Iran Fara Bourse Offers a New ITB Issue!
Market News
– Today a new issue of Iranian Islamic Treasury bills offered to public on Iran Fara Bourse in an attempt to continue the settlement of Iranian government liabilities with the help of Iran debt market. These securities worth 10,000 bn (cUSD 219.78 mn) and will be matured in two years. “TB181” priced at 772,258 to have a YTM of 16.31% and a BEY of 15.11%.
– Following its recent attempts to approach Iran’s Capital Market closer to international standards, the Securities and Exchange Organization of Iran (SEO) announced the change in equity trades’ settlement and clearing timeframe from T+3 to T+2.
– Stressing on the need to establish sufficient correspondent relations with their foreign peers to pave grounds for foreign exchange rate unification, the governor of the Central Bank of Iran (CBI) said that we should accelerate the process of implementing international standards and linking Iran’s banking system to the international banking network. He also denied any possible relations between the recent USD rally and forex unification.
– Iran placed 27th (among 79) based on the Inclusive Development Index set by the World Economic Forum which assesses how countries (103, 29 advanced and 74 emerging) perform in terms of growth, sustainability and inclusion.
Corporate Earnings
– With its monthly average sales at IRR 203 bn, Saba Nour Industrial & Mineral Development made IRR 344 bn over Dec 2017-Jan 2018; the company has covered 89% of its budget in Q3 ended December 22nd, while it had covered only 47% in the similar period the year before. The company declared an EPS of IRR 138 (56% of its estimate) whereas it had realized only 28% of its projections at the same previous fiscal year.
– Iran Khodro Diesel has made IRR 214 bn of sales over Dec 2017-Jan with its monthly average hovering around IRR 350 bn; the company has covered 32% of its budget in Q3 while it had realized IRR 3.79 bn in the same period last year. However, the 17% fall in sales, the 3% decline in gross profit and the 44% rise in interest expense pushed the company towards recognizing IRR 1,296 loss per share, posting a 24% adverse increase compared to last year’s corresponding period.
In the Market
The petrochemical names in the Chemicals group are still on their ascending trend; as has been said before, the major drivers are the USD/IRR jumps and urea prices liberation.
The Oil Products Industry also managed to finish above their flat lines influenced by the rise in crude price, which now hovers around $70.
The super positive sentiment in the Automotive industry in the previous session has turned into a rather balanced trades, with its leaders ending in the red. Only a few spare part mfg. names, on the other hand, started the session strong.
The Cement space saw a rise in demand with some tickers growing by more than 3%; there are talks on the resumption of cement export to Iraq. The Construction industry settled with balanced trades as well.
The so-called Negative-Beta Sugar industry finished the session with good gains with many jumping more than 3%. The government has been stated to allocate IRR 1760 subsidy per kilogram of sugar, although there are other related issues remaining to be resolved.
On the flip side and over the Agriculture space, Zagros-e Shahr-e Kord Milk and Meat, again faced a buy queue. Talise Nemoune Livestock also managed to jump by 4.4%.
Source:
2018, Iran Fara Bourse Offers a New ITB Issue!, Wednesday, January 24, p.1,<https://agahgroup.com>
