Iran Social Security issues
the first equity backed Sukuk Ijarah!
– In an attempt to utilize the capacities of Iran’s Debt Market, Social Security Organization of Iran is to issue IRR 10,000 bn (cUSD 223.46 mn) worth of Sukuk Ijarah with a nominal rate of 20%, the maturity of 1 year and semi-annual coupon payments. The underlying asset is, for the first time, 7.89% of “PTAP1″ shares priced at IRR 1,266 per share. Bank Refah will act as the guarantor of this securities paying the principal and interest in case of default.
– In his meeting with banks chief executives, the governor of the Central Bank of Iran urged banks to establish strong compliance units and implementing anti-money laundering and fighting terrorism standards. This shall be done to meet the requirements of the FATF action plan, which has given the country time up to June to complete its measures to stay out of this body’s black list.
– Secondary trades of “Zarafshan Omid” ETC, better known as the second Iranian commodity based mutual fund, is now available on Iran Mercantile Exchange. “ZARF1” units were underwritten on Sep-Oct 2017 with a great interest from investors. Over 5 business days, an IRR 120 bn (cUSD 2.70 mn) figure of its units were sold to more than 5,000 individual and institutions.
In the Market
Stocks declined on today’s session, fall steadily over the course of the session, as investors are pessimistic towards the future of Iran Capital Market now the risk free rates are back to +20% area. The TEDPIX crashed for -0.27% to finish at a new low (96,594.52). Meanwhile, the IFEX closed the day with a relatively positive gain of 0.38%.
The Road Maintenance and Transportation Organization official website announced the signing of agreements to renovate the worn-out fleet with companies including Saipa Diesel and Zamyad; negotiations are also underway with Iran Khodro Diesel. This dragged the related symbols in the Automotive space into the green seeing demand rise.
After the drop in global zinc and copper prices over that past week, zinc has now retreated to $3300 and copper has hit $6950, which resulted in a more balanced market. Despite a rather positive start, symbols listed on the Metals group failed to keep their gains. Arfa’ Steel & Metal Company ticker was halted after announcing a 198% positive EPS estimates (equal to IRR 553). The reason behind this positive change is the conversion of its loan in foreign currency to domestically denominated liabilities plus its agreement signed with Bank of Industry and Mine, followed by the drop in COGS and rise in ingot sales price. The ticker returned to the market 15% higher at IRR4,047. Besides, the US President signed the document raising the duties on steel and aluminium import by 25% and 10%, respectively.
Apart from Iran Manganese Mines which went up by 5%, the Iron Ore space saw negative to balanced trades. Total 1.85 million tons of iron ore has been exported in February, which registers a 16.1% rise compared to the previous month; China has been a major destination.
Finally, the recently offered ticker of Shafa Investment in the Pharmaceuticals industry faced heavy sales pressure and eventually ended 2% higher at IRR 4,262.
DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.
To contact reporters: Inter@agah.com