Automotive Space on the Mend
– The latest data on automobile production in the country has registered a 15.2% rise in the current year spring, over 21 March- 21 June. Out of the total 306,545 vehicles produced, 260,070 vehicles have been manufactured by Iran Khodro, Saipa and Pars Khodro and they, as the leaders of this sector, proved a 15.62% increase in comparison with the same period last year. To be more detailed and specific, Iran Khodro was placed first with 145,631 vehicles (13.6% growth), followed by Saipa with 69,736 vehicles (14.1% hike), Pars Khodro with 44,803 vehicles (25.3% rise).
– As the result of the meeting between the Governor of the CBI and the CEOs of private and state-owned banks, it was decided to set the interest rate 2-3% higher than the current inflation rate, which hovers around 10%; the final decision, however, is yet to be finalized within the next meeting. In this regard, with the government-issued bonds’ yield being blamed for affecting this rate, an official in the Minister of Economy and Financial Affairs stressed on the current credit crunch mostly due to banks’ high NPL ratio, sour assets as well as mismanagement of resources as the main reason for such taking place, rejecting the whole idea.
In the Market
Among companies in the Banking sector, where mostly ended in the red, Post Bank Iran closed with a buy queue and Bank Middle East also finished in +1.12% zone. In an interview, the Governor of the CBI stated that in 2013, around 25% of working capital used to be provided by unsupervised credit institutes, which has now reached 8%. Besides, the recent statistics released by the CBI has shown that 17,494 letters of credit have been opened over the past year, worth $19.2 bn. Being halted for around 1 year and owing to uncertainty about the exact date for holding its general annual meeting, an official in Bank Saderat stated that the board members are trying to hold this meeting before 22 July, although this will not guarantee the reopening of this ticker in the stock exchange market.
The whole Sugar industry went through positive trades with nearly all of them closing with buy queues, led by Hegmatan Sugar.
Tickers in the Automotive group went through balanced trades with names active in the spare part mfg. area gaining a little of which Iran Lent (+4.54%), Indamin Shock Absorber (+3.96%), Ravan Fanavar Industrial Engineering (+4.79%) and Iran Automobile Spare Parts (+3.07%) can be names. Stressing on their goal to raise quality, an official in Saipa said that Pride production is to gradually end until the next year. Iran Khodro and Pars Khodro, however, lost 0.97% and 0.21%, respectively.
Tickers like Tehran Oil Refining and Lavan Oil Refining in the Oil Products industry were halted, due to applying positive adjustment on their statements. This pushed others like Esfahan Oil Refining and Tabriz Oil Refining into the green zone, facing buy queues; tickers of refining companies were eventually halted until the end of the session.
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