Banks Facing Mergers
– In order to approach international financial banking standards, the CBI governor announced the possibility of banks mergers, as one option to increase banks’ capital; other options are raise their capital via investors’ paid-in capital or issue new stocks; this, in addition, will reduce costs of branch maintenance He assured account holders that their interest will be protected.
– The latest report by the Central Bank of Iran released a 9.8% inflation at the end of the 2nd month of the current Persian calendar year, which registers a 0.2% growth compared to the previous month. It seems that this is the last time with 1-digit inflation ratio. Based on the International Monetary Fund, this rate will reach above 11% at the end of the current year; this increase has been mostly attributed to fluctuations in the foreign currency market.
In the Market
On Thursday meeting, OPEC decided to extend its oil production output by 9 months, ending March 2018. As its first reaction, prices dropped in the market; however, attendants assume that they will go up again mainly due OPEC members’ willingness for higher prices. Among tickers in the Oil Products industry, Sepahan Oil closed with a buy queue with Lavan Oil Refining (1.28) and Behran Oil (0.26%) going up the most. Besides, an official announced the government promise to launch a fund to cover fluctuations (which are more than 10%) in foreign exchange rate.
Tickers in the Sugar space gradually started to see a raise in demand with Shahd Company and Hegmatan Sugar gaining 4% and 2.15%, respectively while Qazvin Sugar was the laggard shedding 3.4%.
The Minister of Industry, Mine and Trade announced the government plan to raise non-oil export to 25% until the end of the year; Dairy products and automobiles are among the list. Awaiting the reopening of Saipa ticker, nearly the whole Automotive industry went through negative trades with Iran Khodro Diesel, Mehvarkhodro and Nirou Mohareke closing losing more than 4%.
In line with the descending trend among commodity names, the majority of names in the Metals space ended beneath their flat lines with Zangan Zinc Industry closing with a sell queue. Esfahan’s Mobarake Steel (1.01%) and Alurmad (1.41%) were the top gainers.
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