Market News

– Securities and Exchange Organization of Iran has granted Rayan Saipa Leasing co. (a subsidiary of Saipa automaker) its principal consent with regards to the issuance of a new corporate Sukuk Musharaka financing its leasing facilities in Iran Leasing Sector. These securities will yield 16% annually and have 4-year maturity with quarterly coupon payments. The total issue size is IRR 1,500,000 mn (USD 35.71 mn) which Saman Bank guarantees its principal and instalments. 

– The central bank of Iran announced that considering the maturity of 20% bank deposits which were opened during Aug/Sep 2017 is closing soon, the depositors who are willing can extend their account for an additional 1 month. The said interest rate was approved under the CBI’s rescue package for a limited time and with the aim of controlling the unleashed money supply of the nation which by the way analysts believed that unless tamed accordingly can bring unstoppable fire again to all markets.

– Reported from an official in the parliament industry commission, on their today’s meeting it was decided that auto part makers are allowed to a subsidized FX rate of USD/IRR 42,000 for their imports. After the new directive of CBI excluding auto parts from the official currency rate, there were huge impacts on automakers day to day operation. Moreover, the National Competition Council announced a price jump of around 17% in auto sales prices. Two news together, it could make a huge difference. positively, in the auto sector profitability.

– In its latest report on brokerage industry, the securities and exchange brokers association (SEBA) did a deep analysis of Iran brokerage houses considering factors like the number of employees, their education level, work experience and most importantly the brokerage houses capital. The below chart demonstrates the growth of Iranian brokerage firms capital in a five-year period.

In the Market

The TEDIX (-0.12%) was short for an advanced today and closed a tick lower on a session that can only be called as pure moderation. Approaching the last summer vacation period, forces were balanced on the trading floor lightly in favour of the supply side. IFEX (-0.16%) started an upbeat session yet for the same reasons on TSE could not hold its grounds through the ending bell.

Vague news on the future of Iran Mercantile Exchange pricing methods for Metal products weighted in and made investors shady on the base FX rate which they should use in companies’ earning evaluation. However, better than expected news on the auto sector developments addressing its latest issues was in favour of the industry trades.

Components of Metals (-0.86%) were on two different sides of the spectrum. On one side, price hikes in the global copper market were in favour ofNational Copper industries (MSMI, +2.59%), which changed hands for almost 80 mn shares, yet indecisive decision making of steelmakers officials made the Isfahan Mubaraka Steel (FOLD, -2.05%) to be on the other end for almost the entire session.

Finally, the optimism of a higher oil price in the global market made the tickers of Oil Products (+2.79) golden in today’s session. Most of the shares started the day with demand flooded from their buy queues, however, the general status of the market forced them to close moderately higher. Isfahan Oil Refinery (PNES, +4.24%) was the leader of today’s bullish rally followed by Tehran Oil Refinery (PTEH, +4.49%) next in line.

Source:

2018, Corporate Sukuk Musharaka to finance Iran Leasing Sector!, Tuesday, Aug 21, p.1,<https://agahgroup.com>