Justice Shares Finally Pays Off!
* The Chief of Privatization Organization of Iran announced that the first part of the Justice Share Scheme profits equal to IRR 12,000 bn will be paid off from today, in a four months period, to shareholders in position of IRR 10,000,000 worth of shares or be of the two low income brackets earlier defined. With 49 companies available in the project portfolio currently, more than 49 mn people will be eligible to receive this profit. The rest will also be settled before the current year ends. According to this scheme, 40% of total value of divestible companies in each market, as the subject of the second law of Principle 138 of the Iranian constitution and Article 9 of the 4th Development Plan, were decided to be allocated to the 6 low-income quartile of the country. In addition, a 50% discount in shares’ prices within a 10-year repayment period, with priority being given to villagers and nomads, was approved for the two lowest brackets.
New corporate Sukuks on Iran Fara Bourse!
* Tejarat Kousha Sepahan, a private joint stock company active in railway transportation, succeeded to surpass the initial stages of issuing corporate Sukuk Istisna on Iran Fara Bourse to cover its IRR 768 mn (cUSD 17.64 mn) need of capitalization providing the company with 300 new Freighter wagons. These new securities have a maturity of 4 years with a nominal rate of 16%.
Iran Banking Sector to Expand Ties
with International Peers!
* Admitting to hurdles with which Iran Banking Sector is faced in actively working with major international players, which have also kept Iranian banks behind their international counterparts, including adhering to Anti-Money Laundering rules and Fighting Terrorism Finance frameworks as well as Basel Committee Standards, Iranian officials have announced the establishment of 800 correspondent banking relations with nearly 300 foreign banks since the JCPOA was struck. With the continuance of similar attempts along with time, the cooperation level is expected to improve.
Banks are no longer allowed to sit as registrar on Iranian mutual funds!
– In an attempt to make amends for Iran’s banking sector, Securities and Exchange Organization of Iran banned banks to act as the registrar of Iranian mutual funds anymore. In this vein, banks and credit institutes whose are already carrying out the registrar spot for mutual funds shall plan for an immediate transfer of the position. The central bank of Iran made clear before that banks are not allowed to issue or redeem mutual funds investment units.
Tehran Stock Exchange All-Share Index
– After a combination of USD/IRR, crude oil and global metal prices rise (mostly arising from OPEC severe control on oil supply and China economic and environmental policies) accompanied by stricter regulations and supervision with regards to lowering interest rate on banking deposits in the country, many are questioning whether this ascending trend of Tehran Stock Exchange will continue in the foreseeable future or not. With the All-Share Index hike over the past 5 months, which benefited investors with a more than 20% return, the Metals space registered a performance of 45%, which followed by the Oil Products space and Iron Ore groups posting 44% and 43% return over the said period; the Chemicals industry also offered an above 35% return. Many believe that a sharp and heavy correction is not expected in the global markets, which multiplied by the expected increasing trend in US dollar price until the end of the current Persian calendar year will keep our hopes up in regard with the market growth. It is worth mentioning that the Automotive and Pharmaceuticals industries are the two lagging behind the TEDPIX, which are usually assumed to experience a relative growth at this time of year when their AGMs are being held.
Central Bank of Iran Picking the Fruit!
– Following the MoU inked between the Central Bank of Iran (CBI) and the Export Insurance Agency of Russia (EXIAR) in October 2017, a finance agreement, with no limit, was signed between 4 Iranian banks, i.e. Bank Sepah, Bank Parsian, Bank Pasargad and Bank Tose’e Saderat (Export Development Bank of Iran) and the Eximbank of Russia on Tuesday in Moscow; this contract seeks the target of facilitating the receipt of banking services for construction projects from Russia.
Iran Banking Sector Restoring Past Links!
– In attempts to internationally integrate Iran banking sector, Iran has entered into talks with Russia testing their banks’ debit card systems; this will enable customers to pay amounts in foreign currency and withdraw the equal amount in IRR. Not only will money transfer problem get solved, this will also develop tourism facilities throughout both countries. Furthermore, over the meeting between Iranian and Pakistani officials, the resumption of banking ties between the two countries were also discussed.
Iran Capital Market YTD Return Placed First
* Stocks accelerating price growth over the past month (22 Nov.- 23 Dec.) put the overall index YTD return at 23.7%, making Iran Capital Market in general and the stock market in specific as the top investment alternative in the country; this growth is mostly attributed to global commodities and Forex price roar; this market has also posted an 11.3% growth over the fall. Although in this regard, the All-Share index registering record highs along with the Central Bank of Iran severe regulation over lowering the interest rate should not be underestimated. All in all, 27 listed sectors experienced growth over the said period led by IT & Communication space (30.1%), followed by Iron Ore, Paper Products and Metals groups with 21.2%, 17.8% and 15.6%, respectively. Chemicals and Oil Products space also posted 7.9% and 6.6% growth as well.