Market News

– Koroush food industries is to issue Corporate Sukuk Murabaha, on Iran Fara Bourse, worth IRR 500 bn (cUSD 10.98 mn) to cover its financing needs. Reporting from capital market news agency, the SEO granted its principal consent for the company to IPO new debt securities for the purchase of raw materials (Sunflower raw oil). This new issue has a nominal yield of 16% and will be matured in 2 years with quarterly coupon payments. Bank Mellat will act as the guarantor and Mellat investment bank is going to be the market maker.

– Aiming at bolstering its trades with Iran and increasing its goods and services export to the country, the state-run French BPI-France Investment Bank announced the offering of euro-denominated credit worth nearly 1.5 bn to Iranian buyers as soon as May or June. It is worth mentioning that an agreement was made between Iran and Italy in early January for funding investments in Iran worth 5 bn euro.

– Announcing the Producer Price Index of the Industry sector over Fall 2017/18 to stand at 242.7, the Statistical Center of Iran put the producer inflation rate at 12.7%, which shows a 10.2% rise in comparison with the 4 seasons ended Summer 2017/18. The calculated figure also posts a 9% an d18.3% rise compared with rates in the previous season and similar season in the prior year, respectively.

– In its outlook on Iran’s Economy, the United Nations announced a 5.3% growth in Iran over 2018/19 as the result of improvements in oil and gas export in 2016 and 2017 plus adopting appropriate monetary policies following the JCPOA struck.

In the Market

In line with the decline in global commodity prices, a rather negative sentiment dominated the Metals industry. Except from a few tickers touching their highs, including National Iranian Lead and Zinc, the rest settled with losses. Following President Rouhani trip to Kerman, projects of the National Iranian Copper Industries Company (-1%) worth more than IRR 3500 were inaugurated.

The Iron Ore space also finished the day with balanced to negative trades. With the Minister of Industry, Mine and Trades present, 2 major projects were inaugurated in Chadormalu Mining & Industrial Company today; one project is the steel company with 1.3 mn ton capacity. Materializing IRR 434 EPS over its Q3 period, Gol-e Gohar Mining & Industrial managed to cover 67% of its latest budget, while it had recognized 58% in the same period last year.

After the significant rise in Electric Khodro Sharq Company in the Automotive industry, its major shareholder, i.e. Iran Spare Parts (GHAT1) faced a buy queue for the third consecutive session. Iran Ring, as GHAT1’s subsidiary also went through high volume trades. Iran Khodro and Iran Khodro Investment Development has been falling since their block trade on Wednesday was postponed.

Following an MoU signed between the Ministry of Health and Medical Education and distributer companies like Qasem Iran, listed on the Retailers and Distribution group, companies’ claims were set to be settled both in cash (50%) and through issuing bonds.

The Food & Beverages sector also saw a rise in demand. Dairy products export value has experienced a 31% growth in the first 8-months of the current year, while its volume posts a 3% decline.

Source:

2018, Corporate Sukuk on Iran Fara Bourse to Finance Food Industry!, Saturday, February 3, p.1,<https://agahgroup.com>