Iran Banking Sector More Active in Europe!
– The recent blockage of some Iranian petrochemical companies’ bank accounts in China, which were then, experienced by Iranian citizens and students there, took negotiations and talks to be resolved; it appeared that they originated from severe implementation of FATF regulations and did not only focus on Iranians but they were applied to other countries wanting to open an account or transfer money. After that, similar problems were observed in regard with bank accounts in Halkbank Turkey and NBD banking group UAE; while the former were discussed and resolved over the Turkish president visit to Iran, which also resulted in negotiations for building correspondent relations with other Turkish banks as well, the latter was announced to be the only bank in UAE causing such a problem, which does not play any role in Iran-UAE banking relations and transferring money to this country is still done through the banking system. In line with Iran Banking Sector continuous attempts to ease banking hurdles and now following the visit to be paid by the British Foreign Secretary to Iran, it seems Iranian officials are counting on holding negotiations aimed at reaching mutual agreements to facilitate transactions and encourage investment and economic relations to address issues such as extension of finance credit along with easing conditions for Iranian banks’ branches in England to become allowed to use British pound in their transactions.
– Today, head of Iran Fara Bourse, Amir Hamooni, announced that Islamic Republic of Iran Broadcasting (IRIB), which hold the monopoly of domestic radio and television services in Iran, is to issue Sukuk Al Manafa’a on IFB market securing some of its future advertising revenues sooner. It seems that the Fiqh committee of SEO already approved the issuance of such securities. The Iranian debt market is on the diversification path. The below image is to demonstrate the mechanism of issuing Sukuk Al Manafa’a.
In the Market
Contrary to their rally the other day, the Oil Products space started rather negative, entering into a correction phase, which is estimated by many to turn around in the short term. Esfahan Oil Refining, on the other hand, managed to keep its growth. Having faced less interest from some certain Asian clients in purchasing its crude oil, Iran is now determined to find new European clients; such declines for instance by South Korea started after the US offered cheaper prices on its crude to limit Iran oil export.
In tandem with global commodity price growth, nearly the entire Metals sector saw a rise in demand in the first half hour led by Iran Aluminum. Arfa’ Steel & Metal, Calsimine, Zarin Ma’dan Asia, Iran Alloy Steel and Iran Mineral Processing were among those hitting their highs.
Such an atmosphere spread to the Iron Ore group as well, dragging the whole space into the green zone such that Gol-e Gohar Mining & Industrial, Mines & Metals Development, Iran Manganese Mines and Saba Noor Mineral & Industrial also touched their ceilings.
Excluding Tolid Mehvar Khodro which gained more than 4%, the majority of names in the Automotive industry were dominated by a slim positive sentiment, led by Saipa and Iran Khodro. With IRR 952 bn in capital, Charkheshgar has applied an 18% negative adjustment in its audited financial report, dragging its previously estimated IRR 51 EPS down to IRR 42, having made IRR 52 loss per share in the first half.
Having stopped their recent rally specifically after the earthquake 10 days ago, the majority of Cement tickers went through sales pressure with Kurdistan, Shahroud and Shomal Cement shedding nearly 5%. Unlikely, the majority of names in the Construction group settled with slim gains.
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