The first organized Iranian FX Market finally inaugurates!
Market News
– After months of pointless debates on the formation of an organized official Iranian FX market, where pricing is based on market forces only and all market participant including exchange houses, importer, exporters and retail side demands will be addressed with a fair market mechanism, now unofficial sources have that this market might be inaugurated with the presence of the president himself. Aiming to eliminate unofficial marketplaces for the exchange of foreign currencies, CBI will be in charge of this market while Iran Fara Bourse provides the essential infrastructure.
– Following the recent successful offerings of Islamic Sukuk Securities on Iran Debt Market, this time the SEO has granted its principal consent to Rail Pardaz Seri transportation Co. for the issuance of IRR 1,000 bn worth of Ijarah Sukuk with a nominal yield of 16% and maturity of 5 years. This amount will be dedicated to purchasing of 367 freight wagons and its securities have quarterly coupon payments.
– Iran is to buy raw sugar from India for the first time in 5 years for delivery in months of March and April. Analysts believe that Iran seeks its food safety after the US re-imposed economic sanctions. This trade will be settled in Indian Rupee as it would be a good way to use the Rupee proceeds of oil sale to India. Indian merchants have dedicated 150 metric tonnes of sugar with a unit price of USD 305 to 310.
In the Market
Equities tumbled today as official news have that Iran Expediency Discernment Council once again delayed ratification of FATF related amendments. TEDPIX (-0.56%) fell for almost 1,000 points in a range bound session led by fears of what would happen with FATF, CFT and JCPoA in the new year coming. IFEX (-0.04%) reacted moderately to the news thanks to its giant reopening in the green territory. This is while the parallel investments markets of FX and gold coins, despite their politically sensitive nature, stood almost indifferent towards the news.
Despite all the chitchats, analysts warned before about the super strong technical resistant level of 167K which cannot be easily surpassed. The last night plummet of global crude prices made things worse for sensitive sectors like Oil Products (-1.16%) and Chemicals (-0.68%). But the scope of disaster went further than these two and almost all effective sector ended the day in deep red. Isfahan Mubaraka Steel (FOLD, -2.06%) stamped the highest negative points on the overall index that followed by Gol-e-Gohar (GOLG, –1.44%) and National Copper Industries (MSMI, -1.33%).
Finally, the situation over FX and gold coins markets where calm and following their recent upward trend a corrective phase was not far-fetched. The price of Bahar Azadi coin reached IRR 47,050,000 per unit which shows a substantial loss contrary to its highest price only two days ago.
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