Market News

– In a study carried out by Donya-e-Eqtesad, Iran Government financial status has been analyzed with a bit of historical comparison and an eye on the sanctions snapback. It seems that President Rohani’s administration is under a lot of pressure and must make difficult choices surviving the next two years. Moreover, the administration shall become more organized by utilizing strict financial disciplines. The below picture demonstrates a brief yet comprehensive image of the state financial status:

– Central Bank of Iran announced a new directive on exchange houses activities today. Following the repatriation of export revenues policy and according to this new plan, licensed exchange houses are now able to purchase a maximum of EUR 1 mn (or equivalent in other currencies) in cash or remittance orders on a daily bases, given that they will record the trades on SANA platform. The fees of trades are capped at IRR 1,000 for hard currency and 1% of the remittance order. Also, the FX rate will be the one on the free market.

– SEO’ head of financial entities supervision announced that the practical bylaw of Iranian crowdfunding platforms will be published in a week which allows the financial entities to apply for a crowdfunding license. Moreover, he told the press that the first Iranian real estate fund with the aim of acquiring land and construction for the purpose of renting will be on Iran Capital Market soon.

In the Market

Equities extended their losses again today to finish broadly lower in a volatile session. The stock market was not able to shrug off early angst caused by far better than expected monthly performance reports. TEDPIX (-2.39%) lost almost 4.0K points to surpass yet another important technical support level and closed below 160K level. IFEX (-3.37%) lost even bigger and stood at 1,717.61 level.

Trade-sensitive sectors like Banking (-3.24%) and Auto (-3.79%) greatly underperformed today. No matter what news comes out, these industries need a solid support from the retail side; something that is highly unlikely eyeing the trend of cash injection/withdrawal in these sectors.

Also contributing to the session decline was heavily weighted Metals (-2.30%) along with mid-weighted Oil Products (-3.29%) sectors after investors came to a conclusion that nothing good will come out of global commodity trades anytime soon.

Looking ahead, investors will continue to receive several monthly performance reports on Saturday, however, apparently, the current situation of the market needs a more solid incentive than good performance! The next trading session is of great importance from a technical aspect and if the overall index break today’s ground, it has the potential to go further down.

Source:

2018, Iran Government financial status analyzed!, Saturday, Dec 01, p.1,<https://agahgroup.com>