Market News

– Deputy trade and international affairs of NIOC announced some details about the Iran related SPV promised by the EU. According to Amir Hossein ZamaniNia, this specialized purpose vehicle is to connect some small-sized European banks, whom have negligible trades with the US, with Iranian correspondents. Moreover, the High Representative of the European Union for Foreign Affairs and Security Policy once again reassure Iran about the EU will behind this dedicated financial route. However, critics are now impatient with EU promises and seek out some pragmatic steps.

– Central Bank of Iran announced the figures of banks’ liabilities to this body. The total amount of Iranian banks liabilities to CBI reached IRR 770,000 bn (USD 18.33 bn – USD/IRR 42,000) with the following structure:

• Bank Maskan owns the largest share of this liabilities (cIRR 400,000 bn – 52%) which is mostly due to its credit line for Mehr housing scheme and it is not believed to be settled any time soon.
• Saderat Bank: IRR 80,000 bn (10.4%) – Ayandeh Bank: 47,000 bn (6%) – Tejarat Bank: 45,000 (6%) – Mellat Bank: 37,000 (5%) are next in line.
• It is believed that expect Maskan Bank figure, the rest would be settled via the issuance of Islamic Treasury Bills by this year-end.

– The ministry of industries and mines announced about a new pricing scheme for Iranian automakers now waiting for the president’s approval. According to this new directive, automakers can price their products 5% lower than the market margins which can have massive effects on the financial well-being of this industry. After US sanctions snapback and with their international partners leaving one by one, Iranian automakers faced with a huge pile of difficulties ranging from parts production to imbalances of their financial statements.

In the Market

TEDPIX chipped in a 1.3% gain today to reconcile a small part of its previous losses. Prices reaching to more than attractive levels after a solid 3 days decline were the major catalysts behind today’s move. Moreover, the closing Q3 reports ahead along with companies monthly preformance cards made investors realize finally what they are missing. IFEX (+1.64%) rebounded as well after a series of underperforming sessions.

Analyses show that the speeding individuals’ cash withdrawal trend, which was accelerated just the other day, will end soon and once again the market will be on its right path until the year-end. Today’s pick up was most indebted to giants of Oil Products (+3.45%) which revitalized after the global crude prices show an upbeat trend. This bullish optimism reached Chemicals (+1.83%) soon after and made the important names to stamp good green on the overall index.

The rumours of higher prices for automakers was not strong enough to pull out the almost bankrupt Auto (+0.23%) completely out of the red, however, the sparkles of hope ignited in the sector and most of the tickers experienced an upward trend throughout the closing bell.

Source:

2018,EU commits to establishing Iran related SPV soon!, Monday, Nov 19, p.1,<https://agahgroup.com>