Foreign Exchange Rate to Finally Unify
– An official in the Central Bank of Iran announced the unification of the foreign exchange rate until the end of the current year; this, however, depends on Iran’s place in the FATF perspective to a great extent such that changing the country’s status from “non-cooperative” to “cooperative” can play an important part in developing correspondent relations between Iranian banks and their foreign counterparts. Being ready for this task since 2 years ago, this official stated that the reason for this delay has been waiting for banks to establish correspondent relations to a level which allow them to easily do treasury management in foreign currency.
– With the current NPL ratio in the country hovering around 8.8%, Bank Melli has managed to decrease this rate in the FY ended 20 March 2017 by 1.2%; it now stands at 7.8%. Intending to apply financial restructuring to approach international banking standards, this bank is to establish a debt collection firm by the end of the current year to lower this ratio even more.
- In its unaudited financial report, National Iranian Copper Industries has made IRR 323 EPS over the FY ended 20 March 2017, covering 118% of its estimates; during this period, the company registered a 15% capital raise plan and managed to grow by 199% with its new capital compared to the same period last year. Its net profit, however, experienced a 243% growth.
- In its annual general meeting held on May 21st, Omid Investment Management Group distributed IRR 260 dividend.
In the Market
The head of the Central Insurance of Iran announced 2.2% as insurance penetration ratio in the country in 2016/17 and asked insurance companies to put more effort in introducing and developing life insurances among people. Names in the Insurance space ended the session mostly positive led by Saman Insurance (4.7%); Amin Reinsurance (3.8%) and Day Insurance (2.4%) were among the other gainers.
Among names in the Chemicals industry, Tuka Paint Foolad Sepahan faced a buy queue in the first hour while the majority of names went through negative trades.
Tickers like Kerman Province Civil & Development and Iran Construction Investment in the Construction sector faced buy queues nearly from the start and other like Sakht Ajand (3.3%) and Abadgaran-e Iran Tourism and Welfare (3.65%) ended above their flat lines too.
With oil prices decline to below $46 in global markets, most names in the Oil Products industry settled with modest losses, although Behran Oil and Shiraz Oil Refining went up more than 1%; besides, 5.5 mn shares of Behran Oil were also block traded in the retail market at IRR 10,448.
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