- As the governor of Turkey’s Central Bank has announced, restrictions over Bank Mellat’s re-connection to SWIFT has been removed in the post sanctions era, paving grounds for the acceleration of banking cooperation between the two countries. Mr. Erdem Basci has also insisted on the activation of more branches of Iranian banks in Turkey in order to normalize commercial relations and facilitate correspondent banking.
- Taking the ascending trend of the capital market in the second half of the previous Persian calendar year into consideration, capital market practitioners have predicted a highly profitable market in the current year, benefiting investors with a proper return. Referring to the newly created economic atmosphere, especially after the smooth but tangible economic growth in the country and the impact of JCPOA specifically in lowering companies’ costs, they believe that those investors with mid to long term viewpoints can gain up to 25%, mainly relying on fundamental analysis and patience, which is more than that of the parallel markets.
- According to the minister of Roads and Urban Development, attempts have been done to increase the repayment period of housing facilities and decrease the lending rate. Standing at 13%, Bank Maskan’s enjoys the lowest rate among all banks; in this regard, Mr. Abbas Akhoundi has stated that such a rate can be reduced even more. He has also mentioned the bank’s capital raise from $0.87 mn to $2.89 mn, if approved by the Parliament, as the pre-requisite to change the respective bank’s structure into a development one.
- In its general meeting to elect the fifth member of its board with 87% of its shareholders present, Mr. Ali Rastegar as the CEO of Bank Mellat, with $115.45 mn in capital, has announced the 10% reduction in the bank’s outstanding claims in the previous fiscal year, irrespective of an increase in its services costs, which implies the bank’s credit health.
- Despite its request to raise its capital by 53%, the Securities and Exchange Organization of Iran has issued the permission for Mellat Insurance Company to raise its capital only by 10%.
In the Market
Most names on the Automotive space went through positive trades. Topping the sector in terms of the highest traded volume, Iran Khodro Company gained 2% after more than 64 mn shares changed hands. Symbols such as Zamyad Company, Saipa Company and Iran Khodro Diesel Company ended with buy queues. Pars Khodro Company was another share experiencing a growth (+2%). Coordinated by the Securities and Exchange Brokers Association, around 100 capital market practitioners paid a visit to Saipa production line aiming at holding a meeting with senior managers of the company, in addition to familiarizing with the production procedure. In this meeting, positive events and plans on Saipa Company as well as the news about the purchase of 17% of Iran Khodro Company’s share by FIAT Company and the receipt of a formal permission by French Peugeot Company to invest in Iran were discussed, which has the potential to stabilize the Automotive sector’s leading role in the market.
A great number of tickers in the Metals sector ended below their flat lines. Esfahan Steel Company, however, grew by 3% and after trading more than 54 mn shares, it topped the sector in terms of the highest volume traded; in addition, a block trade was also conducted where 15 mn shares of this share changed hands between institutional investors. Hormozgan-e Jonoub Steel Company and Gazloule Company also ended with buy queues. However, National Iranian Copper Industries Company dropped 3% and Khorasan Steel Company faced with a sell queue.
Rather balanced trades were seen among symbols in the Chemicals industry. Fars Chemical Industries Company and Pars International Products Company faced with buy queues while Sina Chemical Industries Company and Pakshoo Industrial Group hit their lows. Furthermore, Petrochemical Industries Investment Company was titled as the highest volume traded share. As the CEO of the National Petrochemical Industries Company has stated, the production capacity of this sector is to increase by 7 mn tons in the current year after launching 13-14 projects. Besides, he announced the negotiations with foreign companies to cooperate in selling and exporting products and transferring technology.
The recent rise in global oil prices resulted in positive trades among most names in the Oil Products group. Bandar Abbas Oil Refining Company led the sector and after trades worth about $1.62 mn, it became the 4th influential listed share.
Among symbols in the Banking sector, Bank Hekmat Iranian, Bank Pasargad and Bank Karafarin hit their highs and faced with buy queues, while most others ended at the 0 territory. Besides, although reopened with a 2.5% growth, Bank Mellat experienced a fall in its price at the final hours of the session.
Finally, despite a rather descending trend among symbols in the Insurance and Pension Fund affair, Dana Insurance Company faced with a buy queue for the third consecutive day. Alborz Insurance Company was also crowned as the highest volume traded share after 16 mn shares changed hands.
TSE at a Glance
Summary of Trades
TSE Major Sectors’ Daily Performance
Trading Halts and Reopenings
IFB at a Glance
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.
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