US intends to end Iran Oil sanctions waivers for good!
– Unconfirmed sources at Washington post announced that president Trump of the US is to end Iran Oil sanctions waivers for good from May 02, 2019 and no longer grant exemptions to any countries despite their oil imports needs. KSA and UAE are in charge of compensation of the supply-side in the oil market, however, the global price of Brent crude hiked to a new high of +74$ per barrel just minutes after the news came out.
– PAYA credit rating agency credit ranted Iran’s first company -BBB with investment grade. Kerman Motor Co., an Iranian automaker, is now titled the first company ever with a credit rating based on international scales. PAYA group has a global joint venture with JCR Euroasia rating co. (a Japanese entity) which brings the international know-how, software and the methodology to the table. Ratings are in line with SEO’s guidelines which as the regulator, has granted the group a credit rating license in 2018.
– In line with the execution of corporate governance schemes in Iran Capital Market with global standards, the Securities and Exchange Organization of Iran announced that subsidiaries and affiliates can no longer hold any shares of the parent company. Before this, parent company’s shares of some Iranian firms were held by its subsidiaries in the form of common shares but now it shall be less than 10% and in form of treasury stocks only which have no voting rights during the shareholding period.
In the Market
Equities performed a bit anxious today as the news on the US oil exemptions spread a bullish air amid investors. TEDPIX (-0.03%) changed a +3K points advance with a narrow loss towards the end while IFEX (+0.68%) resist and closed a bit higher. Analysts believe that even with no sanctions waivers, Iran oil exports would remain above 1 mn barrels per day and president Trump is only manoeuvring to create panic.
Almost all market participants agree on the fact that Iran Capital Market is still the best single destination for investors and monthly data is proof here. Only in the first month of 1398 (2019/20), the stock market recorded a 14% rise contrary to less than 4% performance of other parallel investment markets like FX and Gold. This potential is due to the fundamental situation of listed companies and their better than expected operations mostly and it is widely believed that equities will continue their super bullish trend unless a cardinal shock affects the economy in general.
Customs department data show no slowing exports of basic metals and petrochemical products whatsoever and companies balance sheets demonstrate the fact that they were successful to repatriate the FX proceeds
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