Fara Bourse and will be in effect from today on. Below headlines are the most important in the IFB‘s directive:

• The maximum cap for raising funds through CF platforms is IRR 20 bn (USD 476.2K);
• Crowdsafes will be transferable according to a “to be announced” amendment in 2 months;
• CF participants shall file for an SEO trading code and license before investing in any projects;
• Crowdsafes are not obliged to file with SEO;
• The applicant shall bring 10% of the required fund in the first place;
• CF platforms can have no more than IRR 200 bn (USD 4.76 mn) worth of open projects;

– Iran Steel Production hit a record high over the first 7 months of 2018 showing a 23% growth according to the latest World Steel Association report. The volume of Iran steel production was 11.697 mn metric tones while the figure for the current year reached 14.457 mn tonnes. Moreover, Iranian steel producers supplied 1.981 mn tonnes into markets over the month of June 2018 which stamped a 13.2% rise contrary to the same period last year.

In the Market

Equities had a disappointing session today as economic vertigo spreading and fear of Iran Sanctions like cancer through the nation’s bones. Indecisive day to day decisions made the situation absolutely unpredictable which shows no sign of trust to investors. Major indices fell down from their all-time high as policy-makers proven to be ineffective once again. TEDPIX plummeted for more than 2.5%, stood at below 137K level as the sale pressure forced its way in more and more by minutes. IFEX (-1.77%) performed poorly as well and closed at 1550.19 level.

Today’s losses were broad-based, with most of the sectors finishing in the red. The worst-performing groups were Metals (-3.27%), Chemicals (-2.42%) and Oil Products (-8.20%). There was no lesser of two evils today as almost all the heavy to mid weighted sectors ended the day in the deep red.

After retraction of calculating petroleum products prices based on a free market FX rate, literally, all the ticker of the Oil Products reduced 5 to 10 per cent on their closing and ended the day with massive orders left in the sell queue. It is not clear whether the future is to bring any good news or not for the sector, however, analysts believe that by tomorrow morning the sale queues would end and prices will fall into right order like nothing happened in the first place. Bandar Abbas Oil refinery (PNBA, -9.59%) was the leader of their retraction which placed 377.83 negative points solely on the overall index.

Conversely, the light weighted Transportation (+1.81%) sector was highly demanded in today’s bloody session. Middle East Tide Water (TAYD, +37.39%) got back to the trading board with a surprise and changed hands for almost 2 mn shares. Nearly all sector tickers ended the day in good green as they had reached technical bottoms.

Finally, Auto (+1.25%) sector witnessed moderate trades. The industry orange giant, Saipa Co. (SIPA, +3.48%) was in the spotlight and its shares prices reach above IRR 1,000 again after a while.

Source:

2018, EU seeks independent banking rout to bypass Iran Sanctions!, Tuesday, Aug 28, p.1,<https://agahgroup.com>