Actual Steps towards Compliance
Targeting to put Iran’s banking sector in line with the latest international banking supervision standards and regulation along with developing and facilitating international communication, the CBI’s proposed regulation regarding the quantification of the capital adequacy ratio for credit institutes was accepted. This new instruction will substitute the rules and regulations approved in 2003 by the Money and Credit Council and had remained unchanged since then. The new regulations oblige banks to comply with these new requirements within 5 years.
In the Market
Nearly all tickers in the Automotive industry ended above their flat lines with most companies active in the spare part mfg. area like Iran Tractor Mfg., Charkheshgar, Mehvarkhodro and Iran Lent facing buy queues. Such a positive and fresh sentiment has been seen mostly after Saipa released its performance report. In its unaudited financial report, Saipa has managed to realize IRR 280 EPS over the FY ended 20 March 2017, registering a 3% rise and covering 103% of its estimates; experts are expecting a positive adjustment in the company’s projection for the current year. It is so while it had made IRR 20,000 bn loss during the same period last year; Saipa has the power to both move the sector as well as the whole market towards the positive zone. After announcing the agreement between Iran Khodro Diesel and Benz, this share also moved towards forming a buy queue at IRR 838.
In the Construction space, Abadgaran-e Iran Welfare and Tourist Corporation and Shahed Civil & Development faced buy queues early in the session, dragging some other tickers into the green area. This sentiment spread to the Cement sector, pushing Doroud Cement, Sharq Cement and Sepahan Cement into the green territory. In this space, with its 30% capital raise permission ready, Shomal Cement Company is to hold its extraordinary meeting to inform shareholders of this raise relying on their claims and paid-in capital.
With Atie Data Processing news on 67% capital raise plan coming out on Codal.ir, this name in the Communication group witnessed a price hike and faced a buy queue; this is done to reform its financial structure.
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