New Piece of corporate Sukuk on Iran Fara Bourse

Thursday, 17 May 2018

– Today a new piece of corporate Sukuk is to going to be underwritten on Iran Fara Bourse. The new Ijarah Sukuk securities will be issued by Saba Naft construction and engineering Co and have a nominal yield of 15%. With a maturity of 48 months and coupon frequency of 3 times per year (quarterly), SN1Q1 securities worth IRR 920 bn (cUSD 21.9 mn).

– Following the ratification of an amendment to the current Anti-Money Laundering bill in the previous week, parliament members are now focused on updating the legislation in order to fulfil the requirements set by the FATF. Among what was discussed and agreed upon over this course are the establishment of Financial Intelligence Center at the Ministry of Economic Affairs and Finance to combat money laundering and financing terrorism, although the dispute over a unanimously agreed-upon definition of terrorism postponed the final ratification of the bill.

– With 2 years of talks and negotiations, the joint venture was formed between Saipa and Citroen companies, which resulted in the manufacturing of their new product, C3, which will be soon offered into the market. After concerned raised by the US pulling out from the JCPoA, an official in Saipa-Citroen Company announced that their top priority is to keep business with Iran and are moving as their previously made plans until the EU announces its official approach towards this matter, stressing on the strong communication with their Iranian counterpart.

– Following the Central Bank of Iran putting the inflation rate of Farvardin month (March-April) at 9.2%, the Statistical Center of Iran reported the inflation rate over this period at 8.1%.

In the Market
The stock market began the day on a strong higher note and kept the pace throughout the session end. The TEDPIX added 0.21% while the IFEX (Iran Fara Bourse index) outperformed, rising 0.29%.

The majority of names in the Chemicals group shed their prices; despite facing a buy queue just the other day, Fars Chemical Industries hit its bottom. However, petrochemical names like Kermanshah and Khorasan Petrochemical companies went through positive trades. Zagros Petrochemical distributed IRR 7400 dividend among its shareholders; the company is planning to build a special utility as well as purchasing a ship with the capacity to carry half of its sales amount.

A considerable sales pressure was seen among the Construction space, unlike its recent positive activities. On the other hand, half names in the Cement group hit their highs, including Hegmatan Cement, Tehran Cement and Fars va Khuzestan Cement.

The entire Sugar space ended above their flat lines, some with buy queues, but Shirin Sabet Khorasan Sugar; the upcoming Ramadan month has attracted attention to this sector.

Most tickers in the Metals industry finished in the green, led by Esfahan Steel; an official in this company announced the delivery of their produced rails to the Railway Company of Iran. Having elected its board members in its extraordinary general meeting, Iran Manganese Mines returned to the market 1% higher at IRR 8,200. The Iron Ore group was traded in a balanced manner as well.

The Automotive industry managed to keep the positive sentiment started since the beginning of the week to a great extent; as was said in our previous daily report, this seems mostly as the result of speculations.