- In a meeting between Dr. Fetanat and the England embassy consular, both parties insisted on the importance of bilateral collaboration between Iran’s capital market and London Bourse, expressing hopes over the facilitation of foreign investment process in the country. Explaining Iran’s capital market capacities and opportunities, Dr. Fetanat addressed the conducted attempts aiming at increasing transparency in the market and the dominance of international financial and accounting standards on the listed companies. He also mentioned the attempts to establish cooperation with international credit rating agencies, including Fitch Company. In response, referring to England’s experience and background in using financial instruments such as futures and option, the British authority announced England’s readiness and interest in sharing their accomplishments in establishing an exchange currency bourse in the country.
On the second Europe-Iran Conference, held in Geneva on Thursday the potential investment opportunities were explored and discussed in the post-sanctions era by both sides. According to participants in the forum, beside its above 80 million people population and large natural resources reserves, Iran has been occasionally reported to be the biggest country to enter the global financial system since the breakup of the Soviet Union. At the moment, most foreign companies are waiting for the final implementation of the JCPOA early next year and Iran’s re-connection to global networks, notably SWIFT in order to start transferring their funds to the country.
IFB’s CEO announced first-ever treasury notes are planned to be offered within the coming week, adding that it is a kind of new financial instrument aimed at settling government’s long-awaited debt with private contractors. He further remarked that the Treasury’s price will be discovered in the normal trading sessions via supply and demand mechanism. Being guaranteed by the government, the objective of issuing such type of securities is to form financial discipline in Islamic treasury notes under the banner of modern financial instruments on IFB to clear debts owed by the government.
Petrochemical products’ getting off the IME’s screen will not happen; the exchange market is the most transparent place to trade petrochemical and other commodities, said Soltani Nejad, IME’s CEO. He also added that trading commodities out of the exchange market framework will be accompanied with product delivery risks. Citing the fact that Iran is one of the commodity pricing references in the world, he stated that since Iran enjoys relative advantages in petrochemical industry and oil products, it can act as a proper reference for legislation and pricing such commodities. He also insisted on the fact that the reported exit might be equal to retreating from the international capital markets and thus, it is absurd to turn back to the old and unclear billing system.
In a meeting with SEO’s CEO, South Africa’s Stock Exchange Regulatory Chief Officer expressed hope over the expansion of cooperation between the two countries’ Stock Exchanges. Consequently, signing a cooperation agreement between the two regulatory organizations was proposed aiming to implement joint projects. Calling Iran’s Islamic Capital market along with the available instruments a successful sample in the world, he hoped to see more ties between the two markets in terms of brokerage firms, investment funds, and depository companies. At the end, Dr. Fetanat invited him to participate in the Foreign Investment Conference in Iran in December.
According to chemicals sector experts, this market has been in need of demand boost which was realized having removed the yearly upper limits; this trend was strengthened by dollar price spike contributing to the trade volume increase, which altogether have drifted this industry away from the prevailing recession to some extent in the last week. Relying on market watchers, the present time seems to be proper to take long positions on these products as a result of which more demand and trade volume are predicted in the current week.
Damavand Power Generation Management Company, a company in the utilities sector and with the ticker BDMZ, as the largest electricity supplier in the Middle East and second company in this category being quoted on IFB after Bargh Mapna is ready for an IPO of about 10 percent of its shares. Company’s capital stands at $13.4 mn and intends to conduct a capital raise up to $146.2 mn from either financing through claims due from the government or retained profits or both after public offering performance of the company.
Pardis Housing Investment Company belongs to the Housing Investment Company. Established in April 2006 in Tehran, this company focused mainly on designing, offering consultancy, technical and engineering services and implementing mass construction projects. Its projects fall within the categories of participatory, contracting, and investment projects. Based on the latest statistics and possessing 300 IRR bn capital, this company considered 1,027 IRR EPS for the fiscal year ending September 22, 2015. During the last 3 years, it has had 6% positive deviation in sales and 5% positive deviation in final costs; experts believe that Pardis’ sales margin has been bullish. Taking the company’s main project types into account, experts agree that their valuation has its own complexities and it is not possible to do that based on NAV; the intrinsic value of each share, therefore, was estimated to be 5700 IRR according to the company’s cash flow. Today, 10% of this company’s stock was offered in the market to be traded at 5400 IRR.
In “IFN Issuers Forum 2015” held in Dubai, the head of Securities and Exchange Organization stated that as a result of the nuclear deal, delegations at presidential and ministerial levels paid several visits to Iran’s capital market aiming to investigate the potential business opportunities and prospects, as Iran has been placed among the top 10 fastest growing economies in the world due to statistics and analyses conducted by domestic and foreign research centers. Introducing Iran’s capital market to the audience, Dr. Fetanat added that SEO is intended to develop relevant regulations to facilitate foreign investment process by collaborating and cooperating with domestic and international credit-rating agencies. In the end, he referred to an international conference in the upcoming year with foreign investors and market activists’ attendance to scrutinize the opportunities surfaced in the post-sanction era.
Liquidity crisis has been continuously cited by market activists and analysts as number one challenge with which our capital market is wrestling. Market experts believe that uprooting recession in true sense of the word could encourage and stimulate the skeptical to bring their capitals into the market, contemplating that transparency in industry-related decisions is one of the ways to absorb liquidity and boost the market. Economic viewers are of the opinion that ambiguities regarding the listed sectors shall be removed and the transparency level in state decisions influencing the stock market should increase for which designing long term rules and regulations is a pre-requisite.