Market News

–  After EU reneged on the announcement of the official inauguration of Iran related SPV due to an apparent disagreement between Italy and Spain, now the German foreign affairs minister told the press (by unconfirmed sources) this structure will only cover trades of goods that are not sanctioned by the united states. This is, if true, in direct violation of the SPV ultimate goal to circumvent the US sanctions after its withdrawal from JCPoA. The FX and gold coins markets reacted to this news fast and once again went rogue in price hikes. 

– Following the official announcement of Iran Central Bank with regards to regulations of cryptocurrencies, the first Iranian crypto coin named “PEYMAN” has officially launched by Phoenix Co. in a joint venture with 4 banks of Mellat, Melli, Pasargad and Parsian. These crypto tokens are based on 2 kilograms of gold and will be initially offered to the public (ICO) in 1 bn pieces. The company has made the initial arrangements with Iran Fara Bourse for the exchange to be another ICO and trade peer. Many believe that using blockchain technology would help Iran greatly to bypass the US reimposed sanctions.

– Mahan Airline is to issue Islamic Sukuk securities of Intifa’a worth IRR 1,000 bn (USD 8.33 bn – USD/IRR 120,000) in order to pool its financing needs. The airline had previously offered Ijarah Sukuks on Iran Fara Bourse. Last week the German government banned flights of Mahan Air in its airfield due to delusive allegations of military activities. Securities and Exchange Organization is serious to develop Iran debt market with bringing in more Islamic financing tools and in this line, the Warrant securities will be on the capital market soon.

In the Market

Equities ended the week with sideways trades and remained mostly unchanged in the last session. TEDPIX (+0.09%) closed at the edge of 160K level down from 164-5K from Saturday. IFEX (+0.89%), on the other hand, went up by two ticks yet ended below its week start level.

In the absence of proper political and economic drivers for a prospectus capital market, solo stocks of small to mid-weighted sectors got the steering wheel in hands. It seems that now not even rumours are effective to move up the overall index and the market lost its sensitivity towards monthly and Q3performance reports. A possible jump in the FX and gold coins markets due to indecisions of EU on its promised SPV made investors sharp on those parallel markets movements.

Vale mine disaster in Brazil made the supply to fall short in global markets which ended in a price hike of Iron Ores. This is the main reason behind today’s move of some names in Metals (+1.12%) and Iron Ores (-0.18%) sectors. After a series of unfortunate events for the steel giant, Isfahan Mubaraka Steel (FOLD, +2.02%) faced with great demand today and placed 191.68 green points on the overall index. This also was the case forSaba Noor Mines (KNRZ, +4.34%) with even greater interest from the retail investors’ side.

Trades of highly demanded Banking (-0.87%) and Auto (+1.10%) sectors were slightly slower today as these sectors need a break to gather more power for another rally from now until the year-end. Despite the super heavy capital raise of Tejarat Bank (BTEJ, -3.45%), the ticker faced with massive supply and ended the day in a sale queue which shows a good chunk of its upside move has been previously predigested in rumours.

Finally, the tickers of gold-backed ETFs like Lotus (LOTF, +1.77%), Kian (KIAN, +0.82%) and Mofid (MOFD, +0.57%) funds ended the day with greater than expected demand as things over the gold coins and FX markets are now more complicated than before.

Source:

2019,More ambiguities towards Iran related SPV! , Wednesday, Jan 30 p.1,<https://agahgroup.com>