Iran Smuggling status is now better yet still is too much!
– In a report published by international customs services (World Customs Organization), the hidden economy of Iran, aka Iran Smuggling status, has been analyzed. Data show that there is a wide gap between the figures stated by Iranian officials and international agencies. Despite the administration’s efforts to fight this underground economy, analysts believe that the smuggling transactions are almost as half of the official imports. The below picture has the details:
– Following the well-organized flow of Islamic Treasury Bills issuance on Iran Fara Bourse, two new issues have been listed on IFB waiting for the initial offering any time soon. TB44 and TB45 have a maturity of 34 and 12 months respectively and will be issued in volumes of 17,663,263 and 6,030,400 securities each.
– After the recent directive of CBI ordering banks to cut daily interest on short-term deposits, bankers analyzed the situation. It is believed that CBI took this measure to take the velocity of money under control along with limiting the money laundering activities. This decision is in benefit of banks and will reduce the weight of IRR 500,000 bn (USD 5.05 bn – USD/IRR 99,000) interest payments to these accounts. Considering the calm situation of parallel investment markets (FX and gold coins) it is believed for money to flow into the capital market or sit untouched in bank accounts.
In the Market
Stocks continued their upbeat trend today yet with lower pace as investors are now more cautious after the previous meltdown. TEDPIX (+0.50) jumped for a soft 790 points to reclaim the 157K channel again while IFEX (+0.54%) did somehow the same and closed at 1,826.67. Both trading value and volume were better today, however, they have a long way ahead to reach their picks.
Agah analysis shows that after a serious of cash withdrawing sessions, just the other day, the page turned and a small amount of funds has been injected into the market by the retails side.
The Banking (+1.97%) sector was once again in the spotlight as the new directive of CBI will affect its components’ balance sheet greatly. Tejarat Bank (BTEJ, +5.0) was the absolute celebrity of today and record an all-time high trading volume. More than 700 mn shares of this mid-cap bank changed hands today in a dramatic effort to keep its buy queue intact. Mellat (BMLT, +2.5%) and Saderat (BSDR, +2.79%) banks were also highly demanded by investors.
Elsewhere, in the heavy-weighted Metals (+1.40%) sector the copper giant, National Copper Industries (MSMI, +2.78%) reopened after a 30% capital rise and face with investors welcome in a good shape. The blue-chip steelmaker, Isfahan Mubaraka Steel (FOLD, +1.24%) start the day with better than expected demand, however, the heat got cold soon and the ticker closed moderately higher.
In general, analysts believe that the CBI directive will have a good impact on the capital market by flowing the short-term deposits into the market in absence of commodity markets of FX and gold.
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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