Market News

– In its latest meeting today, Iran’s Expediency Discernment Council did not make a decision on the two remaining FATF related amendments and once again the future of joining the CFT convention is in deep grey. As the last FTAF deadline closing in, the political pressure of not ratifying the amendments weighed in largely on all investment parallel market left investors with more ambiguities than before. The council delayed discussions up until its next meeting.

– Latest analyses show that Iran’s economy is faced with the danger of another FX jump before the year-end. According to official data, the Iranian government issued 1-year 20% certificated of deposits to gather the unleashed money supply amid the nation and in less than a month all these deposits will be matured. That leaves the administration with IRR 1,200,000 bn (USD 10 bn – USD/IRR 120,000) wandering cash in hands of ordinary people who will probably rush to the investment market in an attempt to keep their holding’s value intact. Gold coins, FX, housing and the capital markets are the destinations of these funds.

– Rumours have that three EU nations, UK – Germany – France, came to a unique conclusion on the Iran related SPV issue and will discuss the final steps tomorrow in Brussels. France will host, Germany will manage and the UK will audit all the transactions with Iran under this special purpose vehicle. Monday will probably be the date of official registration.

In the Market

Stocks lost in large today as negative-sounding headlines, which includes the initial rejection of the CFT bill by the council and ambiguities with regards to the promised SPV, worsened the investors’ sentiment. TEDPIX (-0.28%) start the day in slight green, yet the positive trend faded fast and the index closed one again below the 162K level upon the closing bell. IFEX (-0.89%) performed nearly the same with much lower trading volume and value and closed at 1,962.44.

As always the mid weighted sectors of Banking (+0.39%) and Auto (-3.30%) were once again on the spotlight today. Tickers of banking reached mostly their technical resistant levels and hence hovered around on their daily fluctuation range while the situation for automakers was worst. Nearly all the listed shares of the industry ended the day in deep red as investors have no faith in the future of this sector even with long-awaited price jumps.

Agah analysis shows that up until the previous trading session, a good amount of fresh funds have been injected into the market from the retail side which could bring hopes on the future of the capital market.

Source:

2019,Iran’s Expediency Discernment Council Indecisive on joining the CFT convention! , Saturday, Jan 26 p.1,<https://agahgroup.com>