Interest Rate to Climb Down
– On a meeting between state-owned and private banks’ executives held on 7 June 2017, bank interest rate will be decided for the current year, which now hovers around 15%; this rate was dragged down from 18% in order to be in line with the inflation rate at the same time last year.
– Following the announcement of the possibility of banks’ mergers to make their financial statements compliant with international standards, mainly due to their low capital adequacy ratio, by the governor of the Central Bank of Iran, the head of Majlis Economic Commission stated his support to this proposed measure, which is specifically aimed at enabling banks to benefit from the capacity to engage in foreign transactions in the post-sanctions era.
In the Market
Traditionally, the value and volume of trades drop in Ramadan; considering the 2 day holiday early next week, more selling pressure was also seen. Similar to the previous session, names in the Sugar industry went through positive trades and some like Shahd, Lorestan Sugar and Shirin Khorasan Sugar closed with buy queues.
Trades among Automotive companies grew compared to the previous session and names active in spare part mfg. area settled with slim gains, although Iran Tractor Motorsazan finished 4.3% higher.
With commodity prices descending, most names in the Metals industry ended beneath their flat lines; Yazd Alloy Steel Industries, however, could reach from the red territory to close 2.5% higher. Benefiting its shareholders with high return in the past 2 months, Shahid Bahonar Copper ended 4.3% higher as well.
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