USD 491.5 mn Sukuk Murabaha offered on Iran Fara Bourse!
Market News
– 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.
– Despite a long ago CBI directive on lowering interest rates, there are still ways of circumvention the policy maker decree by putting fixed income mutual funds in the face offering investors 15% more rates to attract deposits. Addressing this issue, the chair of Iran SEO, Shapour Mohammadi, emphasized that “unless all fixed income mutual funds complied with said directive, their license extension application will become null upon the termination date”.
– Head of Iranian brokers association (SEBA) stated in an interview that settlement period of Iran Stock Exchange equities must be the same as it is for debt instruments. Currently the Iranian stocks and rights have a settlement of T+3 period which caused liquidity shortage and other post trade difficulties for most market practitioners. By lowering the settlement period to T+1 dynamism of the market will reach to better levels.
Stocks Ended red as Investors Chewed on Middle East tensions!
In the Market
Doubts about the future of oil prices and worries around middle east tensions continued to linger on Tehran Stock Exchange. The TEDPIX (-0.06%) finished with modest loss while Iran Fara Bourse index, IFEX, (+6.90 points) reach new record highs indebted to it large cap components. The overall trade volume and value show signs of depression amid recent geopolitical tensions, not to say technical resistance level of major indexes made it harder for further development to achieve.
On the whole, today’s session was pretty uneventful. Many tickers were traded in a bounced range led to a far below-average trading volume. The Auto Sector (-1.41%) lost some of its recent gains with almost all of tickers ended the day in red. The rebound correction phase led by Saipa Co. (SIPA1, -2.59%), however, most of the other giants followed the trend.
Finally, Oil Products like Isfahan Oil Refinery (PNES1, +1.27) helped push the the overall index a bit added 22.45 points, while other industry players left in the red and finished the day with moderate losses. The uncertainty towards the future of oil price made the bed for not so much welcoming trades for the sector.
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