– After the offering of Iran Central Bank rescue package and only in 5 working days, a figure of IRR 1,010,000 bn (cUSD 22.56 bn) from nation’s money supply (e.g. liquidity) migrated from streets to 20% bank deposits. Emphasizing on that, the chair of CBI announced that the other two tools of mentioned rescue package (pre-sale of gold coin and IRR deposits backed by foreign currency) was not as effective as.
– Brokerage houses ranking for the 11-month period ending Feb 19, 2018 has been announced by Securities and Exchange Organization (Iran SEO) and Agah Group again placed second in terms of electronic trades (e.g. online trading) with 6.68% market share. Electronic trades on Iran Capital Market itself span for 21.5% worth IRR 235,000 bn (cUSD 5.2 bn) of the total trading value.
– Iran Central Bank managed to control the forex market fluctuations through offering its rescue package over the past week. While some economists believe that such a package will act as a proper tool to relax the current fluctuations and enable the policy maker to implement its reform plans free from irrational behaviors, there are some disagreeing with high interest rates, even for a temporary and short period of time. In other words, the first group believe that lowering such a rate by decree will not yield the proper result the policy maker is looking for while the other group say that the current CBI supervisory structure and not-respecting health indices by banks will push them towards old days, paving the way for un-regulated financial institutions re-gaining power in the market. However, what is common between those for and against the CBI directive lies within the temporary nature of this solution, which will only act as a painkiller and the need to address the structural reforms in monetary and financial areas ASAP.
– Securities and Exchange Organization of Iran granted its principal consent on issuance of IRR 1,050 bn worth of Sukuk Ijara (on Iran Capital Market) for Alborz Railways Equipment Co. in order to buy 15 locomotives. These securities will be offering on Iran Fara Bourse and have a maturity of 5 years with Ijara (Rent) rate of 15%. The guarantor for new corporate Sukuk is the Railways of Islamic Republic of Iran and Maskan Investment Bank will act as the market maker.
– In an attempt to put a cap on recent USD/IRR unrest, Central Bank of Iran offered an anti-fever package to contain the situation over the FX market. Offering 3 short term solutions, the package is to reduce the heat on the market and stabilize the fluctuations:
– Official stats from Iran statistical center show a solid growth in housing sector of Iran’s Economy over a one-year period from Fall 2016/17 to Fall 2017/18. The average price for 1 square meter of residential land in Tehran rose for 16.6% while the growth figure for average monthly rent of apartments is around 14.8%. After a long lasting recession in the sector, the trade volume and value signals that the sector could be backed on track.
– The head of Iran Central Insurance, Naser Hemmati, announced that Iran Insurance sector companies have three (3) years to comply their financial statements in line with IFRS reporting standards. A work group comprising of experts from Securities and Exchange Organization (SEO), Central Insurance and Audit Organization are responsible to coordinate the GAAP analysis and make the bed for a smooth transition until 2021.
– Following the recent heated demand for foreign exchange in the market and IRR rally to 47,500 level against USD, which was also accompanied by officials warning about risks of speculations, the governor of the Central Bank of Iran announced the issuance of foreign currency bonds in the country within the next 2 weeks to provide those interested with safe options coupled with reasonable yields to dip their foot in the forex market. He, then, added that the National Iranian Oil Company await the reception of permits to issue such bonds as well.
– Today 10% of Shouyande (detergent) Industry Management Co. (SHOY1) offered to public on Tehran Stock Exchange and 100 mn shares of the company got listed among Chemical tickers. The estimated price range during book building was from IRR 2,600 to IRR 2,730 and finally the ticker priced at IRR 2,730. SHOY1 is a subsidiary of Behshahr Industries holding (TSBE1) with its main focus on detergent production. The company’s sales are expected to rise 30% in upcoming year despite the surge of its revenues by 11%. The forecasted EPS for FY2018/19 is IRR 420 which make the P/E ratio 6.4.
– After a huge wave of protest to SEO’s new disclosure directive, today at meeting with board members of SEO and market professionals, it was decided for the missing financial information needed by analysts to come back in form of annex tables to management performance reports for 7 groups of industries. Banking, Insurance, Leasing, Investments, constructions, production and service providers are among sectors SEO chose to enjoy disclosing foretasted budget information.