Iran Central Bank rescue package dries the unleashed money supply!
Market News
– After the offering of Iran Central Bank rescue package and only in 5 working days, a figure of IRR 1,010,000 bn (cUSD 22.56 bn) from nation’s money supply (e.g. liquidity) migrated from streets to 20% bank deposits. Emphasizing on that, the chair of CBI announced that the other two tools of mentioned rescue package (pre-sale of gold coin and IRR deposits backed by foreign currency) was not as effective as.
– After the Financial Action Task Force decision on the suspension of its countermeasures against Iran made public, a statement was released by the Ministry of Economic Affairs & Finance stressing the continuance of other necessary measures by Iran to improve the standards on anti-money laundering and terrorism finance, although they had expected better results.
– Releasing a report which showed the 70% control of the insurance industry of the country by the government, the Iran Chamber of Commerce, Industries, Mines and Agriculture stressed on the need to privatize this industry, which will not only put the companies in line with international financial standards and improve transparency, it will boost competitiveness among those companies as well.
In the Market
Spare part mfg. tickers in the Automotive sector saw a demand rise while symbols of automakers went through sales pressure. Saipa Diesel faced a buy queue, under the assumption that it will have a capital raise based on its asset revaluation. Mashhad Wheel Mfg. ticker was halted after going up 29% in 4 consecutive sessions while Mehvarsazan Iran Khodro also returned to the market at IRR 2,515, going up 10%. Besides, an official in Iran Khodro announced that the company has managed to expand its market share in Iraq by offering two new vehicles in this country.
Among companies listed on the Machinery and Equipment space, Niroumohareke Machinery and Iran Combine Mfg. hit their highs.
Following the weakening of dollar index and in tandem with the growth of metals prices in global markets, the Metals space caught investors’ attention right from the start. Iran managed to export 6.55 mn tons of steel over the 10-month period of the current year, which registers a 48% growth compared with the year before; this amount included 5.36 mn tons of semi-finished steel products and 1.18 mn tons of finished steel products, posting an 89% rise and 25% decline in comparison with the prior year, respectively.
The Iron Ore industry also witnessed balanced trades with Iran Manganese Mines hitting its ceiling.
Despite positive global prices, the majority of names in the Oil Products group settled with slim losses. Pars Oil, however, managed to face a buy queue.
DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.
To contact reporters: Inter@agah.com
