Iran Banking Sector A Gateway to Iran’s Economy
* Referring to the persistence of unresolved Iran Banking Sector issues, whose removal will lead to deeper cooperation, over a meeting hosting Italian investors and politicians in Rome to become familiar with Iran’s Economy and investment opportunities, the Italian party expressed readiness for a strong presence and huge investment in Iran when their lenders will be able to engage in financial relations with Iran, promising taking measures to remove financial problems for Italian companies. It is worth mentioning that the Head of Iran-Italy Chamber of Commerce had promised the solving of such issues within two months after the Iranian delegation visit to attend the Forum on Banking, Insurance and Legal Issues in Rome. Officials also expected the bilateral trade between the two nations to surpass 7 bn euros.
* Following complains over money transactions difficulties experienced mostly by Iranian petrochemical companies, which were not able to transfer money from China to their accounts in Iran, the Head of Iran-China Chamber of Commerce stressed on concerns over money laundering as the source; while the shipment of Iranian products was supposed to be sent from Iran, the companies have done that through Fujairah or Abu Dhabi, which explains why Chinese companies claim that they money should be transferred to UAE and not Iran; legally speaking, they seem to be completely right.
In the Market
With the sales pressure seen in today’s market, the Insurance sector (led by Parsian Insurance) and Investment group (with Sobhan Investment and Behshahr-e Iran Investment as the top gainers) settled with slim gains.
A few tickers in the Food and Beverages space went up more than 3%, including Shahdab-e Nab-e Khorasan, Behshahr Industries Development and Pegah-e Khorasan Dairies.
The Sugar industry, which is known for its negative beta correlation with the stock market, also adopted a descending trend, except from Shirin Khorasan Sugar and Lorestan Sugar, which gained 3.8% and 4.08% respectively.
Despite a negative and week start, many names listed on the Automotive group saw demand rise such that Saipa and Iran Khodro turned into the green zone in the mid-session. A few symbols in the spare part mfg. area like Zar Spring Mfg. and Charkheshgar ended with buy queues.
The whole Iron Ore sector, on the other hand, started the session in the green with Saba Noor Mineral and Industrial Development hitting its high; finally, Iran Zinc Mines Development entered the red zone.
DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.
To contact reporters: Inter@agah.com