Iran’s Economic Growth on the Rise
* With 2011 as the base year, the Statistical Center of Iran announced Iran’s economic growth in the first quarter of 2017/18 to reach 6.5%. The details show that the agriculture, industry and services groups have each registered 3.1%, 4.9% and 8.3% growth over the said period.
* Aimed at facilitating banking services to foreign investors in Iran and with their previous cap set at IRR 1 bn, foreigners are now able to have up to IRR 5 bn annual turnover in their rial accounts, according to the new ruling released by the Central Bank of Iran.
* Following the visit paid by the Speaker of National Assembly of South Africa, a meeting was held with the Governor of the Central Bank of Iran, as well, to detect and discuss impediments ahead establishing economic ties between the two countries. In this regard, setting up a joint account between the two central banks has been proposed to facilitate trade transactions.
In the Market
With the Iran Fara Bourse being permitted to provide the trading floor for treasury bills, Iranian Treasury Bills, dubbed as Sakhab5, which will mature on 13 February 2017, started trading. This was aimed mostly to keep an eye on the yield rate to be in harmony with the newly announced 10% and 15% of banking interest rates, in addition to provide a transparent market; it was priced at IRR 926,000.
Today’s participation was a bit light ahead of the extended weekend and except from commodity based sectors, the rest of the market witnessed no significant movements. Although with many commodities entering a correction phase, a rather negative sentiment dominated the Metals space; Shahid Bahonar Copper, nevertheless, managed to keep its uptrend, going up more than 2% in its final trade. Likewise, the Iron ore industry went through sales pressure; only Gol-e Gohar and Chadormalu Mining & Industrial kept their prices above their flat lines, below +1%.
Automobile production in the country has increased by 22.2% on average during Mordad, 23 July- 22 August, which is equal to 143,644 vehicles. However, except from Indamin Shock Absorber, Saipa Azin and Khavar Spring Mfg., other companies in the Automotive industry settled in the red or with slim gains; Motorsazan Iran Tractor and Iran Lent lost more than 4%.
The news on the upcoming rise in sugar prices pushed the Sugar space into the green zone, with Naqsh-e Jahan sugar closing with a buy queue. Shahd Company ticker was supposed to be reopened; but the purchase and sales prices did not match.
Bank Mellat in the Banking group were highly demanded such that it was close to face a buy queue in the last 30 minutes of the session; besides, 36% of its shares, equal to 683,923,757 shares were to be sold to Mehr 78 Back-Up Services Company with each share priced at IRR 1,230.
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