Page 36 - IRANRptNov18

Iran - Financial market as of Jun 2018 as of Mar 2018 as of Dec 2017
Equity market index
111,528.2 96,938.8 95,561.5
Market capitalisation: % of GDP
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 6.76 6.49 7.01
Index: Tehran Stock Exchange: TEDPIX 111.53 96.94 95.56 (USD bn)
Source: CEIC
8.4 International ratings
OECD downgrades Iranian, Turkish credit risk ratings, Turkmenistan’s score unchanged
Economically troubled Iran and Turkey have had their credit risk ratings downgraded by the Organisation for Economic Cooperation and Development (OECD), although the rating of Turkmenistan, which is enduring a financial crisis, was left unchanged.
On the list of Country Risk Classification of Participants to the Arrangement of on Officially Supported Export Credits, as of June 25, Iran’s rating fell to 6 from the 5 it received in January, while Turkey’s rating fell from 4 to 5. Turkmenistan remained on 6, where it sits with country’s including Uzbekistan (unchanged). Both Turkey and Iran are battling a currency collapse.
The worst score given by the OECD to countries faring badly, such as Afghanistan, is 7.
8.5 Fixed income
8.5.1 Fixed income - bond news
Iran offers residence ‘$250K’ investors, prepares Islamic bond, warrant and insurance-linked securities products
Foreign investors who invest a minimum of $250,000 in Iran are to be offered a five-year residence permit, Mehr News Agency has reported. The threat of renewed US sanctions has seen many foreign investors in Iran make for the exit in recent months, with even EU efforts made so far in fighting back against Washington’s policy failing to dissuade a slew of big European companies from leaving the country. Turkey, which like Iran is fighting economic turmoil, recently made a similar offer to foreign business people.Qatar and the United Arab Emirates, meanwhile, have lately stepped up their efforts to woo those who can bring foreign investment.
The Iranian announcement was made following a meeting of the Supreme Council of Economic Coordination, chaired by President Hassan Rouhani. The Council’s composition includes senior cabinet members, as well as the heads of the judiciary and parliament.
The meeting also gave the Central Bank of Iran (CBI) further powers to conduct open market operations (OMO), further relinquishing control of its securities and opening them up to investors in the country’s capital markets. Another authorisation given to the CBI allows it to facilitate the trading of foreign currencies in the country’s secondary forex market. In
36 IRAN Country Report November 2018 www.intellinews.com