Foreign investors deep in Iran renewable energy sector!
– The head of Renewable Energy and Energy Efficiency Organization of Iran has announced that the capacity of generating electricity from renewable resources in Iran will reach 1100 megawatts by March 20, 2019. Counting the new 450 MW of under-construction power plant, so far, IRR 10,000 bn (USD 2.38bn) has been invested in Iran renewable energy sector brought half and half by both the private sector and foreign investors.
– Central Bank of Iran issued a directive allowing banks to open FX deposit accounts for Iranians who are willing to deposit their foreign currency in interest accounts and receive FX upon the withdrawal. Interest on these accounts are:
- EUR: 3% annual
- AED: 2 % annual
- USD: 4% annual
The payment of principal along with its interest for all FX deposit accounts are guaranteed by CBI itself.
– Recent stats released by Statistical Center of Iran show that Iran Inflation rate reached 9.7% in a 12 month period ended Aug 22, 2018, recording 1 per cent rise contrary to the same course last year. Despite being still in the one-digit zone, the scariest part of the report lies where the monthly inflation rate stamped a new high of 5.5% MoM. Analysts believed that with the current course of action, the annual inflation rate would reach +40% by the end of the current Persian calendar date.
– The first supportive package of EU for the development of the Iranian economy with a focus on the private sector worth EUR 18 mn has been ratified by EU members and is now in the line of deployment. Being under the supportive plans of JCPoA, this is the first set of an EUR 50 bn package agreed between two nations which have EUR 8 mn dedicated to the development of Iran private sector.
– After the most recent FX package released by the new CBI chair aiming to maintain the peace on Iran FX market, now the central bank has published a report showing the nation’s FX transactions volume in a 15 day period. It is divided into two categories, NIMA trades and SANA rates (weighted average of exchange houses rates), the first is dedicated to the country’s FX transactions generated from import/export. Latter shows currency trades happened in exchange houses which address the retail demand. According to CBI stats:
- NIMA platform : Demanded = EUR 566 mn, Supplied = EUR 377 mn
- SANA platform: Sold = EUR 805 mn, Purchased = EUR 437 mn
In the Market
Today could be a record-setting day for the stock market, with the early advances of both TSE and IFB, however, Both indices faced with massive sale pressure towards the closing bell. TEDPIX (-0.47%) closed beneath its flatline and could not hold to its all-time high of 138K. IFEX(-0.53%) also lost it after the first hours and ended the day on 1,545.06.
Analysts believe that the main reason behind today’s disappointing performance was indeed the freat of companies’ monthly reports. Due to the US sanctions snap back, now market practitioners have their doubts in listed tickers abilities to export their products in a gentle fashion. Needless to say that disputes over the IME pricing methods are still in place which is a source of uncertainty amid investors.
Chemicals (-1.37%) was the leader of today fall down as its super giants failed to convince investors to be worthy of trust. Pars Petrochemical (PARS, – 3.87%) ended the day with orders left in sell queue after its mother holding, Persian Gulf Petrochemical (PKLJ, -1.18%) released a worst than expected production report. Kharq petrochemical (PKHA, -2.97%) was next in line along with some other minor names. However, some small-cap tickers like Ghadir Petrochemical (PGHZ, +4.98%) which were left out in the previous rally, were highly demanded and ended the day with orders left in buy queue.
Finally, the situation in Metals (-1.84%) was somehow the same, except that one shall add the falling global prices along with a strengthening dollar index to the equation. Isfahan Mubaraka Steel (FOLD, -2.24%) traded for more than 55 mn shares and placed 210.03 red points on the overall index. National Copper Industries (MSMI, -2.23%), despite an early morning rise, ended the day a tick below its zero. All these companies have the mutual concern of exports which will affect their balance sheet the most.
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.
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