Market News

– Analyses show that over the period of 15 days (from Sep1-15, 2018) Iranian Oil Exports reached a surprising figure of 1.69 barrel per day which only could be interpreted as a surprising rebound since the previous month’s reports had 1.48 bpd in the same period. Moreover, the total amount of exported oil shipments in August 2018 was 1.92 bpd. News has that India will continue its Iran oil purchases after the second wave on US sanctions hit in November, however, the settlement would be in Indian Rupee in order to be on the safe side from US dollars. 

– The Central Bank of Iran did a report on Iranian Economy and it’s latest developments which shows that non-oil exports fell short in bringing their FX revenues back to the country. During the last 5 months of 1397 (2018/19) total non-oil exports of Iran reached USD 19 bn of which a figure of USD 16 bn shall return to the economic cycle. NIMA platform stats indicate that since the inception of CBI new FX package, the total offered currency surpassed EUR 2 bn and almost 80% of said number belongs to Chemical exporters.

– The mines and industries’ ministry has announced a rather good news for companies with currency facilities regarding their settlement scheme. According to officials, there will be 2 major approaches:

• For large scale businesses: the facility principal (more than EUR 30 mn) along with its contractual FX interest will be exchanged to IRR facilities with the spot LC opening rate and shall be paid in 5 years instalments with 15% independent interest.
• For small to medium-sized businesses: the facility principal (capped at EUR 30 mn) will be exempted from additional interest and shall be exchanged to IRR facilities on the spot LC opening rate. The exchanged figure is going to have a 2 year grace period and shall be paid in 5 years instalments with 15% independent interest after that.

In the Market

Equities had a dreamy day today with the better than expected performance of almost all its sectors. Thanks mostly to a massive injection of money into the capital market, TEDPIX (+2.04%) stamped yet another record high in its history. The index raised more than 2% and broke the ceiling of 160K. IFEX (+1.1%), in the absence of its supergiants, also performed surprisingly good and closed at 1,878.98 stamping a 20.41 points increase.

The top-weighted Chemicals (+0.38%) sector was once again in the spotlight as investors continued to pure fresh money into the industry. Most of the important tickers ended the day in mild green and analysts believed that they have the potential to do another bullish trend soon. The “not so much unrelated” Utility (+3.61%) sector was also highly demanded with all its shares closed with either buy orders left in the queue or deep green last trades.

Meanwhile, the influential Metals (+1.92%) sector started a positive week on an upbeat note. The continuation of commodities IME trades on a free market FX rate is the main catalysts behind the industry’s trend. Despite a handful of export-based tickers, which have concerns on their exports futures, the rest ended the day with better than expected demand throughout the session. Moreover, hopeful future of global commodities trend hand in hand with weakening dollar index made the expectations of the market even higher.

On a flip side, the mid-weighted Banking (-0.07%)  group finished near its previous session flatline. Within the group, some big names like Mellat Bank (BMLT, -2.89%) ended the day with sale pressure overcoming the damnd mostly due to a technical correction the ticker needed. Reversely, as the cash injection to tickers like Saderat Bank (BSDR, +4.77%) seems to never end, their super bullish trend continues. Analysts believed that the industry has grown so far only with injecting fresh money and lacks strong fundamental factors.

In general, the capital market has now selected a forward cash-driven “status quo” and considering the fact that its components are less compensated than other markets by a free market FX rate, the super bullish trend might go on for a while.

Source:

2018, Iranian Oil Exports shows a surprising rebound in September!, Saturday, Sep 22, p.1,<https://agahgroup.com>