In the Market

– Backing down from the zeroing Iran oil sales, the United States grants case exemptions to 8 nations with regards to their oil purchases from Iran just days away from sanctions snapback deadline. Apparently, India, Japan, South Korea, Iraq, China and Turkey are among this shortlist exempted from Iran Sanctions. US secretary of state announced that these exemptions are just a window for said countries to cut their oil purchases from Iran by more than 20%. The global markets reacted to the news rapidly and the crude price fell to $72 channel over the last night’s trades. On the other hand, Federica Mogherini, the High Representative of the European Union, along with foreign ministers of Germany, Sweden and Denmark, has assured Iran that the dedicated financial mechanism of EU circling sanctions will be in operation anytime these days.

– Tomorrow, a new piece of Islamic Treasury Bills will be offered publically on Iran Fara Bourse. Being one of the last two remaining issues of this year’s ITBs, TB37 has a maturity of 15 months and worth IRR 30,000 bn (USD 714.28 mn – USD/IRR 42,000). The below table shows the different pricing scenarios and their correspondent YTM:

– In a study carried out by Donya-e-Eqtesad, the susceptibility of different industry sectors to FX fluctuations in terms of operating expenses, capital expenses and profit have been analyzed. The below table demonstrates the details:

In the Market

Stocks mostly fell on today’s session following conflicting US sanctions snapback deadline which led to a state of uncertainty amid market participants. Despite the fact that exempting 8 nations from oil purchase sanctions, most of the trades were based on scepticism and fear. TEDPIX (+0.04%) forged a narrow victory while IFEX (-0.49%) showed a bit of overreacting. The trading volume and value were also amid the lowest in a while.

News on the US backing down from zeroing Iran oil exports made the global price of crude fell to $72 bp level which added up the pressure on Oil Products (-0.58%) sector. Almost all the tickers of the industry were deep in red after the opening bell, however, reaching their “in-value” levels made investors to bach their holdings a bit and relaxed the trades towards the end.

On the flip side, Banking (+0.42%) which benefited the most from rising FX rates, has on of the highest cash injection by the retail investors during the last two months, especially during the last two trading sessions. Agah analysis shows that a figure of circa IRR 800 bn (USD 19.05 mn) was the share of previous trading days. A higher FX rate had its effects mostly on banks which has the highest FX resources and now it is anticipated that they will granted the right to translate said resources on a free market FX rate.

In general, tomorrow’s session would be of great importance showing the short and mid-term market trend and proves that whether Iran Capital Market got deep enough to surpass the rumours or will continue its emotional behaviour once again.

Source:

2018, US exempts 8 countries from Iran Sanctions!, Saturday, Nov 03, p.1,<https://agahgroup.com>