Banking System to Get Back on Track
Aimed at establishing correspondent relations with foreign banks, the Central Bank of Iran has been determined as well as successful to implement Basel II and III standards in the banking system of the country; this will pave the way for attracting larger amounts of foreign investment into the country.
However, as one of the biggest problems in absorbing such funds is the multiple forex rates, which concern foreigners about the time of ending their activities and repatriating their money out of the country. With the official and free market rates standing at IRR 32,446 and IRR 37,600, the government started to increase the official rate to close the gap between them as the first step to unify this rate, which was followed by limiting the number of importing items which are in need of officially rated forex.
A banking official also announced several foreign banks’ interest in opening branches in the country, in addition to the Woori Bank and Bank Muscat which have set up branches after the removal of sanctions; this calls for the CBI issuing the license that will be considered after they will submit the required documents to this regulatory body.
In the Market
At the end of today’s session, most companies in the spare mfg. area listed on the Automotive industry settled with modest wins; it seems that the sharp growth expected in this group mainly related with the presidential election is not going to happen; while Saipa finished 0.31% higher, Iran Khodro only could pull out of the red zone and close at 0% territory; however, the rising uncertainty about the outcome of this election has made investors more cautious. In its Extraordinary General Meeting, Pars Oil Company officials decided to implement the second phase of its 29% capital raise plan from IRR 400 bn to IRR 515 bn based on shareholders’ paid-in capital and claims overdue.
The majority of symbols in the Metals space went through negative trades, with a few exceptions of Navard Aluminum and Iran Ferrocilis, which went up more than 4%.
A great number of companies in the Chemicals group witnessed mostly slim losses, although La’abiran closed with a sell queue. 10 mn shares of Tamin Petroleum and Petrochemical Investment, 10mn shares of Iranian Petrochemical Investment Group and 5 mn shares of Shazand Petrochemical were block traded in the retail market as well.
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