Iran budget bill of 2017/18; USD/IRR rate of 33,000 and 50$ oil pb!
A IRR 3,200,000 bn general budget bill, raised more than 8% in contrary to 2016/17 act, was presented to the parliament on today’s open session. Development and civil projects’ share is around IRR 600,000 bn stimulating the demand for other sectors. The administration was to fuel IRR 570,000 IRR to the sector on the recent FY, yet H1 figures show that only less than 23%, including T-bills issues, has been realized so far.
Oil revenues are expected to grow over 48% and top IRR 1,100,000 bn, near one-third of the whole Iran budget. The exchange rate is set to 33,000 IRR while currently the street rate hits 38,250 IRR and CBI’s official rate stands at 32,100 IRR. Also it is anticipated for tax revenues to grow 8.7% (IRR 1,120,000 bn).
Security based Istithmar & Ijarah to be on Tehran Stock Exchange soon!
SEO Fiqh council finally accepted securities to be the base of issuing Sukuk. Since shareholders are the joint owners of the company’s assets, then publishing debt securities (Ijarah) backed by the shares they hold, shall subject to no “Sharia” restrictions. Moreover, the issuance of “Istithmar” Sukuk based on the Government shares future interests shall not be inconsistent with Fiqh principles therefore the administration is allowed to write such securities from now on.
Narrow Range Maintained Ahead Majlis session on ISA!
In the Market
The stock market ended today’s affair on a flat note. The TEDPIX surrendered again in the final hours and stood on 80,063.70 (+0.01%) to end just above its flat line. IFB index on the other hand rose 8 points and closed at 838.5
Prior to the open, investors were confused on the political climate and started the market cautiously. Oil related indices climbed through the first two hours of action, but relative strength among the sector was not enough to continue the recent gains. More than 3 mn shares of “PTEH1” traded today and the ticker closed at IRR 3,101 (-2.39%). Near 3 mn shares of “PNBA1” changed hands on the floor made the closing at IRR IRR 4,774 (- 2.19%). Almost all the others followed the trend as well.
The Auto sector widened its recent losses even further, responding to negative news on continuing the JCPoA by both sides. Even the biggest part making joint venture with France could not help the pessimistic look over the industry. “IKCO1” is still on the downward trend for consecutive days. 23.53 mn shares of Iran Khodro traded today and the ticker closed at IRR 2,719 (-1.31).
The metals space spent the day in a slow advance with “FOLD1” being the leader of the new upward trend, according to analysts. The stock settled higher by 1.81% and closed at IRR 1,347. Elsewhere in the sector, other zinc producers announced positive adjustments of their EPS, made most of them to end in green. 1.6 mn shares of “ZAGZ1” changed hands and the stock closed at IRR 8,354 (+1.03%).
Some names in Iron Ore sectors climbed on the earlier rise of global prices. Gol-e-Gohar advanced near 2.5% with high trade volume and closed at IRR 2,226.
Finally, most of the giants in Chemicals, as participants employed caution ahead of a Majlis session today, showed relative weakness despite the recent OPEC decision to cut the production which made oil prices to reach the highs after a long time.
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