Banks are no longer allowed to sit as registrar on Iranian mutual funds!
– In an attempt to make amends for Iran’s banking sector, Securities and Exchange Organization of Iran banned banks to act as the registrar of Iranian mutual funds anymore. In this vein, banks and credit institutes whose are already carrying out the registrar spot for mutual funds shall plan for an immediate transfer of the position. The central bank of Iran made clear before that banks are not allowed to issue or redeem mutual funds investment units.
– After President Rouhani submitted the budget bill for 2018/19 to the parliament on Dec. 10th and lawmakers offered their proposals to the bill to the responsible body, the Majlis Joint Commission approved the outlines of the said bill the other day; the details will be released in the coming weeks.
– According to the Central Bank of Iran, the average Producer Price Index (PPI) in the 12 months ending Azar (Dec. 21st) increased by 9.7% in comparison with the same period last year; PPI inflation stood at 9.4% in the prior month.
In the Market
After two sessions full of emotional investors adding to the market selling pressure, rationality seems to have returned to the market, which backed up by strong fundamentals, dragged most sectors into the green territory; it is worth mentioning that early signs of the market return were seen in the final hour of the previous session where institutional investors started supporting shares. Considering today’s value and volume of trades, however, many believe that tomorrow will ensure whether the market will continue its normal behavior or will continue to remain emotional.
The Investment and Banking sectors ended today’s session with moderate gains; considering its report submitted to the CBI and efforts to remove ambiguities, Bank Saderat ticker is expected to be opened soon.
The Chemicals group also settled with good gains, led by Pakshoo Industrial (PASH1) and Zagros Petrochemical (PZGZ1), going up by 3%.
Many names in the Food and Beverages group also grew with Pak Dairies (LPAK1) and Behpak (BHPZ1), among others, facing buy queues in their final trades.
Finally, a rather strong positive sentiment dominated the Automotive, Metals and Iron Ore groups with many names facing buy queues; with fear and concerns leaving the market, strong signals from global markets still have the power over our commodity based sectors.
Furthermore, Telecommunication of Iran Company, listed on the Telecommunication industry, held its extraordinary General Meeting approving the IRR 6000 bn capital raise relying on shareholders’ paid-in capital and claims due, mostly for financial restructuring and improving the company’s profitability.
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