Market News

– Senior European diplomats have claimed that France and Germany stepped up for hosting Iran dedicated SPV after the rejections by Luxembourg and Austria. In the suggested structure, if  France host that SPV then a German official would be as its manager and vice versa. The mechanism would be based on the bartering of goods between the two nations which omits the need for financial transactions in practice. Rumours have that United Kingdom is considering to join this Iran dedicated SPV under the leadership of France or Germany.

– In its latest attempt to fight money laundering and suspicious cross-border FX transactions, the central bank of Iran imposed new restrictions on POS devices; a transfer cap of IRR 500 bn per day per debit card. This limit will soon be imposed on each National ID code regardless of the number of debit cards one owns. Moreover, the cardholder is now obliged to use a dynamic passcode which is going to be texted to their cellphones upon each transaction. According to CBI’s investigations before this, a figure of USD 11 bn from export proceeds was transferred cross-borderly via the POS devices.

– After the difficulties caused by US sanctions for Iran’s port transportation, now the officials are about to utilize the newly opened port of Al Suwaiq located just 70 kilometers of Oman. This port is ready to receive Iranian goods and Iranian marine freighters of 300 to 1500 tonnes can deliver products there. The low costs along with fast clearance process made this strategic port comes handy in times of sanctions.

In the Market

Equities performed mildly higher and recoup a tiny chunk of their previous losses today as almost all the share prices reached their strong technical support levels. TEDPIX (+0.44) hiked for almost 750 points to surpass the 167K level while IFEX (+0.87%) did nearly the same with equal trading volumes. A mellow pullback in global oil prices hand in hand with super interpreting price levels are the main catalysts behind today’s move.

The heavy weighted Chemicals (+0.36%) hand in hand with Oil Products (+1.24%) sectors had the most of it today with their components jumping between 0.5 and 5%. However, the falling price of global OPEC crude basket made the sale pressure felt more towards the closing bell.

Almost all analysts are unanimous that the market should rebound from here until the year-end, yet the Q3 reports showing a deeper look of companies performance after sanctions are still in solid play.

Source:

2018, France/Germany hosting Iran dedicated SPV!, Tuesday, Nov 27, p.1,<https://agahgroup.com>