Iranian FX secondary market officially inaugurates!
– Following the wild fluctuations in the forex market since late last year and its sky-high jump in early April, the government unified this rate putting the official USD/IRR at 42,000; it then, obliged the offering of foreign currency from exporting oil plus minerals, steel and petrochemical products (which account for 80% of non-oil export) through NIMA Platform. This announcement, however, did not cover the remaining 20% of exporters, i.e. the traditional commodity exporters. As the result of negotiations, the launching of an Iranian FX secondary market was agreed upon and such exporters are now (from today on) allowed to sell their foreign currencies to importers at an agreed price based on supply and demand mechanism.
– Today, 10% of Binalood Neyshabour Agriculture & Animal Husbandry Company’s, equal to 40,000,000 shares went public on Iran Fara Bourse (second market) with the ticker of BAHZ1 through the book building method and its prices ranging from IRR 1,450 – 1,524; each investor, both individual and institutional will be allowed to purchase up to 800 shares.
– After a presidential executive order to deepen Iran Stock Market by offering blue-chip companies to the public, the shares of Persian Gulf Star oil refinery are to get listed on Tehran Stock Exchange. By completing its third development phase, the country will be needless of importing petroleum fuel. Tamin Petrochemical (TAPICO) is the major shareholder of soon to be IPO’d refinery owning 49% of its shares.
– Confirmed by Russia’s foreign minister, Germany, Franc and UK agreed to keep business with Iran independent of the US dollar; he also announced the promise to protect the business from US sanctions.
In the Market
Stocks rallied for the first half of today’s session as investors shelved their trade political fears and set their sights on the Q2 earnings season, yet the sale pressure got stronger towards the ending bell and made all major averages to close near their flat lines. The TEDPIX declined -2.44 points (0.0%) and the IFEX ended the day on 1,237.53 (-0.2).
Led by the recently offered share of Qadir Petrochemical, which has benefited shareholders with 15% up to now, the Chemicals industry saw positive trades today; tomorrow’s IPO might have a role in this momentum.
The Metals group mostly finished above its flat lines; Esfahan’s Mobarake Steel ticker returned to the market 1.6% higher. A rather similar movement was detected in the Iron Ore space, led by Iran Manganese Mines hitting its high. Saba Noor Mineral & Industrial also finished with a buy queue.
Concerns over the reduction in oil supply dragged oil prices up; however, the Oil Products industry ended today in the red. The technical correction and reaching their resistance level can be named as the main catalysts behind the disappointing performance.
Finally, an official in the Cement sector announced the rise in cement price for export and added that new clients, including Qatar, Kuwait and Bangladesh replaced Iraq. Rather negative to balanced sentiment dominated the Cement group.
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