Currency Fund Entering Iran’s Capital Market
* Stressing on a diversified securities market, an official in the Securities and Exchange Organization of Iran (SEO) announced the operation of the first Currency Fund in Iran’s Capital Market starting within the next week as the result of close cooperation with the Central Bank of Iran. This is being launched to put an end to shocks imposed on the physical market as the result of its fluctuations. He also announced the designing of commodity based investment funds, mostly for pistachio and Saffron in the market.
* Aimed at paving grounds for Russian banks to allocate finance to their Iranian peers, paying special attention to the Iranian-Russian projects as well, in line with developing economic ties between the two countries, the Central Bank of Iran entered into an agreement with the Export Insurance Agency of Russia (AKA EXIAR).
* On the sidelines of the annual meetings of the World Bank and the International Monetary Fund in Washington over 13-15 October, the Iranian Minister of Economic Affairs and Finance sat with officials from the Islamic Development Bank and discussed ways through which Iran’s private sector can use facilities offered by the IDB among exploring ways to further the current level of cooperation. Mr. Karbasian also had a meeting with his Malaysian counterpart aimed at developing economic ties between the two countries; among talks, the Malaysian party expressed their companies’ interest and negotiations in financing the subway line in Iran along with their readiness to head a delegation to Iran to take negotiations a step forward.
In the Market
Demand saw a significant rise in the Oil Products group in the first hour of the session such that Pars Oil faced a buy queue early in the session. The group, except from Lavan Oil Refining, Oil Industry Investment and Shiraz Oil Refining which shed 1%, settled with moderate gains.
The majority of names listed on the Chemicals group also ended on a positive note in the first hour but could not keep their positive trend to the final hour; nearly half the space finished a tick below their flat lines, except from Abadan Petrochemical which closed with a buy queue and Maroon Petrochemical that went up nearly 2%. 3 mn shares of Jam Petrochemical were also block traded at IRR 8,350, 1.88% higher.
Symbols in the Metals space started the session strong influenced by the estimated-to-be-positive H1 reports, led by Esfahan’s Mobarake Steel; 20 mn of its shares were block traded at +1.62%. However, they failed in keeping the gains and nearly the whole space finished in the red.
A similar negative sentiment was also seen in the Iron Ore industry with most tickers closing beneath their flat lines. Referring to the role Mines can play in improving employment, the Minister of Economic Affairs and Finance announced the mines’ current capacity to absorb $ 30 bn foreign finance, a part of which is hoped to be received as the result of MoUs signed with Korea, China and Austria.
Following the trend started since the previous session, spare part mfg. companies in the Automotive industry, including Iran Tractor Forging and Nirou Mohareke nearly hit their highs in the early hours and kept their gains through the closing bell. Besides, 87 mn shares of Iran Khodro were also block traded in the retail market at IRR 2,550, 1.96% higher.
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