Market News

– Continuing the administration policies with regards to the settlement of its liabilities by issuing Islamic Treasury Bills, two new issues of ITB have been listed on Iran Fara Bourse waiting in line to be offered publically. These issues published on June 10 and 14 by Islamic Republic Government and will be matured in 6 and 7 months respectively. The issue values of these new bills are IRR 33,500,000 mn (USD 757.92 mn) and IRR 35,000,000 mn (USD 833.3 mn) divided into securities with IRR 1,000,00 par. 

– Ministry of Mines and Industry prepared a plan for the direct sale of Petrochemical raw materials to end users and supply chain producers at a subsidized USD/IRR rate of 42,000 if and only if they abide to sell their end products based on this rate. This happened after the IME trades got compromised by dealers who abused the market selling their purchased products right off Iran Mercantile Exchange at a free market FX rate and not end user.

– After its previous round of successful financing, today Isfahan Steel Co. (ESCO) is to issue a new series of Salam Sukuk securities worth IRR 3,000 bn (USD 71.48 mn) on Iran Mercantile Exchange backed by its Iron Beam (size 14) product covering the company working capital need and yields its investors 19% at maturity. The market maker will guarantee the minimum price purchase anytime before maturity which makes the min yield 17.5% per annum.

– In an agreement between the vice-presidency of science and technology and the social security organization, from now on knowledge enterprises are exempted from the payment of contracts insurance policies. Previously these firms should have been paying a 16.67 cut from the contract value under the name of contract’s insurance policy and this new bylaw can reduce their costs significantly. 11th administration as a special eye for the development of alternative investments particularly on the venture capital investment side.

In the Market

Equities ended the day on a remarkably higher note as investors have high profitability anticipations for the stock market. TEDPIX hiked +2.02% on a full-scale bullish trend which carried out the highest trading volume and value since last 2 weeks. IFEX (+1.19%) jumped slower to above 1500 level to record an all-time high in its history.

Today’s trades were mostly dominated by the super optimistic look at the heavy weighted Metal (+3.87%) sector. After the latest directive for the pricing of coloured metals (Copper, Aluminum, Lead, Zinc) at a free market FX rate, almost all the industry tickers finished in deep green. Isfahan Mubaraka Steel (FOLD, +4.67%), the second largest company of Iran Capital Market, placed an astonishing figure of 427.91 positive points on the overall index and changed hands for more than 240 mn shares. Since the participants anticipate that steel will be next in line for a free market FX rate, the demand side was heavily influenced which led orders left in buy queue. National Copper Industries (MSMI, +4.90%) ended the day with a massive 66 mn volume of purchase orders in queue.

Tickers in Chemicals (+1.87%) sector was also highly demanded from the opening bell through the end as its blue-chip, Persian Gulf Petrochemical (PKLJ, +2.42%) reached a new record high for an Iranian company market cap (USD 9.5 bn). However, the situation of the sector was more moderate than in other industries since investors pre-digested a good chunk of its good news.

Reversely, the doomed Auto (-0.33%) sector ended far beneath its flat line since the industry has no sound condition technically and truth be told literally. Big tickers were broadly sold off as no good news have ever come out of the sector and small ones fluctuate in a ranged bound session for the entire session. Unless the conflicts over the auto sale prices get resolved by an act of god, no proper future can be drawn for the industry.

Source:

2018, Fresh Islamic Treasury Bills on Iran Fara Bourse!, Monday, Aug 20, p.1,<https://agahgroup.com>