CBI rescue package effects on
Iranian mutual funds analyzed!
– Just a month shy from the Persian year 1396 (2017/18) and due to unleashed volatilities of the FX market, Iranian central bank proposed a rescue package aiming to dry the wandered cash in hands of the society. Now months after the CBI’s decision, effects of the plan have been analyzed by “RasamFunds”. Below tables show the inflow/outflow streams to/from Iranian mutual funds in different periods. The conclusion is that whilst the rescue package drained the total AUM of said funds, the equity portion of their portfolios has shown growth.
– Notified by the cabinet members, the demanded wheat for the baking industry will be provided via Iran Mercantile Exchange at IRR 9,000 per kilo from this year on. The government trading corporation (GTC) is obliged to purchase the excess amount of wheat from farmers with a guaranteed price.
– In regards with the USD/IRR exchange rate unification on April 10th, which led to the introduction of the Integrated Foreign Currency System, aka NIMA, the governor of the Central Bank of Iran stated that more than $3 bn of the FX needs on the demand side has been allocated and more than $2 bn has been provided since this decision (11-28 April), which shows that there has been no delay in foreign trades, although admitting that the system is not without flaws and promising that they would be soon addressed.
In the Market
The value and volume of trades were light ahead of the upcoming holiday tomorrow, in addition to the previously said sources of ambiguity putting a brake on investors’ purchase decisions.
Following the Central Bank of Iran’s attempts to implement reform in Iran’s banking system, Samen Credit Institute, Mehr-e Eqtesad Financial and Credit Institute (with IRR 12,000 bn in capital on the IFB) and Bank Ansar’s (with IRR 10,000 bn in capital on the TSE) merger is in its final stage and the new bank will start operating within the upcoming days. After implementation, investors will be able to purchase the shares of the new bank on the capital market. The Banking sector ended today’s session with no particular movements. After a 2-month halting period and following holding its AGM, Bank Gardeshgari (Tourism) returned to the market shedding 20% at IRR 1,100.
Higher demand was seen in the Oil Products group early in the session, although the group settled with slim gains eventually.
The Automotive industry continued to see positive trades, led by Saipa and Saipa Diesel, gaining more than 2%. Electric Khodro Sharq and Iran Tractor Mfg. Casting went up by 4%.
While the Metals group finished mostly in the red, the Iron Ore space saw better trades with Iran Manganese growing by 3%.
The Sugar sector also finished this session mostly above its flat line with Shirvan, Qouchan & Bojnourd Sugar, Shahroud Sugar and Hegmatan Sugar seeing higher demands the more we approached the end of the session.
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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