Iranian Banks Waiting for CBI Approval
* Banks, awaiting the approval of the CBI over their financial statements, are heard to postpone holding their general annual meetings. The CBI had obliged banks and credit institutions to publish their IFRS-based statements and footnotes for the FY ended 20 March 2017, seeking the complete implementation of other banking requirements like the Basel Accords as well; any failure to meet the CBI demands will lie with the banks’ CEOs and board members, not allowing them to hold their annual meetings. In this regard, however, Bank Hekmat-e Iranian and Bank Ayande received the said permission, having met the requirements.
* As the first company returning into Iran after the lifting of sanctions in the insurance space, German Munich Re formally entered into business with Saman Insurance Company, having signed the contract, which will cover variety of risks, including life insurance and capital formation categories up to 1 million euro.
* China is to finance the to be constructed Tehran-Qom-Esfahan high speed railroad project, which was signed in 2015 worth about 1.8 billion euro, although the value might increase.
In the Market
The market experienced proper conditions within the past week mostly due to the Q1 company reports exceeding investors’ expectations, the adjustments in the oil products space (mainly oil refinery companies) intensified with the growth in metals prices and the injection of fresh money, pushing the All-Share index 653 points up (equal to 0.8%) to enter the 80,000-point area.
This positive atmosphere spread to the Construction sector, led by Iran Construction Investment and the Cement industry led by Sharq Cement, pushing the majority of their tickers into the green zone.
In the Computer space, half symbols went through positive trades, largely influenced by the newly entered ticker Beh Pardakht-e Mellat, which faced a heavy buy queue at IRR 19,293. Iran Kish Credit Card also faced a buy queue after the issuance of the 53% capital raise plan based on shareholders’ paid-in capital and claims.
The majority of the active symbols in the Oil Products group settled with modest gains, although Oil Industry Investment lost more than 3%. In their general annual meetings, Lavan Oil Refining and Esfahan Oil Refining approved the distribution of IRR 520 and IRR 250 DPS among shareholders.
Among symbols in the Iron Ore sector, Gol-e Gohar Industrial & Mining ticker was reopened 15% higher at IRR 2300.
A rather positive trend was also observed in the Metals space with Navard Aluminum and Zangan Zinc Industry closing with buy queues. Besides, Shahid Bahonar Copper Industries ticker was reopened at +27% at IRR 5399.
The positive atmosphere in Saipa general annual meeting (distributing IRR 25 DPS) was reflected in Rena Investment facing a buy queue at IRR 113 after 11 mn shares changed hands; putting an end to Pride production within 1 year and starting to sell Quick in the next 2 months along with lowering the interest expenses are of the major plans in Saipa Company. Iran Khodro also held its annual general meeting. All in all, demand rose in the Automotive space.
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