Market News

– In their latest attempt to minimize the aftermath of US withdrawal from JCPoA, Europ Union is to utilize an Iran dedicated financial rout in order for their firms to keep up their businesses with Iran. Doing as such, EU is to offer an Iran bilateral financial treaty easing the transfers of funds between two nations’ merchants using their very own currencies. The details of this unique financial system are yet to be published before November 04, 2018.

– The new chair of the Tehran Stock Exchange announced that soon (less than a month) there will be futures contracts on equity portfolios or indices on both TSE and IFB. After this new instrument, there are the Warrant securities waiting for pragmatic procedures after the initial consent of the Fiq committee.

– The head of Iranian private banks association announced that the CBI has decided to continue with the previously extended bank deposits of 20% interest rate scheme for another fiscal year started from Aug-Sep 2018. This happened amid the anticipations of higher interest rates on banking deposits, shows the policymaker is decisive to present an ultimate banking rescue package (which has no extraordinary risk free interest rate) and is now just buying time.

– Only a day left to the inauguration of oil sales on Iran Energy Exchange, now the deputy oil minister has announced that foreigners are able to purchase Iranian oil via their equity trading license and code. The process of issuing a trading license shall take no longer than a week and the oil buyers credentials will be kept strictly confidential with SEO.

In the Market

The TEDPIX lost 1.23% (closed at 178,841.31) in a volatile session today, in which it never touched positive territory. Disappointing earnings reports from big names of Oil Products (-4.0%), Auto (-1.65%) and Banking (-1.90%) rattled a fragile market pestered by peak-earnings concerns. IFEX (-2.28%) fell even harder and lost -47.15 negative points to close at 2,018 level.

A stronger-than-expected advance H1 earning reading of other sectors took a backseat in today’s trading as investors found the financials not satisfying enough. The encouraging profitability (or reducing pace of loss-making) figures of medium-weighted industries did not help the market as most analysts believe that the market was in need of a deep time-price correction.

Agah analyses show that a trend of individual’s money supply has turned negative during this correction phase. The below picture demonstrates the details as of last trading session:

It seems that the market will fall further for some other sessions (1 or 2) as the overall index reaches 173K level.

Source:

2018, EU offers Iran bilateral financial treaty!, Saturday, Oct 27, p.1,<https://agahgroup.com>