Iranian Rial Retirement!
Market News
- Following the government approval of changing the monetary unit from Iranian Rial to toman, which is now to be approved by the parliament, the governor of the CBI stressed that such a change will not impose much cost on the government because the current banknotes will remain in circulation along with those new ones to be published. Referring to the dropping of 3 zeros from the national currency, however, he pointed out that since Iran has recently got back on track of economic stability, which is still fragile, the next one or 2 years will be the best time to implement this matter.
- Calling the recent swings in the foreign exchange rate in the last quarter of the Persian calendar year transitory and natural due to demand growth, the government official announced that they are still focused on their plans to unify this rate for which the market stability is a pre-requisite.
- The $16.8 bn worth contract between Iran Air and Boeing to purchase 80 passenger jets was finally inked, which will be delivered within a 10 year period. As the biggest business transaction between Iran and the United States since the Islamic Revolution in 1979, this can be the restart of relations between the 2 countries.
In the Market
After the decision by non-OPEC members to reduce oil production by 600,000 barrels per day, the oil price nearly hit $57, which pushed names in the Oil Products space into the green zone, some also facing buy queues early in the session. Pars Oil (-0.06%) was the only ticker ending beneath its flat line.
According to the Auditing Organization of Iran, Saipa Group has been asked to remove ambiguities on its subsidiaries like Nikan-e E’tebar in order to allow its ticker to be reopened. After a positive start, most symbols of the Automotive space went under sell-off pressure and faced sell queues. Only Charkheshgar (+0.18%), Mashhad Wheel Mfg. (+0.58%), Iran Automobile Spare Part Mfg. (+0.19%) and Iran Tractor Motorsazan (+0.07%) ended above their flat lines.
Following the trades in the previous session, names in the Insurance industry like Mellat Insurance (+3.18%), Day Insurance (+2.01%) went through rather positive trades, led by Dana Insurance (+4.66%). There are attempts to exempt such companies from the VAT. In an announcement posted on Codal.ir considering the company’s recent price hike, Dana Insurance officials stated that no significant changes have been done in the budget as well as the capital raise process.
In the absence of major symbols, the remained tickers in the Banking space went through low volume and negative trades.
Most names listed in the Iron Ore space went through negative trades after a positive start such that only Gol-e Gohar Mining and Industrial and Damavand Mineral ended above their flat lines.
The majority of names in the Metals sector were also negatively traded due to the decline in base metals prices. However, tickers like Arfa’ Steel and Metal (+3.53%) and Khuzestan Steel (+1.07%) closed in the green. In Isfahan Steel, the rumor has it that coal price is to increase by 21%, which might lead to positive adjustments.
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