Page 35 - IRANRptMar19

Tehran Stock Exchange on bullish trend as ordinary investors struggle to find investment options amid economic difficulties
other energy sector industries in early November last year.
The IEB would follow the Iran Energy Exchange , which was relaunched for crude oil trading soon after the introduction of the sanctions.
The state’s National Iranian Oil Company (NIOC), which has offered crude on the exchange, first lowered its base price to $67.10 and then to $65.22, and finally to $64.97 per barrel as demand remained tepid in the first few days of trade. However, Iran’s oil ministry has claimed there has been a big improvement in the level of trading activity in the past month.
The local TEDPIX, the all-star index on the Tehran Stock Exchange (TSE), was up 550.33 points (0.35%) to reach 156,705.3 by close of trade in the Iranian capital on February 17.
Gold sovereign coins are also following the bullish trend down on Ferdowsi Street in Tehran, where one Emami gold coin now retails for IRR44,500,000, up 3% d/d, and the Azadi currently trades at IRR42,500,000.
Iran - Financial market as of Sep 2018 as of Jun 2018 as of Mar 2018 as of Dec 2017
Equity market index: Tehran Stock Exchange (TEDPIX)
195,104.0 111,528.2 96,938.8 95,561.5
Market capitalisation: % of GDP
23.9% (2017) 23.9% (2017) 25.6% (2016) 22.7% (2015)
Market cap: Tehran Stock Exchange / 100.66 102.15 105.98 (TSE) (USD bn)
PE ratio: TSE 11.04 6.76 6.49 7.01 Source: CEIC
8.5 Fixed income
8.5.1 Fixed income - bond news
Iran prepares Islamic bond, warrant and insurance-linked securities products
Iran is developing a range of new financial products, from Islamic bonds to warrants and insurance-linked securities, in an effort to give local firms more funding options as sanctions put pressure on the economy, Reuters reported on October 2.
But Iran’s financial system has been able to ride out past periods of sanctions, and officials told the news agency that they are working on new products to stimulate capital markets activity. All the products are structured to obey Islamic principles, such as a ban on interest payments.
The capital market regulator, the Securities and Exchange Organisation (SEO), reportedly said it had started work on a new structure for Islamic bonds. The sukuk will use an agency format known as wakala, which is widely used in Asia and the Middle East but not yet offered in Iran, said Majid Pireh, senior Islamic finance expert in the SEO’s research, development and Islamic studies department.
“This will be a new financing instrument for companies,” Pireh was cited as saying, adding that regulations could be ready in six to nine months.
Wakala sukuk pay a variable rate, giving them equity-like features compared with other sukuk in Iran, which pay fixed rates.
35 IRAN Country Report March 2019 www.intellinews.com