Market News

– With the issuance of new Islamic T-bills series’ last piece tomorrow on Iran Debt Market, the composition of Iranian government debt securities gets more diverse and considering the yields, the market is now more attractive than ever. “TB301” is worth IRR 15,246.43 bn (USD 355.415 mn) and will be matured on 18 August 2020. Speculation on the prices and correspondent yields can be found on the below table:

Moreover, with the recent rallies happened in all markets the risk-free rates jumped to new record highs and ITBs are not separate. Analyzing the price data shows that YTMs of Islamic treasury bills now reach to +26% level on some issues. The below chart is the yield curve as of Jul 07, 2018.

In the Market

With the TEDPIX gaining 1% over the past week, the stock market has now benefited shareholders with a 17% return since the beginning of the current year; in fact, despite a correction phase started earlier following the recent price hike as well as concerns over the upcoming sanctions, the hope from the EU proposal with regards to the JCPOA along with a serious determination among officials to launch the secondary forex market managed to direct the market trend upwards.

Unlike the heavy sales pressure in the Metals and Iron Ore groups, the Automotive industry (led by Saipa) managed to mostly end in the green; although it failed to keep all its early gains through the closing bell.

While the rumor has it that production units in Chadormalu Mining and Industrial Company have been shut down due to water and electricity deficit, a company official rejected the talks and added that the company has built a 500 MW power plant in the past years, which is not only able to meet its own needs, it also can transfer its excess to the national power grid of the country.

The negative sentiment of the market spread to the Oil Products and Chemicals groups as well.

The Computer space went through rather balanced trades with Iran Arqam as its top gainer (+4%); Asan Pardakht-e Persian is planning to raise its capital by 50% to increase it from IRR 2000 bn to IRR 3000 bn; it aims at its capital restructuring and improving financial ratios as well as providing the required working capital to purchase Points of Sales.

San’at va Ma’dan Leasing Company also seeks the 100% capital raise program relying on its shareholders’ claims, paid-in capital and retained earnings to reach from IRR 2000 bn to IRR 4000 bn; this plan also aims at maintaining the company’s capital following the recent macroeconomic fluctuations along with reducing the company’s risk. The ticker, listed on the Other Financial Intermediaries space went up by 4.9%. In today’s session, this sector was highly demanded.

Finally, following the buy queue on Bank Saderat buy queue, other names in the Banking group went through positive trades as well.

Source:

2018, Iran Debt Market gets more attractive!, Saturday, July 07, p.1,<https://agahgroup.com>