Market News

– On its latest report, Thompson Reuters claimed that during the last two months of 2018 Iran has exported less than 1 mn barrels of crude per day (Iran Oil Sales down). This is while that two major importers of Iranian oil, Japan and South Korea, just started their imports again after the US exemptions. Below picture has the details:

– Tomorrow a new issue of Islamic Treasury Bills will be offered to the public in Iran Fara Bourse for the first time. This ITB piece worth IRR 17,663.26 bn (USD 147.193 mn – USD/IRR 120,000) and will be matured on 9 August 2021. Excluding that, as of today, there are 23 outstanding issue of treasury bills in the market with the following details:

– Following the government’s intentions aimed to repatriate exports currency proceeds into the nation, now the parliament members try to add a clause to the new FX legislation penalising the merchants who do not inject their export FX into the economy. According to Majlis news agency, there will be a 2% per month penalty for those keeping their export proceeds out and in case of a delay more than 1-year, it would be a clear case of malversation and has imprisonment upon the felony. Moreover, Iranian senators are to allow imports of raw materials, machinery, agricultural products and pesticideswithout the need of real FX transfers (it could be settled directly with exports proceeds outside of Iran)

In the Market

Stocks tumbled today in a session that could only be called a “full panic attack”. Despite the fundamentals of listed tickers and far better than expected performance of most sectors, investors chose to act emotionally and pull the major averages back to new lows. TEDPIX (-2.21%) fell for more than 3,600 points to stand again below the 162K level. This is while IFEX (-1.06%) was not that different and moved further away fro 2,000 level.

Last night, lots of market giants published their Q3 reports and it was obvious that there is nothing to fear about after sanctions snap back. Even the global crude oil price hikes could not lift the directly related Oil Products (-3.46%) and Chemicals (-2.44%) industries and the sale pressure was even more on these industries.

It shall be noted that a couple of sectors, like mid-weighted Banking (-3.47%) and large-cap Metals (-1.41%) published weak performance reports, however, it worth pointing out that their performance was anything but disappointing. The only thing that investors of the banking sector saught were the official green light from CBI on banks FX translation rates, which is somehow inevitable, yet the central bank chose to publish the news on their general assemblies.

Agah analysis shows that up until yesterday, the trend of injecting money from the retail side was positive yet it is believed that today a good chunk of that could be withdrawn from the market.

Source:

2019,Reuters claims Iran Oil Sales reached below 1 mn barrels! , Monday, Jan 21 p.1,<https://agahgroup.com>