Iran Budget Bill Outlines on Agenda!
Market News
– Submitted to the parliament on December 10th, the outlines of Iran Budget Bill for 2018/19 were discussed in the Majlis open session and disapproved with 120 lawmakers against it on Saturday. The Joint Commission, as the responsible body for reviewing the bill, has now been given 72 hours to apply the required changes. The next session will be held on February 3rd.
– In order to meet its working capital needs and also to participate in the company’s capitalization, Gol-e-Gohar miming and industry Co. is to issue IRR 3,000 bn (cUSD 66.22 mn) Corporate Sukuk Ijara on Tehran Stock Exchange. The new Iranian debt securities have a maturity of 4 years with quarterly coupon payments. With this issue, total figure of outstanding debt securities in Iran’s capital market, offered to public from the current Persian calendar year start, will reach IRR 293,000 bn (cUSD 6.48bn) showing 48% rise contrary to previous year.
– Bandar Emam petrochemical is to issue Sukuk Salam securities on Iran Energy Exchange financing its LPG projects. These parallel Salam securities worth IRR 4,000 bn (cUSD 88.5 mn) with a nominal yield of at least 17.5% per annum and no periodic coupon payments. The strike price on its underlying asset embedded buy option will be the underlying asset base price on IPO date plus a 18% annual equivalent yield and the strike figure for embedded put option is set to be the underlying asset base price on IPO date plus a 17.5% annual equivalent return.
In the Market
The jump in metals, specifically zinc, prices in global markets pushed the majority of symbols in the Metals and Iron Ore spaces into the green zone, leaving many with buy queues.
According to the recent rule in the stock market on halting companies’ tickers after a 20% growth in 5 consecutive sessions, aimed for companies to announce the reasons behind such a rise, Iran Pipe and Machinery Mfg. company returned to the market 10% higher at IRR 5,775. The company has managed to cover 105% of its operating profit over the 9-month ended December 21st, due to the rise in production and sales as well as the fall in the CoGS; this was accompanied by the 112% coverage of interest expenses as the result of its claims’ settlement from the Water & Wastewater Treatment Organization.
The positive sentiment in the commodity based sectors resulted in the money flight from other fields, including the Automotive industry; among the few positive names were Electric Khodro Sharq and Iran Tractor Forging, touching their ceilings.
After a nearly sharp growth among many names, mostly petrochemical companies, in the Chemicals space influenced by USD rally and urea price liberation, the whole space settled with rather negative trades. Farabi Petrochemical and Pars International Products, however, hit their highs.
Apart from a few like Saman Insurance and Amin Re-Insurance companies in the Insurance and Pension Fund group facing high demand, the rest settled with slim losses. While announcing its 145% capital raise plan on August 9th, which was rejected by the SEO, Dana Insurance re-submitted its 47% capital raise plan on October 21st based on shareholders’ paid-in capital, which was accepted and has been heard to be issued soon; besides, 9.5 mn shares of this company were block traded at IRR 2,805 per share.
Source:
2018, Iran Budget Bill Outlines on Agenda!, Monday, January 29, p.1,<https://agahgroup.com>
