Central Bank of Iran Issuing
FX denominated Bonds!
– Following the recent heated demand for foreign exchange in the market and IRR rally to 47,500 level against USD, which was also accompanied by officials warning about risks of speculations, the governor of the Central Bank of Iran announced the issuance of foreign currency bonds in the country within the next 2 weeks to provide those interested with safe options coupled with reasonable yields to dip their foot in the forex market. He, then, added that the National Iranian Oil Company await the reception of permits to issue such bonds as well.
– After the recent release of a new Islamic T-Bill on Iran Fara Bourse on Monday with a 17.5% YTM, concerns have been raised over its impact on moving the interest rates on banking deposits upward in the long run; the rumor has it that such banking rates are dent to rebound in the upcoming future. Referring to ITB’s average YTM of 15% in recent past and explaining the higher yield rates, some experts believe that the recent rally in forex and gold coin parallel markets, which now seem to provide investors with better alternatives, along with their effect in initiating a bullish trend in the housing sector, have the potential to direct liquidity out of banks and towards these fields. As has been mentioned earlier, the CBI obliged banks to set their long-term and short-term interest rates at 15% and 10%, respectively in early September. Below, one can find the latest status of ITB market yield curve:
– Approving the required supervisory regulations, the Money and Credit Council obliged the Ministry of Economic Affairs and Finance to issue mortgage-backed securities in close cooperation with the CBI, the SEO, and the Road and Urban Development.
In the Market
The French Renault Company will resume its activities with Iran Khodro and Saipa in the next Persian calendar year. The Automotive space went through positive trades, with spare part mfg. companies gaining up; these companies are seeking a 30% rise in their products. After a letter was released detailing Iran Khodro block trade specifications, the SEO halted the ticker, rejecting the letter authenticity.
Positive movements were seen in the Metals and Iron Ore industries. Another block trade was done in Esfahan’s Mobarake Steel; 578 mn shares offered at IRR 2,868. Besides, two MoUs have been signed between IMIDRO and several private mining companies for reviving 500 troubled mines in a 5-year period.
Contrary to the growth in global oil prices due to the decline in US crude reserves, nearly the entire Oil Products space finished with slim losses, with Behran Oil going under sales pressure in its final trades. The Oil Industry Investment ticker returned to the market at IRR 1,700, 1.8% higher, after disclosing information regarding the sales of 20% of Ekbatan Gas Company.
Finally, following the disapproval of purchasers of Alborz and Asia Insurance companies’ block shares in the other day, listed on the Insurance group, the blocks are set to be offered on March 3rd. Mihan Insurance eventually received its 87% capital raise permission to reach its capital to IRR 1,500 bn.
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