Market News

– Today 10% of Shouyande (detergent) Industry Management Co. (SHOY1) offered to public on Tehran Stock Exchange and 100 mn shares of the company got listed among Chemical tickers. The estimated price range during book building was from IRR 2,600 to IRR 2,730 and finally the ticker priced at IRR 2,730. SHOY1 is a subsidiary of Behshahr Industries holding (TSBE1) with its main focus on detergent production. The company’s sales are expected to rise 30% in upcoming year despite the surge of its revenues by 11%. The forecasted EPS for FY2018/19 is IRR 420 which make the P/E ratio 6.4.

– The Oil Industry Investment (NAFT1), informed the Securities and Exchange Organization of Iran via a formal letter of its plan to offer 20% of Ekbatan Gas Company, as the 17^th company listed in Iran SME market on Iran Fara Bourse. Its financial effects, which made the ticker to become halted, will be consequently disclosed.

– According to the Central Bank of Iran’s (CBI) latest statistics, 155 branches (part of Banks’ frozen assets) have been closed for the number of active bank branches across the country to stand at 23,075. Over the recent years mushroom-like growth of Iranian Banks’ branches has caused them liquidity problems since the acquired lands have seen deep recession.

– The governor of the CBI announced this body’s readiness to grant facilities to renovate the transportation system in the country, despite the current limitations; half of the funds will come from domestic IRR sources and the rest will be provided from foreign currencies’ resources where credit finance will also be available for. Not to say that oil & gas revenues are going to have a share in such loans.

– Aimed at supporting the private sector business as well as promoting trade with Latin America nations, the current Iran-Venezuela Bi-National Bank (established in 2010) is planned to turn into Iran-Latin America Bank; in this regards, negotiations are under way with countries in the region, including Brazil. The idea behind this attempt came after the need for creating a rainy day fund for the private sector was addressed by the Head of the Iran Chamber of Commerce, Industries, Mines and Agriculture; it was then, cultivated and transformed into revamping the said bank to help this sector instead, proposed by the Minister of Economic Affairs and Finance.

– The CEO of Iran Air, Mrs. Farzaneh Sharafbafi announced Italian and French plane makers’ readiness to provide Iran with two credit lines, which is planned to be used to purchase new Airbus and ATR air-crafts.

In the Market

The sharp fall in global exchanges along with the relative decline in USD value have raised concerns among investors, although today’s IPO added to the sales pressure in the market to some extent as well.

The IRR continued to fall to record its lowest low against USD on Sunday surpassing the 47,000 channel in the free market, losing 1.15% of its value. On Monday, however, the USD experienced its least volatile day in Bahman month (Jan-Feb) mostly due to 4 different factors of: the market maker FX supply, some derivate day traders leaving the market, the drop in UAE dirham order, and changes in market expectations. These dragged the USD even in unofficial market down from the 47,000 level.

Having IRR 1,300 bn in capital and listed on Iran Fara Bourse, Sobhan Investment Company, listed on the Investment industry, started the session with a buy queue; this occurred after Kosar Economic Organization announced it will divest 1.1 bn shares of this company, 90.8%, at IRR 2,376 as base price and total value of IRR 2,805 bn on February 28^th. On the other hand, Saipa Investment was dragged into the red zone following the Automotive space negative trades.

Despite early positive sentiment in the Automotive group caused by spare part mfg. names, it did not last long. Following its information disclosure due to its 20% continuous growth in 4 sessions, Mashhad Wheel Mfg. ticker returned to the market going up 10% at IRR 1,015.

Mihan Insurance saw demand rise among names in the Insurance sector; the company announced its plan to raise capital by 87% relying on shareholders’ paid in capital and claims due. As was said in yesterday report, Alborz Insurance share block was planned to take place on Monday, which did not, since the purchaser’s competence was disapproved by the SEO. For the same reason, Asia share block trade was not conducted today.

Source:

2018, SHOY1 Went Public on Iran Fara Bourse!!, Tusday, February 6, p.1,<https://agahgroup.com>