Banks towards More Transparency
– Following our news the other day on the Central Bank of Iran obliging state-owned banks to publicly disclose their information starting from the next Persian calendar year, which is aimed at increasing transparency in the financial sector, this regulatory body has provided a scheduled guideline. Based on that, state banks must publish information on changes in their capital, CEO and board members as well as news on breakups, mergers and acquisitions in the first quarter of the next year. The next quarter will be accompanied by releasing information on such banks’ net loans, LCs, guarantees and repayment of loans. In the third quarter, they will have to announce details on any kind of debt by individual and institutional clients, in addition to their lending status to other banks; this will be followed by revealing information on the capital adequacy ratio and risk based assets. Finally, these banks will have to disclose reports of their meetings along with their audit reviews and in fact bears no limit.
– In today’s session, the Majlis allowed the government to withdraw $1.5 bn from the Tose’e Melli Fund aimed at creating and developing sustainable employment in rural areas.
In extraordinary general meeting, Shomal Cement Company is planned to raise its capital by 30% relying on shareholders’ paid-in capital and claims.
In the Market
Many analysts believe that with the All-Share Index approaching the 77,800-78,000 point level, the correction phase is going to end, which is estimated to take another 20 sessions, although everything depends on the injection of new and fresh money into the market.
Bank Sina (-0.78%) in the Banking group officially announced it has established correspondent relations with 25 foreign banks. Bank Khavar Miane (Middle East) (-0.04%) intends to raise its capital from IRR 4,000,000 mn to IRR 5,000,000 based on shareholders’ paid in capital and claims. Besides, 35 mn shares of Bank Mellat was block traded in the retail market at IRR 920.
Symbols in the Transportation space mostly ended with modest gains with Rail Seir Kosar facing a buy queue; today is the third consecutive session that it is facing a buy queue. Tuka Rail and Tuka Transportation also rose more than 3%.
The whole Sugar industry also finished in the green with Lorestan Sugar, Shirin Khorasan Sugar and Esfahan Sugar going up more than 4%; Qazvin Sugar ticker was also reopened 10% higher at IRR 3,471; the company has distributed IRR 40 dividend after holding its general annual meeting.
With some good news heard in the Automotive sector, larger symbols like Iran Khodro (-0.96), Pars Khodro (-0.43%) and Saipa Diesel (-2.08) went through negative trades. Indamin Shock Absorber ticker was reopened after holding its annual general meeting with no dividend at IRR 862, shedding 1%.
As a market leader in Europe and China, Volkswagen Company is planning to return to Iran after 17 years, entering into business with Mammut Khodro Company. This is expected to boost the Automotive space. An official in Lutous Parsian Investment Bank also announced the Securities and Exchange Organization of Iran’s agreement to issue Murabaha Bonds, worth IRR 7,000 bn, to finance Iran Khodro for purchasing spare parts and equipment.
Having held its extraordinary general meeting and approving its capital raise plan (140% from shareholders’ paid-in capital and 60% in hands of the board members), Telecommunication of Iran ticker, listed on the Telecommunication industry, was reopened at IRR 14,660, going up nearly 3%.
Most companies in the Construction space ended above their flat lines with Fars Civil and Development, Zayande Roud Housing Investment, Iran Construction Investment and Tehran Renovation and Construction closing with buy queues.
DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.
To contact reporters: Inter@agah.com