Foreign Investments in Iran Capital Market reaches new highs!
– Announcing the IRR 20,000 bn worth of foreign investors trade value in Iran Capital market, the Vice-Chairman International & Foreign Investment Affairs at the Securities and Exchange Organization (SEO) of Iran added that a huge part of this money has entered into Iran’s debt market.
Corporate Sukuk Murabaha offers on Iran Fara Bourse!
– Today the initial offering of cUSD 24.1 bn worth Sukuk Murabaha for Kerman Motor Co. takes place on Iran Fara Bourse for three consecutive days. This securities are to provide working capital to the company and has a nominal yield of 17% with coupons to be paid quarterly with a maturity of 24 months. This is another piece of corporate debt securities on Iran capital market with settlement period of T+1.
Rates to decline on Iran Capital Market fixed income funds!
– Recent stats revealed by Securities & Exchange Organization of Iran show significant decline on fixed income funds’ yields registered in the Iran Capital Market. The below comparison table indicates that on average Iranian fixed income mutual funds are now paying circa 2% less to their investors over the first 8 months of 1396 (2017/18). This is the direct effect of late Iran Central Bank directive on lowering interest rates and it could be counted as a good sign for Iranian economy in general.
Harmony Between Iran Debt Market & Iran Banking Sector!
– Going under pressure to stop the issuance of Islamic Treasury Bills since late last year, the Iran Debt Market started to see the re-entrance of such securities since September this year. On Saturday, the Iran Fara Bourse hosted IRR 9,000 bn worth of bills with a YTM of circa 15%. It seems that the Central Bank of Iran’s directive on lowering interest rate on bank deposits followed by strict supervision and precision in defining new rates has now hit the Iran Debt Market. The harmony between interests offered by the money and debt markets contains two hidden messages: one refers to the opportunity it offers to deepen the Iran Debt Market by more supply and the other deals with the positive effects of lower interest rates on other markets, which has the potential to turn the stock market into a more attractive one for fresh money.
USD 491.5 mn Sukuk Murabaha offered on Iran Fara Bourse!
– In an attempt to provide Government Trading Corporation Of Iran enough funds required for wheat purchases, the ministry of economic affairs and finance sold IRR 20,000 bn (USD 491.5 mn) worth of Sukuk Murabaha on Iran Fara Bourse the other day. The securities have maturity of 4 years with a nominal rate of 17% per annum and the coupons will be paid semi-annually by Central Securities Depository of Iran.
East Azarbayejan Pegah Dairy Went Public on Iran Fara Bourse!
– Today 10% of East Azarbayejan Pegah Dairy (GHPZ1) went public on Iran Fara Bourse through book building as the 9th IPO of current Persian year (2017/18). The ticker priced at IRR 3,355 and each individual and institutional trading code got 155 shares. The company foretasted an EPS of IRR 332 for the coming period, make its P/E ratio near 10 which still is double of its peer group.
Tehran Stock Exchange performed acceptable on 1396 H1!
– Tehran Stock Exchange stamped an acceptable return of 11.1% for first half of Iranian year 1396 (2017-18) indebted mostly to August September performance (4.2%). However, despite the rise of 3,500 points for the TEDPIX, trade volumes were lower than enough to show signs of market deep recovery. According to analysts, the trade turnover of individual investors which has been always the skeleton key to market prosperity was way weaker than expected contrary to recent months. The below table demonstrate the participation share of individuals versus institutions.
Treasury Bills to return on Iran Fara Bourse!
– After a temporary lockdown of 6 months, Islamic Treasury Bills are to come back on Iran Fara Bourse trading board. Just the other week, initial reception process of new government bonds for IRR 120,000 bn carried out and new bills, doubling the size of total issues, are now listed on Iran Fara Bourse main debt board. Moreover, for the first time Iranian government published treasuries with maturities up to 24 months. The below table gives an insight on Iranian debt market status and terms of new treasuries.
Us vs. Them; the strange must lift off!
By Alireza Hojjatnia and Mahdi Goodarzi
“The first step toward success is taken when you refuse to be a captive of the environment in which you first find yourself – Mark Caine”
As tempting as “Iran Capital Market” sounded at first, now it is no news that the reopening of what the world call “one of the last untapped emergings of the world” walked sprightly like a pigeon and sat like a tortoise. The expectations were topped the sky and in operation everything happened much slower than anticipated. There are awful lot of writings that addressed the issue, yet non measured the domestic facts against realities of the world.