Days of vertigo on Iran FX market!
– Iran FX market is experiencing another state of hyper-volatility these days with rates reaching all-time new high after a short windowed period of solace. USD/IRR rate jumped to near 15,000 level at Sana platform (retail transactions). Analysts believe that the main cause of this mayhem is the fact that the 20% bank deposits term opened months ago as a part of CBI’s rescue package will be reached soon and ordinary people rushed to keep their monetary value in tact purchasing non-productive assets of gold coins, which its price btw reached IRR 47,000,000 level) and currencies.
– Yesterday a new piece of Islamic Treasury Bills got listed on Iran Fara Bourse board and is now ready for its trades. This issue worth IRR 14,360 bn (USD 341.90) and will be matured in Aug 2019. The below table demonstrates the details.
– Iranian government granted its consent with regards recognizing of cryptocurrencies mining as an industry and soon there will be a valid rule of law on this matter. According to officials the national cryptocurrencies of Iran has the following characteristics and uses:
- It will be used, in the first step, for only transactions with the region’s commonwealth nations (friendly neighbours);
- The mining process will be legalized soon;
- A directive setting frameworks and guidelines will be issued by CBI by the end of this month;
In the Market
Stocks ended the controversial week on a modestly lower note, pulling back from their record highs amid continued uncertainty over the future of Iranian economy. The TEDPIX finished with a loss of 0.2% and did close in the lower half of its daily range. Meanwhile, the IFEX rose 0.72% to stands at 1,579.93.
IME pricing schemes talks between the private sector and the ministry of mines and industry are set to resume on next week after the two sides failed to reach an agreement as planned. The negotiations looked promising early week, but appear to have soured since.
The top-weighted Metals sector (-1.09%) finished in the red, with steelmaker giant Isfahan Mubaraka Steel (FOLD, -0.88%) dropped sharply early session yet managed to rise towards the middle. The demand side of metal products sales on IME was stronger than ever which led to a 15% price hike on the exchange. National Copper industries (MSMI, -1.38%) also lost a good chunk of its recent gains today and changed hands for almost 21 mn.
Meanwhile, in the Iron Ore sector (-2.0%), Gol-e-Gohar (GOLG, -3.22%) fell after reaching its technical resistant level. It is safe to say that almost all of the sector’s tickers, except a few micro caps, ended the day in red territory. Falling global commodity prices due to a strong US dollar index pressured the sector even more.
Lastly, the pre-sale automobile sales of two major producers lifted the poor Auto Sector (+1.31%) for a bit after all. The orange giant of the industry, Saipa Co. (SIPA, +0.96%) started the day with good demand volume but despite the fact that its 50,000 vehicles tender sold off in a matter of seconds, the ticker could not hold to its gains and closed at its flatline. Other small names, however, ended the day with moderate orders left in buy queue.
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