In the Market

– After the recent chaotic situation dominating the Iranian economy, Iran Chamber of Commerce offered an exit plan to the president Rouhani’s administration containing 12 reformative approaches. According to the headlines which the head of ICC sent the first VP, Eshaq Jahangiri, the government, most importantly, shall:

• Stop payment of subsidized USD/IRR ar 42,000 rate to any goods and services;
• Let the required import FX for all goods and services (including the essentials) supply by the secondary FX market;
• Stop controlling the FX market in its current unhealthy manner and let the secondary market dictates the prices;
• Oblige SMEs to bring 80% and giants 90% of their export FX revenues into the secondary market;
• Bring its disposable FX revenues to the secondary market and save the surplus (from 2018/19 budget bill rates) into a deposit fund overseen by the CBI,
• End the unlimited subsidized supply of gasoline/petroleum, limit the IRR 1,000 per litre supply and make the excess consumption fuel prices realistic.

– In a report published by RasamFunds, the best performing mutual funds of Iran Capital Market for the last week has been announced. According to the stats, Hasty Bakhsh Agah, an ETF managed by Agah Group placed the first in terms of weekly performance by 7.4%. The below table demonstrates the details:

– Rates on Iran Debt Market, especially in Islamic Treasury Bills (ITB), has fallen down to a more logical range as investors feel more secure about the future FX fluctions. Stats show that amid 23 issues of ITBs, with DTM ranging from 57 to 826, YTM figure is now reached 26.77% on average (this was around 30% just weeks ago). Below chart demonstrates the latest status:

In the Market

Stocks opened today on a widely lower note as the remaining irrational money left the capital market for good. However, after the mid-session, heavily weighted tickers did a great comeback and faced with massive demand which got more stronger even throughout the end. TEDPIX (-0.70%) regained the 175K level again while IFEX (-1.99%) experienced another correction on most of its components.

Agah analyses show that during the last 4 negative trading days, a figure of IRR 8,400 bn (USD 200 mn) had left the market by the retail inexperienced investors and returned to parallel markets of FX and gold coins. Today’s jumps in USD/IRR rate along with hikes in gold coin prices are facts to this. Now it is only believed that the market shall get back to its right bullish course with fewer emotional fluctuations and more logic behind.

Major names of Metals (+1.49%), Iron Ores (+2.81%) and Oil Products (+2.06%) digested most of the demand and advanced from negative to positive territory during the trading hours. Experts believe that these sectors had the most fundamentally sound situation amid the market industries.

Source:

2018, Iran finally joins CFT convention!, Monday, Oct 08, p.1,<https://agahgroup.com>