Market News

– After series of unconfirmed news around the third batch of oil offering on Iran Energy Exchange, now the deputy international affairs of NIOC announced that Iran will sell 1 mn barrels of its crude on January 21, 2019, at a price of 52.42 US dollars. The smallest lot shall be no less than 35K barrels per each order. Iranian officials have granted NIOC a green light for 3 mn barrels offering on IRENEX. This issue could be settled completely in Iranian Rials and has a clearing period of 90 days instead of 60. 

– CBI’s deputy foreign exchange announced that soon there will be an FX cash market with the participation of major banks and licensed exchange houses. ،This is inline with retrieving of nation’s lost faith in the regulatory role in previous FX hikes. As of today, Iran has a NIMA platform which covers the currency needs of industries while the retail side demand is answered limitedly by banks and not with cash in large chunks.

– After the successful implementation of selected index futures on the Tehran Stock Exchange, now the SEO’s fiq committee gave the green light on warrant securities for selected indices as well. The securities and exchange organization of Iran has decided to deepen the capital market by offering new hedging instruments, and truth be told, the index futures were properly welcomed by all market participants. the below table shows details of said contracts as of Jan 13, 2019.

In the Market

Stocks ended today on a moderately higher note as investors are still cautious with regards to domestic political environment and global commodities market performance. TEDPIX (+0.12%) jump for a soft 202.66 point to stand slightly above the 164K mid-channel. This was IFEX (+0.83%)performed somehow better and closed above 1,949 level.

Today’s worst performer was with no doubt the small-cap Auto (-3.95%) sector as even a +30% price hike was not enough to cover the poor fundamentals of its components. Iran Khodro (IKCO, -5.44%) reopened after a temporary halt and faced with massive orders on the sale side. Its orange rival, Saipa Co. (SIPA, -4.04%) witnessed something even worse and closed with a buy queue.

On the flip side, tickers of Banking (2.02%) sector performed notably higher today as rumours of their capital raising from a free market rate FX translation source is getting more vivid now. Tejarat Bank (BTEJ, +3.96%) offers a 2% block of the Metals (+0.92%) giant, Isfahan Mubaraka Steel (FOLD, +1.08%), on a tender which could bring a fortune to the ticker. Earlier this year CBI obliged banks to sell their non-core businesses stakes at production companies.

In general, the market has what it takes, fundamentally, for a bullish rally up until the year-end, however, the domestic political and economic situation are now very sensitive and if something extraordinary happens with the FX rates again, it would cause unpredictable drivers to act again on all parallel investment markets.

Source:

2019,Iran offers crude at $52.42 bp on Iran Energy Exchange!, Monday, Jan 14 p.1,<https://agahgroup.com>