The composition of Iran debt market on July 09, 2017 is as the below chart indicates. Major share of the market is for Musharaka Sukuks and Islamic T-Bills with over 62% of its IRR 286,066 bn (USD 7,567 mn) size. The YTM of some T-Bill issues now reached to 24.79% (Purchase commission not included) while the figure for Municipal Musharaka top issue is 24.86%.
– Tehran Stock Exchange is once again safe after a series of cyber attacks by ISIL linked hack group named DZ. The attack aimed 200 Iranian hosts and websites including a couple of mutual funds and brokerage firms. “The most harm was for companies using a same server for their website operations” said Roul Allah Dehghan, the head Information Technology department of Tehran Stock Exchange. He assured all the market participants that the danger is now lifted and all the attacked websites are now under maintenance to be soon back on track.
– In an attempt to make Tehran Stock Exchange more favorable to global taste, it seems that a new classification of market sectors are now on the regulator’s high priority list. Having more than 35 diverse industries on the TSE, the market is considered as one of the most scattered in the world. The new ICB based classification is to retire the old familiar ISIC standard and new indices are going to born with regards to new changes.
– “Foreigners willing to invest in Iran Stock Exchange can now enjoy a free market rate, converting FX, entering and repatriating their capital” Said Bahador Bijani ,deputy director of SEO in international affairs. Before this, according to foreign investment promotion and protection act (FIPPA License), the government only guaranteed to provide investors with the required FX based on the official market rate, realizing a loss of near 20% only at the entrance. Now with the new directive, once foreign investors acquire a FIPPA license, it is promised that they can import and take back the funds on the free market rate. This is considered as a huge step towards reforming Iran Stock Exchange.
– A memorandum of understanding has been signed amid Iran central bank and “Sinosure”, a Chinese Trade Credit Insurance company, giving guarantee on facilities that will capitalize future Iranian construction and production projects. In a meeting with “Sinosure” executive director and the deputy governor Iran Central Bank, ensured that the Chinese credit lines will be open to Iranian state owned companies in times of utilizing funds from China.
According to the latest reports by the Securities and Exchange organization, the total market cap of Tehran Stock Exchange and Iran Fara Bourse issuers break the cap of USD 88 bn over the April-May of 2017. The average P/E ratio of the market is now hovers around 6.96. The top 10 companies with highest market cap are:
* Report on Iran Economy import-export stats on metal products for a period of 10 months ending in December 2016, indicate a strong win in favor of Steel products. Due to Iranian Costume officials, the total export value of mining and industry sector reached to USD 5.4 bn. The figure speaks for 15.3% of the total export value. The steel value chain send outs were solely responsible for a 40.6% portion with Copper products and Iron ore next in line. The first export destination for metal products was China importing 22.9% of Iran production. Iraq and United Arab Emirates stood on second and third place with 13.2% and 9.2% respectively. An amount of USD 3.08 bn of Mining and related products were imported into the country forming 8.5% of the total nation’s imports and of which 70% was for steel and related products.
– The Fiqh (Jurisprudence) Committee of the Securities and Exchange Organization finally approved the proposed model on issuing Stock Depository Receipts on Tehran Stock Exchange after all the controversies solved. “The DRs as a fund raising solution for major shareholders and a way to increase the free float of a ticker, was under consideration for quite a while” said Reza Kiyani, the R&D director of SEO. The frame work suggests major shareholders to offer a part of equities under their ownership to retail investors whilst keeping the corporates actions power, including selective voting rights, to themselves.
– The latest stats show that the bank debts to the CBI reac
By Mahdi Goodarzi & Mojde Rezaee
Taking a look at the Sixth Development Plan, one finds out effective measures for supporting and expanding Iran’s Capital Market, which is now suffering from high interest rates. Considering the agreements reached between banks on lowering this rate to 16%, the current rates revolve around 24%, which is not only a threat to the Iran’s Capital Market but also endangers industries, depriving local companies of competitiveness in international markets.
Out of the 35 companies listed on the Chemicals sector of Tehran Stock Exchange, 19 ones have released their un-audited budgets for the FY ending 19 March 2018 in a way that only 5 have reported negative adjustments and the rest have added to their profitability.
