Market News

– Following the 10th and 11th administrations’ policy to settle its deferred liabilities to different Iranian entities by issuing treasury bills, four new issues of  Islamic Treasury Bills are now registered on Iran Fara Bourse waiting in line for the public offering. The securities’ details are as follow:

– The new chair of CBI has announced that term deposits (more than 1 year) may come back to Iran Banking sector as inflation rate along with money supply growth surge. Stressing that the chaotic and unbalanced status of Iranian banks and meteoric growth of money supply amid the nation are roots of the current situation, Naser Hemmati told reporters that long-term deposits (up to five years) are now under CBI’s eyes again along with the issuance of governmental Msuharaka securities. Agah analysts anticipate that a five-year deposit account with an interest rate of 25% can greatly absorb and lock the money supply and prevent it from breaching to other unproductive parallel markets.

– In a decision to deepen the Iranian secondary FX market, individuals who have foreign currencies outside of Iran along with firms in possession of remittance orders with non-export sources (services providers who do not have trade cards) can now sell their currencies in NIMA platform at a free market FX rate.

In the Market

Today’s trading session was an eventful one in terms of mixed news and illusive interpretations. Despite an early morning rise, major averages could not hold to their gains and fell rapidly after the ambiguities with regards to IME’s commodities pricing schemes raised with cancellation today’s offerings. TEDPIX plummeted for almost 1% and closed below 137K level while IFEX (-0.72%) did not perform better and finished today at 1,545.23.

Today’s sale pressure was mostly because of Metals (-1.92%) and Oil Products (-3.05%) sectors tickers. It seems that the never-ending battle between IME and the Ministry of Mines and Industry is now hitting its critical level and unless someone backs down, the ending results could be devastating. Isfahan Mubaraka Steel (FOLD, -1.99%) took today’s leadership and placed 180 negative points on the index. This is while other giants like National Copper Industries (MSMI, -2.17%) and Khuzestan Steel (FKHZ, -2.99%) did also perform poorly and made a bad day for the industry.

Banking (+2.43%) sector, on the other hand, had a great show today with its tickers deep in green. Mellat Bank (BMLT, +4.94%) was the front-runner to this move followed by Tejarat (BTEJ, +4.98%) and the Middle East (BKHZ, +4.79%) banks. It seems that the newly injected cash to the banking sector could move the sector higher for a while as all of the shares are in their technical bottoms after all.

Finally, the recent price hikes in the Auto (-3.54%) industry did not bring prosperity to its major names as its components lack proper fundamental financial situation. It is safe to say that almost all of the industry tickers ended the day with massive sell orders ranging from (0.1)% to (5.0)%. Over the weekend news of a presale scheme at reasonable prices which shall be carried out by sale agents did not help the sector either.

Source:

2018, 4 new issues of Islamic Treasury Bills on Iran Fara Bourse!, Saturday, Sep 1, p.1,<https://agahgroup.com>