IMF Hailing CBI Efforts in Iran’s Economy
* Over its latest consultation mission to Iran, the International Monetary Fund praised Central Bank of Iran’s efforts to confront with uncertified credit institutes, which had become competitors for legitimate banks in attracting funds; curbing the inflation to hit 1 digit figures was also another point approved by this body. In order to maintain the stability of macroeconomic indicators, the IMF also advised the CBI to closely monitor foreign exchange rates along with implementing the required reforms in the banking sector.
* As the result of the Tehran Chamber of Commerce, Industries, Mines and Agriculture meeting with the Central European Nation’s parliamentary officials in Switzerland, one Swiss parliament member expressed hope over the entrance of smaller Swiss banks into Iran, announcing that being afraid of US punishment, two major Swiss banks are facing difficulty to enter into business with Iran.
In the Market
After a 55% return since its IPO, Hi Web (+3.94%) trades, listed on the IT & Communication space, became balanced in today’s session, although it faced buy queues at IRR 4,663 for several times. As valuable as the share sounds considering the company’s future plans, the interest in buying this share put a huge sales pressure on other names; many assume that the share will hit IRR 5,000 at least. Threats regarding the JCPOA by the US on pulling out from the agreement and Dr. Zarif responses, however, is the other reason behind today’s red session.
Commodity, mostly metals, prices were on an ascending trend with zinc reaching $3,167 and copper hitting $6,532; oil prices are still also hovering around $56. The pressure, unfortunately, neutralized such positive news.
At the end of today’s session, the whole Oil Products group, but Sepahan Oil (+0.57%), finished beneath its flat line settling with slim losses, led by Tehran Oil Refining (-3.28%).
The majority of Metals space names also went under sales pressure with Esfahan Steel shedding 4.5%.
As a major and effective industry in Iran’s economy, Iran Steel Industry managed to register a 15.7% growth in its 8-month production while the global steel industry experienced a 4.9% rise in the said period.
Following the Middle East Mining Industries Development Company’s (-1.38%) efforts to be listed on the London Stock Exchange over a 2-year period, a delegation made up of LSE officials is to pay a visit to the company in a few days to review the company’s IFRS based statements among other things.
However, IMIDRO announced that mineral products export value hit 3.6 bn in the first 5 month of the current year compared to the $7 bn export value in the same period last year. The whole Iron Ore industry, except from Saba Noor Mineral and Industrial (+0.3%), also were traded negatively.
Despite the recent high volume trades done in the Automotive group, major tickers fell with Saipa, Iran Khodro and Zamyad nearly facing sell queues. Tolid Mehvar Khodro was the only ticker closing with a buy queue, followed by slim gains in Electric Khodro Sharq and Saze Pouyesh.
Attending Tehran to sign an MoU, the Head of France’s Union of Rubber & Plastics expressed readiness and interest in training Iranian industrialists and engineers to make car parts with high standards in the country.
Intending to push the Housing Sector, the Minister of Roads and Urban Development heralded talks and attempts to redefine regulations to activate leasing companies in the housing sector. Shahed Investment led the Construction industry in terms of the trading value finishing +4.4% higher; Tehran Renovation and Construction (+1.02%) was another symbol ending in the green. Other tickers went through rather negative trades.
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