- The approval of the JCPOA at the final moments of today’s trading session contributed to a positive shock in the market, resulting in the price hike of some shares. As financial analysts believe, this agreement has the potential to exert a positive impact on the TEDPIX, leading to a 15-20% rise in prices in the short run and if accompanied by the gradual removal and modification of economic challenges in the society, including the inflation and bank interest rates, it can promise long-term positive changes in the market climate.
- At the end of the week ending October 7, 2015, the overall index registered 109 point decline to stand at 61,390. The first market index reached 42,534 after shedding 231 points or 0.54% while the second market benchmark gained 631 points or 0.46% to end the week at 136,701. In this week, the value of the trades and transactions touched 3,023 IRR bn, remaining the same as that of the last week. Furthermore, 1,724 million shares and rights changed hands in 133,000 times, showing a 9.5% decline and a 5% rise, compared to the week before. In addition, 319,535 bonds and sukuks worth 319 IRR bn were transferred, posting a 21% decrease, in relation with the previous week. In conclusion, sectors such as Tire and Plastic, Tannery, Base Metals, and Iron Ore registered the most positive impact on the industry index by 10.2%, 5.30%, 2.85% and 2.69%, respectively.
SEO announced its agreement for issuance of two different sukuks, namely Istisna’, a contract of exchange with deferred delivery, applied to specified made-to-order items and Ijarah, quite similar to financial leasing in Fara Bourse of Iran. National Industrial and Mining Company will publish Istinsa’ sukuks, amounting to 1,620 IRR bn to construct industrial structures of its concentrate and pellet factories, each having production capacity of 5.2 million annually. These are bearer papers, with yield rate of 23% (payable every quarterly) and 3-year maturity date.
MValue vs. TEDPIX & IFX
Current oil price drop globally and demand fall macro-economically have struck the country on the face, multiplied by sanctions persistence. Controlling inflation rate and reducing uncertainties in the economy plus improving business climate, Rouhani’s government managed to provide the conditions to witness high and stable economic growth. However, the acceleration to this process ceased to continue by the emergence of oil price shocks and demand dramatic reduction. Despite noticeable improving signs in the economy, it is susceptible the disease might take momentum once again.
- Despite the expected statistics, experts believe that Mobin Petrochemical Company might have demonstrated an acceptable performance in the first half of the current year. The company seems to have managed to cover more than 50% of its forecasted EPS over this period. Mobin has been able to cover 25% of its Rial sales in the Q12015 by reducing its costs. Offering services to supply water, electricity, oxygen and nitrogen and filtering industrial water wastes of petrochemical complexes in Asaluyeh, Mobin Petrochemical Company is distinguished from its peers by the ability to supply electricity required by companies in that region. The electricity generated by Mobin enjoys high security level which has contributed to having special customers; this is the reason to its higher electricity price. In fact, this unique feature has created a secure margin for the company which is also strengthened by its proper fundamental situation.
- Today, a special meeting of the parliamentary committee aimed at reviewing the JCPOA, agreed by Iran and the 5+1 governments in Vienna hosted the country’s foreign minister and his team answering questions raised by the parliament members. According to the news, the negotiating team members believed that the meeting has been effective in clearing the ambiguities about the agreement. As a result of the meeting, a bill was proposed on the basis of double-urgency but lawmakers approved it as a single-urgency bill. This bill permits the government to implement the deal based on the Supreme National Security Council resolutions. On July 14th, Iran and 5+1 governments succeeded in finalizing the content of JCPOA under which, limits were agreed to be put on Iran’s nuclear activities in exchange for the removal of all economic and financial bans imposed against the country.
- Tomorrow, Pegah-e Fars Company’s shares will go public. Having predicted its EPS to be 426 IRR, this company could recognize 100 IRR in the first quarter. The intrinsic value of this stock has been calculated to be 6,340 IRR and as experts believe, on the account that most companies in this sector are traded 50% below their intrinsic values, 3,000 IRR price area seems to be the theoretical trade price. On the other hand, since the share’s P/E will be close to 7 at such a price, it would not be a logical suggestion. Furthermore, in order to enjoy a profitable sale, shares are better to be supplied at prices way lower than their intrinsic values; as a result, 2,000-2,400 IRR is estimated to be more appropriate until the shares reach the 3,000 IRR for balance in the mid-term.
Today, the treasury bills, with the ticker Akhza11, were initially offered to investors at an approximate 11% discount par value in Fara Bourse. As a solution to direct wandering capitals to the market, these bills enjoy an interest rate higher than that of paid to bank term deposits at 20%. The minimum volume of the initial offering is determined to be 400,000 bills with the maturity date of March 13, 2016 and according to the authorities, there is no limitation regarding the minimum and maximum purchasing times. Holding the nominal value of 1,000,000 IRR per bill and being cleared and settled by the CSDI in T+1 business days, 383,837 bills were sold at 900,501 IRR at the end of today’s trading session.
Referring to the existing rules and regulations regarding the quality of foreign investment in Iran, SEO’s Deputy for Executive Affairs discussed the methods of attracting foreign capitals. He stated that the limitation regarding the 100% ownership by foreign investors has been removed in some occasions. Insisting on the fact that the most important goal is to boost and reinforce financial institutions from international sources, he continued to say that foreign investment in the country must result in the transfer of technology from advanced financial markets to the domestic ones.