Market News

– After the previous successful underwriting of IRR 4,500 bn (USD 107.14 mn) worth Sukuk Ijarah for Iran Telecommunication Company, a new round of corporate Sukuk Ijarah (equity backed) now worth IRR 8,000 bn (USD 190 mn) is to be published on Tehran Stock Exchange. The underlying asset of this new issue is 567,818,866 shares of HMRZ1 priced at IRR 14,089 apiece. The yield would be 16%, payments scheduled for every 3 months (quarterly) and these securities will be matured in 4 years.

– Following the US government pullout from the JCPoA, the European Commission announced their attempts to protect European businesses in Iran by preparing a sanction blocking mechanism. This commission stated the launching of a Blocking Statue, which allows companies to recover damages arising from such sanctions along with nullifying the effect in the EU of any foreign court judgements based on them. The commission added that this mechanism will come into force within 2 months. Moreover, there are attempts to establish a banking channel to make money transactions as well companies operation free from US sanctions between Iran and Europe possible.

In the Market

Stocks were stronger today, hiking for another consecutive session mostly thanks to mayhems in the global crude market. The TEDPIX and IFEX ended with gains of 0.17% and 0.80%, respectively.

Influenced by the $80 oil, the entire Oil Products space were highly demanded with Lavan and Shiraz Oil Refining hitting their highs. Esfahan Oil Refining has made IRR 879 EPS in the FY ended 20 March, which proves a 53% growth in comparison with the year before; the company has also covered 98% of its estimates.

The Automotive industry also finished in the green. Contrary to the US government decision to exit the JCPOA, French automakers’ interests are planned to be protected by the EU.

The Chemicals sector settled with balanced trades, although Shouyande (detergent) Industry Management Company and Saina Hygienic Company grew by 4%. After its AGM, where IRR 7,400 DPS were distributed among shareholders, Zagros Petrochemical returned to the market at IRR 29,440, 4% higher.

Except from a few names like Navard Aluminum and Zangan Zinc Industries, the rest of the Metals industry settled with slim gains. Despite a rising start, the Iron Ore space shed their prices, led by Mines & Metals Development.

Eventually, in line with the recently seen sentiment, the Construction and Cement groups finished above their flat lines, with many touching their ceilings.

Source:

2018, “Equity backed” Sukuk Ijarah now on Tehran Stock Exchange!, Saturday,May 19, p.1,<https://agahgroup.com>