Iran oil sector to finance by Islamic Sukuk Securities!
– Securities and Exchange Organization gave the green light on the issuance of a new round of Sukuk Al-Intifa’a for a private corporation active in Iran oil sector. Saba Arvand Oil & Gas Development Co. will issue these securities backing up by 4 years of oil sales proceeds over 11 rigs. The nominal yield is 19%, the coupon payments are semi-annually and this issue will be matured in 3 years. A consortium consists of several investments banks (Tamadon, Lotus, Mellat, Omid, Kardan, Amin and Novin) will be the underwriters and also market makers to these new securities worth USD 86.95 mn (USD/IRR 115,000).
– On February 04, 2019, NICO is to offer the fourth batch of Iranian oil on the energy exchange. Despite the failed offering of last week (3rd batch), the national oil company is to sell 1 mn barrels of its crude with a base price of $56.24 per barrel (up by 4 dollars contrary to the previous offering). The shipment will be on Feb 20 FOB on Kharg Island.
– International news agencies claimed that today the Europe Union will finally announce the inauguration of its promised Iran related SPV. Having been sitting on its hands to hear all kinds of rumours on that regards for months, Iranian officials stated no commentary until after the official announcement. The pragmatic details of such structure have can massively impact on any Iran related businesses while its psychological effects can push the current cloudy situation over.
In the Market
Equities lost today widely to continue their trend less path once again as the weight of political risks and its doubts shattered the whole market picture. TEDPIX (-0.60%) lost almost 1,000 points and stood above 160K level while IFEX (-1.77%) was hit even harder and closed at the edge of 1,900 level. Technical analyses suggest the 155K area as a strong support level for the overall index with upsides of 167K and 173K respectively.
Despite the recent cash injections to the market by the retail side, the most destructive catalysts behind these days volatile sessions are the lack of string funds to make a trend and market participants indifference towards off the charts monthly performance reports mostly. It seems that the imprisoned cash in two sectors of Banking (-1.88%) and Auto (+1.40%) have locked the trades in other sectors and neither they will let go nor they have what it takes to make a bullish trend.
It is like an amalgam of fear, indecision and excitement holds back the investors to take a hard and long-term look at the market. Despite the extraordinary performance of the capital market just until months ago, these days situation disappoints market participants in every way possible. The dark outlook of Iran Economy in coming years until 1400 adds up to this viewpoint and made things even worse in all investment markets of the nation.
It seems that investors have their eyes on the coming week political news of the long-awaited SPV and the momentum it could cause for all markets.
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