Iran’s Banking Relations on Amends
- Following an Iranian delegation visiting Seoul, a memorandum of understanding was signed between the head of Iran’s Association of Private Banks and the Chairman of Korea Federation of Banks, which is aimed at expanding non-dollar transactions (euro-based trade) between the two countries as well as providing banking assistance to importers and exporters.
- The CEO of Bank Sepah announced the opening of branches in South Korea, China and Iraq in the near future. In addition to the 34% growth in the bank’s resources in the first 4 months of the current year in comparison with that of the previous year, he also announced the 134% rise in the bank’s activities in foreign exchange over this period. Furthermore, he also referred to the 17% increase in the volume of the facilities granted, worth IRR 433,000 bn.
In the Market
The decline in global commodity prices underpinned the Metals and Iron Ore sectors’ negative performance. Except from Navard and Steel Parts (+0.35%) and Sepanta (+0.21%) in the former, the rest of tickers in both groups suffered a notable decline. Besides, an official in the Steel Association has predicted the 100% steel export over the current year.
Excluding Tuka Paint Foolad Sepahan and Sina Chemical Industries that lost more than 4%, a rather positive sentiment dominated the top weighted Chemicals group, with Fars Chemicals Industries as the top gainer (+3.05%). The rise in methanol prices seemed to exert positive effects on Zagros Petrochemical Company, finishing 1.45% higher.
There are talks on the removal of trade foreign exchange, which can positively affect the Oil Products and Food & Beverages sectors. With names going through rather balanced trades in the latter, Pegah-e Azerbaijan-e Qarbi and Kalber Dairies went up the most.
Referring to the 4% growth in demand and consumption until late August, an official in the Cement space reported no price growth. The majority of names settled with slim losses, except from Lar-e Sabzevar Cement that finished with a sell queue.
Finally, the whole Sugar space rallied today with many like Qazvin Sugar, Sabet Khorasan Sugar and Hegmatan Sugar holding their session high into the closing bell. Shahd Company ticker also returned to the market with no price change at IRR 7,870, after negatively adjusting its estimates by 25%. Sugar prices are heard to go up soon.
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