Market News

– Iran Social Security Organization is to issue new equity backed Ijarah Islamic Sukuk Securities on Iran Fara Bourse and the underwriting process begins Aug 14 (tomorrow) for a period of three business days. These new securities worth IRR 12,000 bn (USD 285 mn) have an annual coupon rate of 19%, a maturity of 36 months and semi-annual coupon payments. The collateral to this issue will be 8,670,520,231 shares of Tamin Petrochemical Co. at IRR 1,384 per share. Book runners and market makers are according to the below table:

– After the administration’s decision to clear a huge part of its debt to contractors and other entities by the issuance of Islamic Treasury Bills said creditors were allowed to trade their dedicated ITB securities on Iran Fara Bourse in order to monetize their claims. In that regard, Social Security Organization is to offer 15 issues of its debt securities to the public tomorrow according to the below table:

– CEO of Persian Gulf Petrochemical company announced that by the end of the current year, 1397, the largest aromatic producer petrochemical company of the world, which happened to be Iranian and its subsidiary, will be offered to the public on Iran Stock Exchange. Noori Petrochemical Co. (listed on Iran Fara Bourse as NURZ1) has IRR 3,000 bn in the nominal capital and for the previous FY made IRR 5,113 EPS. The company is located on Asalouyeh port and produces 4.5 million metric tonnes of aromatic substances per year.

In the Market

Equities ended today on a largely lower note as indecisive decisions of administration with regards to pricing of metallic, petrochemical an iron ore products on Iran Mercantile Exchange continues. TEDPIX (-1.06%) shed more than 1,300 points and closed at 128,522.72 level. IFEX (-0.55%) almost gave out all its other day’s gains as well and settled at 1,483.30.

Today investors reacted to the news on the mechanism of IME trades pricing which affects the commodity-based sectors at large. It seems that the ministry of industry and mines are to cap the prices in order to minimize the inflationary effect of a free market FX rate dominating Iran economy these days. As almost all market participants agree that commodity prices shall be with regards to a pure supply-demand scheme, yet the officials insist on meddling with prices in a bad way.

Today’s bearish rally led by giant steel makers which made a really sad day for Metal (-2.37%) sector. Isfahan Mubaraka Steel (FOLD, -2.91%)and National Copper Industries (MSMI, -3.3%) were the flagbearers today placed -266.94 and 190.0 negative points on the overall index respectively. Despite the better than expected trades through the closing bell, the majority of names ended the day in the red.

Chemicals (-2.01%) was next in line in terms of bad performance as the government decisions hurt the sector the most. In addition to their products selling prices, their feedstock shall also be calculated with regards to an FX rate reference, either official or market rate. Persian Gulf Petrochemical (PKLJ, -1.89%) changed hands for almost 5 mn shares and had a hand in today’s disappointing performance of the market by 188.43 negative points.

In general, until some more explanations publish by officials on their FX decisions and the spectrum that free market FX rate will cover the market will experience more ranged bound session in coming weeks.

Source:

2018, Iran Social Security to issue new Islamic Sukuk Securities!, Monday, Aug 13, p.1,<https://agahgroup.com>