Market News

– On their latest meeting, OPEC members agreed on a production cut addressing the oil prices massive falls during the last month. The good news is that considering the US sanctions, Iran got expected from OPEC production cut along with Libia and Venezuela. OPEC members and Russia agreed to cut their production by 1.2 mn barrels per day (800K for members and 400K for non-members). The global oil prices rose by 5 % in the wake of this agreement. 

– After a temporary halt of banking transaction between Iran and China, the head of Iran-China CC has announced that these transactions, mostly with Bank of Kunlun, got normal and even the two nations create some new channels for transferring funds. The US sanctions and eventually China oil purchases stop are the two main reasons behind the hiccup between Iran-China banking transactions. However, it seems that Chinese authorities imposed another layer of scrutiny in doing business with Iran.

– Agah analysis of individuals participation trend shows that since the start of 1397 (Apr 2018) a figure of IRR 61,880 bn (USD 520 mn @USD/IRR 119,000 – free market FX rate) has been injected to the market by individuals and nearly 50% of which (IRR 31,980 bn – USD 268.74 mn @USD/IRR 119,000 – free market FX rate) has been withdrawn from the market. Below picture shows the details:

In the Market

Despite the improving global oil market along with a mildly positive performance of global commodities, equities closed mostly near the other day’s flatlines. TEDPIX (+0.13%) experienced rather balanced trades as investor took precautions regarding their investments. IFEX (+0.74%) also performed moderately today az its mega-caps had a slightly green day and settled finally at 1,858.34 level.

Isfahan Mubaraka Steel Co. (FOLD, -1.08%) poor performance within the Metals (-0.74%) space was reflective of the ongoing effort to liquidate/reduce exposure to the market’s most heavily-weighted group. The sector’s non-response toupbeat exports report was also indicative of the negative sentiment hanging over the sector. Between the sector’s tickers, only Isfahan Steel Co. (ZOBZ, +4.55%) ended the day with a massive buy queue amid the news of its extraordinary performance.

Elsewhere, the news of a free market pricing scheme for automakers made the day for small-cap Auto (+4.48%) sector tickers with almost all of its tickers ended the day in heavy buy queues. The industry also sat on the throne of highest traded volume of the market today, yet investors must be alarmed as the sector has super poor fundamentals.

Finally, within the Banking (-1.53%) sector, mid-weighted stocks were one of the most-heavily hit groups today as concerns over CBI’s green light for a free market FX translation rate along with ambiguities of troubled banks capital raising got stronger. Mellat Bank (BMLT, -3.18%) placed –93.54 red points on the overall index as the trend of individual’s cash withdrawal continues.

Source:

2018, Iran exempts from OPEC production cut!, Saturday, Dec 08, p.1,