Market News

– In its latest hostile action against Iran, the United State (OFAC) put some TSE listed companies under the SDN list subjected to secondary sanctions. The reason behind this action is the fact that sanctioned companies are in close relations with Iran “Basij” forces. Below list shows the details of listed tickers subjected to this sanctions:

• Bahman Group (BHMN);
• Mellat (BMLT) – Parsian (BPAR) – Sina (VSIN) Banks;
• Calcimine Co (KSIM);
• Isfahan Mubaraka Seetl (FOLD);
• Iran Tractor Manufacturing (TRIR);
• Iran Zinc Mines (ROOI);
• TechnoTar (TKNO);

– Central Bank of Iran is now ready to change lanes from SWIFT to an alternative financial messaging service as the deadline of sanctions reimposing is closing. An informed member of CBI, who wishes to remain anonymous, said that CBI is considering other options for replacement of SWIFT before November the fourth. EU promised of a dedicated financial line between Iran and its members as a part of its commitments on JCPoA after the withdrawal of the US.

– Following the CBI’s FX regime reforms and in a move to bring back FX revenues to the economic cycle, now all exporters are obliged to bring their currency proceeds into NIMA platform. Previously this restriction was only for Oil, chemical and metallic producers and non-oil exports were allowed to sell their currency revenues at free market FX rate.

In the Market

Stocks cruised moderately higher today, ignited by strong earnings at the mid-session and then fueled by a resurgence in the heavily-weighted sectors throughout the day. Despite the newly imposed sanctions on TSE listed companies, TEDPIX (+0.05%) stood tall after a brief shock early morning while IFEX (-0.35%) performed better than expected and revived lots of what has been lost initially.

Stats show that a figure of around IRR 1,681 bn (cUSD 40 mn) has been withdrawn from the market, however, experts believe that this shall be counted as a chance to enter the market. Since the sanction had nothing new to say and all the named companies were somehow dealing with them for quite a time, the overall profitability of these firms are intact as before. As H1 reports closing in, it is anticipated that a new wave of bullish trend would hit the market, mostly due to far above average performance of companies in terms of sales and production.

A good chunk of money was injected into IT (+0.95%) sector today as some of its tickers did off the charts in terms of performance. Payment companies like Saman Kish (SEPK, +2.15% – closing) and Beh Parkhadt Mellat (PRKT, +3.73%) were in high demand from the beginning. Almost other names of the sector did perform green ranging from 1-5%.

As the US secondary sanction is imposed on the giant Metal Producer, Isfahan Steel Co. (FOLD, -1.77%), a huge part of recently injected cash from the retail side was taken out by them in fear of profitability reduction the company might face. However, FOLD published a clarification stating that theses sanction has nothing new and they are dealing with them for a long time. After that, trades got back into its right course of action and last deals were closed +0.99%.

Finally, the sanctioned banks, most importantly Mellat Bank (BMLT, +1.18%) start the day with massive sale pressure dissolving into more than expected demand which made the ticker to close in buy queue.

Source:

2018, The US imposed secondary sanctions on TSE listed companies!, Wednesday, Oct 17, p.1,<https://agahgroup.com>