Central Bank of Iran’s New Directive Effective
* The Central Bank of Iran’s Directive on September 2nd, which addressed high interest rates by setting 15% and 10% limits for returns on long term and short term deposits, not only put the possibility of sudden short term deposits flight into bed, it has also dragged over 20% interbank rates to 17%. As has been previously stressed, this rate contributes a lot to the interest rate on deposits remaining low in the long run.
* In a meeting with the Swiss delegation made up of high ranking banking and economic officials, the Deputy Economy Minster announced the improvements in banking relations, aimed at finding solutions for financing Iranian projects, between Iran and Switzerland.
* On the sidelines of the 17th International Electricity Exhibition of Iran, the Deputy Iranian Energy Minister quoted the Japan’s ambassador to Iran saying the allocation of credit line worth $10 mn by the Japanese government to companies interested in making investment or entering into joint venture with Iran; he added that Japanese companies look for opportunities to invest in Iran’s power industry.
In the Market
Markets have pushed oil price up to $64 per barrel mostly due to political tensions in the Saudi Arabia in addition to prolonging production cuts agreed by OPEC; there are experts who believe in $70 a barrel oil. Strengthened by the rise in dollar price, oil refineries in the Oil Products sector are expected to witness growth. The whole sector, but Pasargad Oil, finished above their flat lines.
The fall in global metals markets, the majority of symbols in the Metals and Iron Ore space were traded beneath their flat lines. Iran Ferrocilis (3.13%) in the former and Iran Manganese Mines (3.06%) in the latter were the top gainers.
Following the news on the Iraqi government raising import tariff on Iranian dairy products by 2.5 times, an official in the Ministry of agriculture announced negotiations are underway to solve this problem. A rather negative dominated the Food & Beverage space.
Having been reopened in previous session 15% lower, Arak Machinery Mfg. Company heavy sales pressure caused by one of its major shareholders in yesterday’s session sent negative signals to the market and therefore, the ticker, listed on the Metals Products industry started the session with a 17 mn sell queue and kept it through the closing bell.
The buy queue formed in Iran Construction Investment pushed other names in the Construction group into the green area such that Zayande Roud Housing Investment, Sakht Ajand, Pardis Housing Investment and Tehran Housing Investment all finished more than 2% higher.
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