The Government to Boost Iran’s Banking Sector
* Approving the proposal to help made by the Plan and Budget Organization, the Ministry of Economy and Financial Affairs as well as the Central Bank of Iran, cabinet members have granted permission to the Plan and Budget Organization to settle the government’s debts to banks, up to IRR 146200 bn, using resources deposited in Iran’s excess foreign assets account at the CBI.
* The Chairman of Iran Small Industries and Industrial Parks Organizations announced that more than 11,000 small to medium sized enterprises have received loans worth $1.97 bn within the past 10 months as part of a stimulus plan. Based on statistics, more than 90% of the licensed businesses in Iran fall within the SMEs category. In addition, it has been announced that these enterprises have managed to attract $1.84 bn in foreign direct investment, $653 mn of which have been granted in the post sanctions era.
In the Market
Nearly all tickers in the Automotive space witnessed positive trades. After 151 mn shares of Saipa Group were exchanged, it eventually closed with a buy queue; it has been heard that the French side has purchased Saipa Kashan paying in Euro and the controlling shares of Saipa Diesel have also been sold to Volvo; 11 mn shares of Saipa Group were block traded in the retail market. Iran Khodro and Zamyad were the other tickers closing with buy queues; 12.6 mn shares of Zamyad also were traded in a block in the retail market. The news on the entrance of a French delegation to finalize deals in the Automotive industry positively impacted the whole group.
Known as the market leader, such positive movements in the Automotive space spread nearly to the whole market, pushing other sectors into the green.
The recent approval, which seems to be implemented by the Ministry of Road and Urbanization through Bank Maskan to use the purchased cement in the state civil projects, has positively affected the Cement group in the recent weeks. However, it is worth keeping in mind that this industry is now grappling with low demand and negative competition to which the current season climate must also be added. Experts, but, are optimistic and believe that if such efforts turn into actual results, the cement industry will witness a huge growth. At the end of today’s session, Behbahan Cement, Mazandaran Cement and Shahroud Cement closed with buy queues while Dashtestan Cement and Khazar Cement finished with sell queues.
Furthermore, the Iranian Mercantile Exchange is to witness the trading of cement in its markets, both on the domestic and export boards, as of April-May 2017.
Names in the Chemicals industry also went through positive trades such that Tuka Foolad Sepahan, Kharq Petrochemical and Farabi Petrochemical faced buy queues. The ticker of Zagros Petrochemical was halted due to applying adjustment on its estimates for the current year; the company has witnessed growth in its sales mainly due to the rise in Methanol prices.
Among symbols in the Oil Products space, Lavan Oil Refining (Shavan) and Oil Industry Investment were highly demanded while other tickers were traded in a balanced trend. It has been heard that Shavan is to raise its capital by 100% relying on revaluation of its assets.
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