Govt. to ask authorization on debts to settle
Rohani’s administration is to return a deleted note, the debt market missing link, from 2016/17 budget act to the senate floor as an amendment. “It would be possible to clear the current liabilities to banking sector by issuing debt securities” Said Shapour Mohammadi, Deputy Economy Minister while he anticipated an IRR 30,000 bn figure for securities to be issued this year. It is believed that the instruments will be utilized by banks in the following areas:
- As collateral to CBI; (Although there is uncertainties regarding the inflation effects)
- In Interbank market;
- In Debt Market;
“Banks’ capital raisings will be either from translation of CBI’s foreign currency assets or collection of foreign exchange reserves facilities” Shapour Mohammadi continued. It was suggested on the budget act, for government to settle arrears via issuing T-bills and Sukuks, however, the bill did not get passed under the former senate.
“Goharan” went public
Goharan Omid Investment Co. offered 5% of shares today on IFB first market. Analysts anticipated 110-120 IRR will be the matching price, yet eventually the shares priced at 108 IRR. Established on 2005, the company raised capital to IRR 2,000 bn in to steps. With more than IRR 427,000 bn AUM, the company’s portfolio is mostly concentrated on steel stocks.
Omid investment Group Corp. is the sole shareholder of 100% and it is believed that “Goharan” and “Omid investment Bank” will be the executive arms of Bank Sepah in the capital market.
In the Market
The TSE Index tried to hold its ground near yesterday’s closing level, but could not do so, slided to a new low. TEDPIX hovered near 878.60 (-1.19%) and stood on 73,027.90. Much of the weakness was initiated by a rally between TCI and Tamin petrochemical to drag down the index. TCI reopened after a month, announcing DPS approval and fell more than 6% to close at IRR 2050. “Tamin” on the other opened with a lower adjusted EPS. More than 19 mn shares of “Tapico” were traded to make company, the second in place, bringing TEDPIX down.
The Auto sector displayed notable weakness form early session today, and could not keep yesterday’s gains. “Saipa” traded over 95.27 shares, closed at 1,122 IRR and left behind 384,000 sale orders on -5% in the queue. Things around “Khodro”, as for most of the sector tickers, was not better. The auto giant lost 4.41% of the price today and closed at 3,183 IRR. VAMCO on the other hand tried to compensate over the sector yet the force was not impressive.
Oil products ended the session at -1.94% after marking a record low for almost all the tickers. Bandar Abbas oil refinery stood the third on today’s shaky performance list with 53.66 negative points. Low market volume and downward trend in global oil prices, hand in hand with unwilling investors sentiment, made a looser out the sector over the recent months.
After reversing from a morning high, Day Bank marked a lower price than expected. With 12.73 mn shares traded the bank closed at 1,448 to continue the newly started rally, less severe, but titled the sole green ticker of the sector. All the other giants seen bloody trades today.
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