EU/Asian firms’ latest status in Iran Economy after the US left JCPoA!
– After US decision to leave JCPoA there were anticipations on the future status of foreign companies’ participation in Iran Economy who have mutual ventures with the Iranian side. Below table demonstrates a clear picture of whether these companies will stay, leave or are under special considerations to work with Iran.
– Following the privatization policies in Iran Economy, during the current month (May/Jun 2018) the Iranian Privatization Organization is to offer a total sum of 19 governmental companies and assets to public through Iran Fara Bourse and Tehran Stock Exchange. 15 state owned silos, two insurance companies share blocks and a livestock abattoir are among the list of Iranian government divestiture.
– University of Tehran is to underwrite the first academic Venture Capital fund on Iran Fara Bourse from May 26, 2018 for a seven business day period. UTVC fund has IRR 150 bn (USD 3.5 mn) in capital and will issue 150,000 investment units at IRR 1,000,000 apiece. The settlement period of investment is T+2 and each investor shall purchase at least 1,000 units.
– TEDPIX registered a 3% decline at the end of Ordibehesht month (21 Apr-21 May), while the weighted All-Share index posted a 4.3% rise; with political chaos being pre-digested and relieved to a great extent along with major shareholders’ support for shares, investors were provided with the opportunity to eye economic variables affecting companies’ profitability more vividly. Furthermore, the IFEX also grew by 4% over the said period with the average value and volume of its trades registering a 6% and 55% growth, in comparison with the past month, mostly influenced by the crude price hike.
In the Market
The major averages did settle near their flat lines as equities took a break from consecutive bullish rallies. The TEDPIX (0.00%) start the day strong but lost the pace throughout the final hours and closed at 95,229.93. IFEX on the other hands gave it out to petrochemicals sale pressure and lost 0.36%.
The majority of Oil Products space companies shed their prices with Tabriz Oil Refining facing a sell queue early in the session. Analysts believe that the industry shall go through a mild correction phase and the future is highly dependent on global crude price in coming weeks.
No special movement was seen in the Banking group. Having returned to the market after an 18-month absence and released its plan to sell excess assets, Bank Gardeshgari (Tourism Bank) ticker got halted for 2 sessions following the announcement of a 200% rise in its accumulated loss; Negin-e Gadeshgari-e Iranian Company, as the bank’s subsidiary, decided not to pay out dividend, which increased the bank’s loss from IRR 909 bn to IRR 2,680 bn.
Just like the previous session, apart from a few spare part manufacturing tickers, the rest of the Automotive industry ended in the red. Mehrkam Pars, Nirou Mohareke, Mehvarsazan Iran Khodro and Iran Casting Industries went up by 4%.
The Mobile Telecommunication of Iran ticker, listed on the Telecommunication space, was halted; 701,713,350 shares of this company, owned by Telecommunication of Iran Company, will be used as collateral for the Ijarah Sukuks issued by this company for 4 years.
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