Will Iran Economy See Forex Unification?
Market News
– Referring to the problems caused by the difference between the US dollar prices in the official and the free markets, the head of Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA) criticized the proposed USD/IRR at 35,000 in Iran budget bill for 2018/19, which might neutralize the government efforts in gradually raising the US dollar price in the official market in the past few months; current us dollar price has surpassed IRR 42000 in the free market. He called for stricter measures in order to make foreign exchange rate unification process in Iran Economy happen.
– Referring to negotiations with major international insurance companies ready for investment in Iran, the head of Central Insurance of Iran announced two Italian and German companies’ interest in purchasing shares of Iranian insurance companies. He also added that they are expanding business ties with foreign reinsurers, mostly from UK, France, Italy and Switzerland, to cover catastrophic losses.
– After launching a direct shipping route from Shahid Rajaee Port in Iran to Sohar Port in Oman in February, a new route from Chabahar Port to the Sohar Port is also planned to be launched at the end of December.
In the Market
Considering the recent value and volume of trades, we have been witnessing the entrance of fresh liquidity into the market, which was mostly attributable to the roar of global metal prices; this resulted in the All-Share Index advance into new record highs.
Names in the Oil Products group settled with slim gains, led by Bandar Abbas Oil Refining (PNBA1). After a 76% positive adjustment, Shiraz Oil Refining (PRZZ1) ticker returned to the market at IRR 14,850, 5.4% higher; Esfahan Oil Refining (PNES1) ticker was also reopened at IRR 4590 going up 5.5%. Besides, in cooperation with Petronas Company, Iranol Company managed to produce ship lubricants respecting international standards.
In tandem with growth in global metal prices, the majority of names in the Metals and Iron Ore groups went under positive and high volume trades.
A great number of names in the Automotive space went through balanced trades. An official in Iran Khodro (IKCO1, +1%) announced they are finalizing the agreement to produce E-class Benz vehicles in the near futures. Furthermore, the rumour has it that a group of spare part mfg. companies are planning to purchase a block share of Samand Company, as a subsidiary of Iran Khodro. The Minister of Mines and Trades also stressed on the government’s divesting its shares in Iran Khodro and Saipa as well.
An official in Barez Industrial Group (BARZ1, +4.7%) listed on the Rubber and Plastic group announced that they have become the sole provider of tires for the vehicles produced by Renault Company in Iran.
Pursuing the goal of getting rid of their excess assets in the Banking space, Bank Mellat’s CEO stated that they are planning to divest their 20% share in Asia Insurance Company.
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