Market News

– The share of oil exports in Iran FX revenues has been reduced over the past few years which shows that the economy is now less dependent on oil sales. During the first 10 months of 2018, the share of oil exports reached below 48% of total FX revenues. This figure surpassed 80% decade. The dependence of Iran economy to oil exports heralds that the nation was successful in producing industrial goods to compensate for the reducing piece of the oil pie. 

– World steel association data shows that Iran steel production reached a new high during the first 10 months of 2018 stamping a 19% rise contrary to October 2017. Raw steel production of Iran jumped for 10.6% to 2.07 million tonnes. Moreover, the steel makers monthly performance report suggests, despite concerns over the nation’s exports after US sanctions snapback, no threatening reduction has happened so far.

– Following the reduction of FX rates in the free market and with a lower level of policymaker meddling in the NIMA platform, data shows that the two rates are on a converging path after all. Now the anticipations on a concentrated FX market has become more solid and the CBI’s statements towards the matter indicate relaxing positions. Rumours have that officials are looking for a floating unified FX rate below USD/IRR 10,000 level.

In the Market

Equities extended their losses today in a session that only was driven by emotions and overreactions. The falling oil prices, despite a small rebound, was the main catalysts behind this massive plummet. TEDPIX (-2.80%) lost another of its technical support levels and closed below 167K while IFEX (-3.43%) performance was even more dramatic which led the index to 1,800K level.

The oil-sensitive sectors of Chemical (-3.62%) and Oil Products (-4.58%) greatly underperformed the whole market and spread the fear amid other sectors as well in a way that even surprisingly better than expected monthly performance reports of some tickers could not hold against the massive flow of sellers. Isfahan Mubaraka Steel (FOLD, -1.12%) of the heavy weighted Metals (-1.68%) sector is a perfect pitch here as the company sold incredibly higher amounts of products yet faced with gigantic sale queue at the opening bell.

Agah data show the trend of money injection from the retail side has stopped and analysts believe that tomorrow the market will face better situations.

Source:

2018, Oil exports share reduces in Iran FX revenues!, Monday, Nov 26, p.1,<https://agahgroup.com>