Iran Fara Bourse ready to carry out the first ITO in a regulatory sandbox!
– After the ratification of the first official regulatory framework for crypto-currencies by the Central Bank of Iran, now Iran Fara Bourse is ready to perform the first asset-backed ITO (initial token offering) in a regulatory sandbox which redeems any need for a change in rules of law. Asset-backed ICOs will be under the supervision of SEO since it is related to tokenization of listed securities. CBI shall depict a framework for other types of these cryptos backed by FX, precious metals, etc.
– In an effort to fight systematic corruption of government dedicated import FX (USD/IRR 42,000) and inline with the repatriation of FX currencies by exporters, the money and credit council of Iran ratified the CBI proposed plot for a platform that rank merchants by the level of commitment they have with regards to their FX obligations. Using this new platform, importers will be banned from any services should they have undone FX commitments. Banks will be under scrutiny and once they have bad clients a penalty would be imposed by either CBI or Industry & Mines ministry.
– Today 1 mn barrels of gas condensates (product of south pars site) will be offered on Iran Energy Exchange in 35,000 barrels lots. The settlement scheme is 20% in Iranian Rial and the rest 80% in foreign currencies. The IRR part shall be settled in cash while the FX part can be in credit. 2 hours before the offering, 6% of the IRR part shall be wired to an account announced by CSDI. The buyers’ names short-list of this offering would be classified like the previous crude oil offerings in order to prevent any possible countermeasures by the US.
In the Market
Stocks continued their bearish trend for another day as more ambiguities inject into the market by hours. The lack of fresh funds are now so obvious in the market and just micro to mid-cap single shares might perform somehow acceptable. TEDPIX (-0.42%) started the day in red and keep the pace throughout the end and closed at 157,311.09 level. The current level of the overall index is the most vital as if lost, it has the potential to go further down to 140-145K area. This is while IFEX (+0.06%) almost stayed unchanged with record low trading volume and value.
Today’s biggest loser was with no doubts the mid-weighted Banking (-1.73%) sector. Being under the spotlight for a while, now investors are impatient with all the sector’s rumours and that added up the sale pressure today. Future contracts on the banking index also were with higher supply today as market participants see no good performance in a foreseeable future. Mellat Bank (BMLT, -2.83%) recorded 87.47 negative points on the index to extend its losses to more than 18% from the pick price.
Things were not any better in heavy weighted Metals (-0.32%) and Chemicals (-0.09%) sector as most of these sectors giants ended the day in the red. National Copper Industries (MSMI, -0.78%) performed poorly despite its sizeable capital raise and better than expected performance of global copper. Pars Petrochemical (PARS, -0.87%) was also with higher supply than demand and extended its losses for the second consecutive days.
Finally, it is safe to say that the true winner of today’s market was precious metals. The gold-backed ETF of Lutus Investment Bank jumped for a soft +0.64% to top its gains at +3% for the previous week. The price of Bahar Azadi Gold coins also reached IRR 44,400,000 a piece stamped a 0.70% rise contrary to the last trading day.
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