Foreign Investment in Iran Grew
* According to the government spokesman, foreign investment in Iran has grown 10 times since the JCPOA was hit in 2015 to surpass $13 bn, with most funds focused on chemicals, steel, mining and medical devices sectors.
* The Central Bank of Iran has announced the acceptance of non-cash collaterals for foreign loans, including opening letters of credit and issuing guarantees in foreign exchange, by banks which have successfully met the required criteria and regulations.
* The EU Commissioner for Agriculture and Rural Development, as a member of the delegation visiting Iran, talked about the obstacles ahead of relinking Iranian banks with their foreign counterparts, saying that the two year (since the JCPOA was hit) is not enough for Iranian banks reaching the latest international standards and promising his best to help resolve such issues.
* The recent political concerns and pressures over Iran, mostly predicted to originate from the US backing down from the JCPOA, resulted in the Korean Securities Depository putting an end to its cooperation with the Central Securities Depository of Iran (CSDI). Based on the agreement signed in the previous year, fixed-interest securities, including Islamic Treasury Bills, were supposed to become listed on Korean exchanges.
In the Market
Iran light crude oil reached $60.04 per barrel going up by $2.59; heavy crude oil also experienced similar growth to stand at $57.47 per barrel. The Oil Products group, however, missed expectations; names either ended in the red or settled with slim gains.
Metal prices seem to bounce back such that copper prices reached $ 6842. It seems that limitations put on steel production in China are to become in effect soon; this has positively affected names in the Metals space.
Esfahan’s Mobarake Steel (1.84%) has estimated to make IRR 546 EPS for the current FY, positively adjusting its previous projections by 1% having covered 56% of it equal to IRR 306. The reason for this slim rise is the increase in its sales prices; 15 mn of its shares shares were block traded in the retail market at IRR 2,325, 1.62% higher. Another block trade, 7 mn shares, was also done in Calsimine ticker at IRR 4,180, 0.8% higher
A rather negative atmosphere, however, dominated the Iron Ore space, headed by Iran Manganese Mines, which started with a buy queue; it failed to keep it through the closing bell and started negative trades in the final hour; it finished at +3.66% eventually. An official in Chadormalu Mining & Industrial (-0.06%) has estimated the need to IRR 10,000 bn worth of investment in 2 development plans, one of which is the building of a new pellet production unit with 4 mn ton in capacity per annum; the share was traded at IRR 1,604 with not much change.
Companies in the Banking sector went through balanced trades, although 48.9 mn shares of Bank Khavar Miane (Bank Middle East) were block traded at IRR 1,781 in the retail market, 3% lower. Bank Mellat is planning to issue certificates of deposits worth IRR 18 trillion within the next 5 trading days with annual 16% interest rate to be paid on a monthly basis; they will also be repurchased before their maturity (less than 1 year) based on a 14% annual yield.
Unlike the recent sessions, the majority of tickers in the Construction space failed to enter into the green zone, although Fars Development & Civil could go up more than 2%. Tous Gostar Urban Development (-0.05%) has been heard to be planning to divest its own and subsidiaries’ buildings.
Despite a weak start, companies in the Automotive group saw a rise in demand, led by Pars Khodro (3.82%) and Saipa (0.86%); the more we approached the final hour, the more demand grew, specifically among spare part mfg. companies; Tolid Mehvar Khodro finished with a buy queue. An official announced the upcoming rise in tariff over automobile import within the next 2-3 weeks. Niroumohareke (0.45%) has managed to cover 58% of its budget over the past 7 months with its sales hitting IRR 3552 bn; it has also made IRR 598 bn in the 1 month ended Mehr (23 Sep- 22 Oct).
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