Page 42 - IRANRptAug20

The listing has spurred new interest in the Iranian stock market, which has made gains of more than 200% in the past year. It has seen significant gains in recent months with people searching for safe havens in which to invest funds—investors are looking to escape the huge depreciation that has undermined the rial since the US introduced heavy sanctions against Tehran nearly two years ago and are now also wary of sectors of an economy rocked not just by sanctions but by the coronavirus (COVID-19) health and economic emergency.
The SHASTA sale is likely to kickstart efforts of other state-owned enterprises to offload shares in their businesses. The Islamic Revolutionary Guard Corps (IRGC), which has massive holdings in swathes of the economy, might be tempted into the market in a significant way.
Mahdi Seifollahi, global market development manager at Mofid Securities in Tehran, spoke with ​bne IntelliNews​ about the IPO and his thoughts on the country’s stock market moving forward.
"The government has already announced its intention to sell some government-owned shares in 1399 [the 2020/2021 Persian calendar year that started on March 20]. It is basically due to its privatisation plan. Other companies are set to come on to the market if the government recognises the SHASTA IPO as a success," Seifollahi said
"Also, it [an IPO] absorbs some of the liquidity in the market at no extra cost. SHASTA is almost the last company in this government tree to go public. Only two companies are remaining. The government doesn't lose control over these companies when they go public. It is just one way to absorb money from society," he added.
9.0​ Industry & Sectors 9.1 ​Sector news
9.1.1​Oil & gas sector news
Iranian export volume is at acceptable level - Oil Minister
The volume of exports of Iranian oil and petrochemical products is at an acceptable level, Iran’s Petroleum Minister Bijan Namdar Zanganeh announced on July 27, SHANA reported.
The official made the statement at an event to sign a contract in connection with further improvement of the South Azadegan field between local companies.
According to Zanganeh, “This year (starting from March 20, 2020), Iran's oil and petrochemical production will increase by 25mn tonnes, thus reaching 100mn tonnes worth $25bn.”
Zanganeh noted that in the near future nine contracts will be signed with local companies in Iran in connection with the preservation and increase of production volumes.
The minister also stressed that the processing potential of the Iranian oil refining company Persian Gulf Star Refinery will reach 450,000 barrels per day (bpd).
PGS currently processes 420,000 bpd of gas condensate, and also produces
42​ IRAN Country Report August 2020 www.intellinews.com