– In its latest forecast report, the Economist intelligence unit has predicted that Iran Economy will sink with a rate of -3.70% for the year 2019. The US sanctions along with its consequent lower oil sales are the main catalysts behind the nation’s falling GDP growth. Syria, mostly due to the end of its long-lasting civil war, will experience the highest economic growth in 2019. Below picture has the details:
– Following the foreign investors’ entrance to the real part of Iran’s economy, a female individual investor submitted her request to buy an 18.84% stake in Asia Insurance Co, (one of the Iranian Insurance Sector blue-chips) to the Central Insurance of I.R. Iran. Right now the SEO is evaluating the customer (KYC process) along with the possible routes of fund transfers. Earlier last year, Iranian government officially divested from Asia Insurance Company complying with latest privatization directives.
– In a press conference, the Head of the Securities and Exchange Organization (SEO) of Iran briefed the measures taken along with the progress made in the recent past in Iran capital market.
– Today 10% of “Kish Mobin One Co.” (MOBZ1, IRR 3,470) went public as the first IPO of the year on Iran Fara Bourse second market. The ticker was supposed to be priced in the range of IRR 3,400 to 3,470 through book building and finally 10 mn shares changed hands at +247% of its par. The P/E ratio stood on 6.5 which still is much lower than its peers like Atieh Data Processing with P/E of 14.0. The company is to provide value added services like VAS and IVR in the field of telecommunications.
The first cabinet meeting of Persian new year (1396) held the other day with president Rohani pointing out the three unprecedented events in Iran Economy over a course of 15 years. The elected head of state recalled the followings as the major achievements and his legacy in his tenure:
Dr. Rohani cited that also every single penny of required import foreign currency, was funded from non-oil exports, made the trade balance positive after-all and it shall be considered as the high point his administration.
Finally Paid off!
The debt market finally paid off. CBI’s economic deputy announced that the capital market and foreign financing have doubled their shares of the nation’s fund raisings since the last year. “Developments of the debt market have driven down the banking network share by 10%” said Peyman Ghorbani during his keynote speech at Kish Invex 2016. Pointing out the Pro-cyclical effects of recent years’ fiscal policies, Ghorbani pictured the second relic of debt market deepening as the rebate of “business cycles” over the boom and bust periods. Counter-cyclical role, Liquidity Pro-cyclical role along with creating price and credit information are the bold of duties debt market can fulfill.
Market News
Market News
Halted tickers announced!
TSE and IFB issuers supervisory, published a list of halted for more than 7 days tickers clearing the reasons behind. There are 21 with the absence of more than a week.
TSE list:
In the banking sector, despite the numerous follow ups, below names are still reluctant to publish their latest accounts (FY 2015/16). It is noteworthy to mention that CBI objects their financials mostly due the fact that they were not in accordance to IFRS.
Market News
“Homa” chained hotels to go public!
IRR 1,960 bn worth in capital, “Homa” hotels Group is to offer 10% of the shares on TSE and to be named the first of industry going public. The group is in position of 5 hotels on Tehran, Shiraz, Bandar Abbas and Mashhad with a total sum of 788 rooms. Social Security Organization is the major shareholder and they are only willing to sell 10% on the market.
Maxed out YTM!
According to the trade summaries by IFB, currently there are 18 active debt securities on the market and amid those “NIMIDCO” Musharaka is on the top of return list with a nominal rate of 23%. “Rayan Saipa” placed the second with 22% and quarterly coupon payments. The others will return between 18 to 21% and have monthly coupons.
However, the YTM on this issues has a different story. Istisna Sukuks of NIMIDCO, “SMLQ1”, if held up until the maturity, will yield 25.09 while Mashhad Municipal Musharaka has only 19.22% YTM and placed the last on the list. Sina Daroo will return 21.53% and Kaveh Kish Steel has an YTM of 20.31%.
Fifteen out of eighteen have the yield to maturity of less than 20% based on the current price levels.
The 3rd land & construction investment fund licensed!
“Naroon” land & construction investment fund got listed on TSE, as the third of its kind on Iran’s capital market, to raise IRR 182 bn funds for Arak province “Naroon residential project”. Housing investment Co. is the landlord and Maskan Investment Bank will act the fund manager.
Arak province “Naroon residential project” has 144 units and covers 20,000 m2 of area under construction.
In the Market
The stock market ended a bumpy session on a lower note with two major averages descended 0.25%. The TEDPIX (-0.25%) rallied into the early morning, but selling during the final minutes of the session drove the index down to stand on 77,287.60. Weighted TEDPIX also lost slim (-0.04%) for today, ended on 15,050.00.
“Saipa” dominated headlines for the third day in a row. More than 250 mn shares of Auto giant changed hands and the ticker closed at IRR 1,358 with almost 74 mn purchase orders in the queue. Iran Khodro on the other hand lost near 1.5% on the closing (IRR 3,168) with a volume of 18 mn. “Zamyad” and “Bahman” followed the trend as well.
Elsewhere, the top-weighted oil products sector finished in the lower end of the pack, masking relative weakness among the giants. Bandar Abbas and Isfahan Oil refineries were the leaders of downward trend and stamped 31.62 and 23.16 negative points on TEDPIX respectively. Tehran and Lavan oil refineries also lost big on today’s affair, whereas Tabriz and Shiraz refineries compensated for the whole sector. Near 1.6 mn shares of “PNTB1” traded today and the ticker closed at IRR 4,789 (+2.03%).
On the metals sector, despite the fact that global prices mostly rose, 7.2 mn shares of Isfahan Mubaraka steel traded on -2.26% today and the ticker closed at IRR 1,212 and stamped -50.67 pints on the main index. Almost all other steel makers followed the trend.
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
Market News
The 15 Commandments!
Yesterday, the new SEO chair addressed the press. After a quick Q&A, Mohammadi described his plan for the capital market thoroughly. Amid the statement he mentioned the scheme to change the deposit cap of fixed income funds in banks which pour the fresh liquidity to TSE & IFB. Mohammadi testifies to prioritize the following in facing the market challenges ahead: