Iranian Islamic Treasuries yield +30% now!
– Continuing its upward trend, the yields on Iranian Islamic Treasuries reached +30% on average over the yesterdays’ session in Iran Debt Market. Despite the fact that bank deposits enjoy a risk-free interest rate of only 15%, the ITB securities yields have gone uphill mostly due to the better than expected profitability vision of Iran Capital Market and the need of big institutional traders for more liquidity in this bullish rally. The below table demonstrates the latest status of ITB market:
You can find all the data with regards to Iran debt market, provided by Agah Group, on Cbonds platform in English.
– After the official implementation of an FX secondary market, it seems that price fluctuations are now more logical and rates are to be more in line with the realistic economic status of the nation. In a matter of days from reactivation of exchange houses on FX transactions, rates fell below certain channels:
- AED/IRR: 21,569
- USD/IRR: 79,245
- EUR/IRR: 90,800
- CNY/IRR: 11,600
However, despite the calming situation over the secondary market, travel and daily use currency still trade at high prices (USD/IRR circa 10,400) on some hand-picked exchange houses which are by the way obliged to trade FX only 1% higher than the secondary market rates!
– Iranian banks shall file more than 11K branches for closure in order to be in line with global standards. According to stats released by the Tehran Chamber of Commerce, just in 2016, there were 31.3 branches for every 100K Iranian while the global standards stand at only 12.5. Said banks shall exactly close 11,730 branches should they want to amend their basic structural shortcomings.
– Underwriting process of the first Iranian life insurance investment fund (fixed income) began from yesterday for a 14 days period. Being managed by Almas AM co. and Day Insurance, the minimum investment capital has set to be IRR 10,000 for each unit. Further information on the fund’s details will be announced accordingly.
In the Market
Equities ended today on a modestly higher note despite their super bullish typhoon early session. TEDPIX (+0.69%) jumped to the +130K level just after starting bell but sale pressure kept growing and made the index to close at 129,901.93. IFEX (+0.83%), on the other hand, raised rapidly to above 1,500 level as well, however, settled a bit lower on 1,491.45.
Today’s market, like most of the recent month sessions, led by the heavy-weighted Chemicals (+1.45%) and its supergiants. Pars Petrochemical (PARS, +2.88%) experienced a hiccup during its trades yet managed somehow to stay above its flat line and stamped 151.37 positive points on the index solely. Unlike that, Pardis Petrochemical (PRDZ, +4.87%) started the day with a massive demand and end the session with a buy queue as well. Parsian Oil & Gas (PASN, 3.86%) also had a hand in the sector’s positive trend and placed 145.21 points on the index.
With no doubts, Auto (+2.57%) sector, was the surprise of today’s session which started the day in red and ended with orders left in the buy queue. Reaching the bottom line, technically speaking, finally paid off and turned investors sentiment towards the industry’s tickers. Saipa (SIPA, +3.11%) and Iran Khodro (IKCO, +3.77%) were the leads today.
In general, due to uncertainties in enforcing the recent CBI’s FX regime and the future of political tensions, the stock market acts strangely these days. It seems only a perfectly orchestrated wave of good news can heal its broken heart and make amends.
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.
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