Market News

– Iranian food industry is to utilize the capacity of Iran Capital Market covering its financing needs by issuing Islamic Corporate Sukuks. Tomorrow, Kourosh food industry co. (a private joint stock firm) will publish IRR 500 bn (USD 11.8 mn) worth of Murabaha Sukuks on Iran Fara Bourse. The securities are going to be mature in 2 years and have an annual yield of 16%. Mellat Investment Bank is the underwriter and book runner of these securities while Mellat Bank will act as the guarantor to this issue.

– Following a highly requested (by public) transparency policy, the central bank of Iran announced the names of all firms who allocated subsidized USD currency (USD/IRR 42,000) after the FX unification scheme. This happened by the direct order of President Rouhani to meet the public demands. Although the list contains 1,500 names that applied for import currency to the ministry of Industry, mine and trade and does not include all importers, however, it was a bold move from the administration to calm the economic mayhem of recent months.

– Considering the current turmoil on Iranian gold coins’ market, the CBI hands in hand with SEO has decided on a new scheme to maintain the situation. From today on, all the pre-sale Bahar Azadi coins can be traded on Tehran Stock Exchange via their tradable remittance orders. Policymakers hope for the new framework to meet the never-ending thirst of the market and reduce the size of the demand side for gold coins as well. These remittance orders can be turned to “physical commodity” on their due date.

In the Market

Stocks got off to a bad start on today’s session and gave back nearly everything they got on the previous week during the final hour of trading. The TEDPIX ended with a loss of more than 0.5%, closing a tick below its 7-day moving average. The IFEX also lost  -2.9%.

Metals (-4.05%) led the market lower out of the gate after the future of FX secondary market went into shades with officials taking inconsistent decisions on a daily basis. The heavily-weighted sector faded as the day went along with massive sale pressure and more than 275 mn traded shares. Isfahan Mubaraka Steel (FOLD, -4.32%) was the biggest loser today posting 342.07 negative points on the overall index. Followed by that, placed National Copper Industries (MSMI, -4.67%) which after the global prices fall went south rapidly.

Iron Ore (-2.84%) was the second worst-performing space as prices reached their strong technical resistant levels. Giants like Chador Malou (CHML1, -4.74%) traded heavily on the negative area and ended the day with orders left in buy queue. All of the other names in the sector finished in deep red throughout the ending bell.

The future of political situation along with crucial coming changes in the cabinet weighed at the start of the week due to reports that the administration is looking to make the economic loop even tighter than before. It seems we have to sit and wait for the future to see whether if hard economic decisions are going to be made for a better capital market or not.

Source:

2018, Iran Food Industry benefits from Islamic Corporate Sukuks!, Sunday, July 01, p.1,<https://agahgroup.com>