CBI to Direct Banks towards Proper Resource Management
– While the Money and Credit Council had previously set the interest rate at 15%, there are some banks, both private and state-owned, which are offering even up to 26% return to attract funds. The governor of the Central Bank of Iran believes that it is the performance of the credit institutes, which has paved the way for doing so; however, some economic experts blame the 34% rate at which the CBI offers loans to banks. Rejecting such an idea, the CBI official announced that such a high rate has in fact been set to encourage banks towards correct management of resources and prevent them from relying on the CBI resources whenever they feel like it.
– Referring to the recent sales of Saipa Yadak Ijara Sukuk on Saturday in the stock market, a company official stated that they are considering to be listed in the stock market, enjoying a high market share, which has led to the doubling of the company’s budget.
– An official in Bank Melli Iran announced this bank as a pioneer in selling its excess assets such that about IRR 1,350 bn has been gained through selling such assets via tenders, despite the recession in the housing market. He also added that there are still other assets worth IRR 7,000 bn, which are planned to be gradually sold. In this regard, he said that banks are facing difficulty mostly in selling non-residential and largely, industrial buildings; the owners of such places have been previously granted with facilities to purchase specialized equipment to do special economic activities, which are not publicly demanded now.
Holding IRR 1,000 bn in capital, Baqmishe Housing and Urbanization is planning to raise its capital by 32%, mostly relying on shareholders’ paid-in capital and claims, aimed at financial restructuring, reducing risk as well as interest expenses. International Construction Development and Bank Ansar are its major shareholders by 52.2% and 20.3%, respectively.
In the Market
The rise in commodities’ global prices is still in place with oil price approaching $49, mostly due to lower drilling in the US, and copper reaching $5940. Although a sharp movement is still not seen in the market, the value and volume of trading have registered a significant growth; however, we are in need of strong economic motives justifying a sustainable growth.
Most companies listed on the Metals group went through positive trades with Shahid Bahonar Copper, Iran Mineral Processing and Alumrad going up more than 4% in addition to Tuka Foolad Investment gaining more than 5% after being reopened.
The majority of symbols in the Automotive space settled with modest losses with tickers active in spare part mfg. area ending in the green, including Tolid Mehvar Khodro, which closed with a buy queue. Iran Khodro Investment Development ticker was also reopened at IRR 3,250, shedding 1.6% lower. Besides, Saipa has made IRR 17,818 bn from sales, equal to 15% of its budget within the period ended 21 June.
Among names in the Paper industry, Iran Carton ticker was reopened 5% higher at IRR 6,211k, having held its extraordinary general meeting and electing its board members.
The whole Computer space ended above its flat line with Iran Kish Credit Card and Iran Data Processing closing with buy queues.
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