Market News

– Continuing the stream of Iran’s government overdue liabilities settlement, today a new piece of Islamic Treasury Bills has been offered to public on Iran Fara Bourse. The issued securities worth IRR 17,000 bn (cUSD 373.62 mn) and will be matured in one year. “TB191” price at IRR 864,959 with a YTM and BEY of 17.46% (17.37% commission included) and 16.20% respectively. The below table shows the latest status of Iran’s Debt Market.

– After all disputes over the controversial SEO directive on information disclosure, it seems that the regulator is to make amends for what they are now calling “Management Commentary Reports”. After the SEO’s meeting with Iran’s Capital Market experts, several points of weakness have been recognized which are to be addressed with informative annex forms. These forms have 7 prototypes and will focus on the following criteria:

• Companies’ operational data shall be disclosed either for performance or budget forecasts;
• Forms shall be provided in a way that makes the data comparison with monthly reports available;
• Regarding companies’ investments, only DPS forecasts shall be omitted and all other data shall be provided in said reports as before;
• Regarding the other important information like non-operating data, it shall be possible for the companies to provide their forecasts in form of tables.
• Companies operational data shall be provided as budget forecasts in case of an annual report and shall be provided as the current fiscal year forecasts in case of quarterly and semiannually reports.

– In an interview with Russia Today on Saturday, the Chief of the Securities and Exchange Organization (SEO) of Iran stressed that the Islamic Securitieswill improve transparency in the market and by controlling investment risks, will be attractive among foreign investors as well. He then referred to the role of both Iran Mercantile Exchange as well as financial instruments to better price products and further cooperation between the two in a more transparent environment.

– In a performance report, the Central Bank of Iran enumerated its major actions since the beginning of the current Iranian calendar year started in March 2017, which will be briefly mentioned. This regulatory body managed to lower the interbank interest rate to 18.1%; it, then, was followed by curbing the interest rate on banking deposits to 15% and 10% in the long and short term, respectively. This organization also attempted to help small to medium sized enterprises, aimed at boosting the country’s economy, granting the total amount of IRR 276,000 bn in loans.

In the Market

Following its recent demand rise, Iran Spare Parts Company announced their plan to divest 35.42% of Mashhad Wheel Mfg. Company’s shares through the SEO’s auction; this is being done in line with implementing investments divesture policy. Iran Khodro Investment Development is also planning to divest 14.77% of Mashhad Wheel Mfg. Company in the upcoming future, pushing the ticker into the green in the past sessions. The Automotive industry began the session with much attention directed to the spare parts mfg. companies. Other leaders like Saipa and Iran Khodro went up more than 3% as well.

Following the Automotive space growth, tickers in the Other Financial Intermediaries and Investment spaces went through positive trades with names facing buy queues.

Rather positive atmosphere dominated the Food & Beverages industry led by Pak Dairies (+4.6%); Behnoush-e Iran was another ticker closing with a buy queue. An official announced that negotiations with Iraq to lower dairy products export tariff (recently reached from 10% to 40%) to this country were fruitless.

The majority of names in the Metals space ended above their flat lines influenced by global metal price rise. In its latest report, National Iranian Copper Industries has covered 76% of its budget over the past 10 months, equal to IRR 62,212 bn; the company is expected to surpass its projections with regards to higher than expected copper prices and the continuance of such a growth. An official in IMIDRO said that Iran will gain 2.6% share of global steel sector by 2020 producing 55 mn tons under the country’s 2025 Vision Plan.

Today, the Privatization Organization will offer the 17.3% share block of Alborz Insurance worth IRR 425 bn, equal to more than 694 mn shares with IRR 1630 base price; 30% of this amount will be paid in cash and the rest will be settled in installments within 4 years. It has been heard that Asia Insurance Company’s share block will also be offered tomorrow. Mihan Insurance was the top gainer in the Insurance sector.

Source:

2018, Iran’s Debt Market to Host More Islamic Treasury Bills!, Monday, February 5, p.1,<https://agahgroup.com>