Iran Banking Sector Restoring Past Links
– In attempts to internationally integrate Iran banking sector, Iran has entered into talks with Russia testing their banks’ debit card systems; this will enable customers to pay amounts in foreign currency and withdraw the equal amount in IRR. Not only will money transfer problem get solved, this will also develop tourism facilities throughout both countries. Furthermore, over the meeting between Iranian and Pakistani officials, the resumption of banking ties between the two countries were also discussed.
– While there are impediments ahead financing railway projects in the country despite the significant development in its infrastructure, launching a leasing company to provide finance in addition to using foreign funds has been on the agenda. In this regard, President Rouhani has recently permitted the payment of $500 mn from the Tose’e Melli Fund (National Development Fund of Iran (NDFI) to complete the remained projects in the railway industry. The said company is estimated to become operational by the end of the current year.
In the Market
The Benchmark Index has been challenging its flat line over the past sessions, entering into new channels and hitting new historic highs, specifically underpinned by global commodity price growth. In today’s session, the Persian Gulf Petrochemical weighted on the Overall Index session the most.
Tickers, mostly those active in spare parts production, in the Automotive space went through balanced and low volume trades, although the upcoming visit by President Macron might be seen positive for this space. Besides, it has been heard that Iran Khodro board of directors is planning to raise the company’s capital through revaluating its own and its subsidiaries’ assets.
The Metals sector settled with moderate losses. The Global Steel Association announced Iran’s trade balance in 2016 reached its 10-year high by 971,000 tons; it was so while the country’s trade balanced had been registered at -11.5 mn tons in 2007. Iran Ferrosilice (FRIS1) and Navard Spare Parts (NGFO1), however, hit their highs in their final trades.
Officials announced the 5% price growth in home appliances produced in the country, mostly due to the USD/IRR rise and consequently, more expensive raw materials. This has the potential to move the Machinery and Equipment group upward, which went through balanced trades today.
After posting gains for 5 sessions in a row, Sabzevar Cement (SBZZ1) started to see sale pressure in the middle of the market and closed at +2.8%. The rest of the Cement industry except from Behbahan Cement (SBHN1) ended in the red.
The recently offered ticker of Omid Investment Bank listed on the Financial space finally started its balanced trades with 40.8 mn shares changed hands in the first half hour, after realizing some gains by its shareholders since the IPO with nearly 16% return; however, the ticker bounced back and faced another 60-mn share buy queue again.
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