IME Taking the Initiative
* As the result of an agreement inked between the Head of Securities and Exchange Organization of Iran and the Chairman of Securities and Exchange Board of India, Indian traders are now able to buy Iranian bitumen via the Iranian Mercantile Exchange. Although India has already been one of the major purchasers of Iranian bitumen (nearly half of the 1.2 mn tons of annually produced bitumen in the country), lack of a mechanism for pricing and insuring the quality has led them towards the IME.
* The Iranian financial regulatory body is considering applications for the creation of specialty funds in Iran’s capital market; allowing investors to focus on a particular industry, such a mutual fund will provide investors with more managing power over their investment risks. With its generalities being approved, this plan is in need of SEO board member’s approval to become operational.
* As the Head of the Central Insurance of Iran has said, life insurance premium income has registered an 18% growth in the first quarter of the current year, March-June 2017. Mr. Hemmati also referred to the 40% rise in total amount of life insurance premiums since March 2016.
In the Market
The majority of names in the Transportation space went through negative trades. Having held its extraordinary AGM on electing the company’s board member, Tidewater Middle East (3.06%) ticker was reopened at IRR 3,615 3% lower. After holding its AGM and dividing IRR 17 DPS along with announcing 15% positive adjustment, Rail Seir Kosar (-10.33%) ticker returned to the market 6% lower at IRR 3,470. Petrochemical Transportation and IRI Shipping Lines, on the other hand, faced buy queues.
In the second hour, oil refining companies in the Oil Products space started to witness buy queues. The rumor has it that Bandar Abbas Oil Refining has made IRR 350 EPS in the first quarter and Esfahan Oil Refining has now liberated IRR 9500 bn out of its reserves in the FY 1391, that if true, will add IRR 481 to the currently estimated EPS. Pars Oil and Behran Oil were the two closing beneath their flat lines.
With the majority of symbols in the Metals industry shedding their prices, a few like Iran Alloy Steel and Arfa’ Metal and Steel were the only ones going up more than 4%. Despite the announcement made by the CEO of Esfahan Steel on the company’s success in realizing profit after a few years making loss, the ticker ended -0.99% lower.
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