Putting an End to Non-Banking Activities
– In its latest directive, the Central Bank of Iran explicitly prohibited banks and credit institutions from non-banking activities and their previous involvement in investment funds or trading any kind of securities by 2020. In order to lead them towards their original task, i.e. financial intermediary, this is aimed at increasing oversight along with limiting risks attached to their investment practices as well.
– According to the deputy minister of roads and urban development, private investment in the transportation sector has witnessed a 70% growth over the previous Persian calendar year, which is mainly due to the economic stability dominating the country since the 11th administration took office and applied its policies to curb the inflation.
In the Market
It has been heard that following the reopening in the post-JCPOA atmosphere, the first representative office for Bank Saman was opened in Rome, Italy; it will provide foreign investors with advisory and investment as well as banking and legal services. At the end, companies present in the Banking group went through balanced trades with Bank Karafarin (1.75%) as the top gainer and Bank Tejarat (-2.64%) as the top loser; besides, 10 mn shares of Bank Mellat were also block traded in the retail market -2.83% lower at IRR 1,030.
An official in the Cement sector announced targeting new export destinations like Egypt, Kenya and Ghana. This dragged nearly the whole space into the green area facing many like Uremia Cement, Kerman Cement, Tehran Cement and Hegmatan Cement with buy queues. With such positive sentiment spreading to the Construction group, the majority of companies also settled with modest gains. Zayande Roud Housing Investment and Iran Construction Investment were the top gainers.
Oil Prices approached the $54 area; however, symbols in the Oil Products industry witnessed rather balanced trades.
The sentiment over the Automotive group was inclined towards the green area with some spare part mfg. companies like Ravan Fanavar Industrial Engineering and Mehvarsazan Iran Khodro gaining more than 4%. Despite their negative start, many names like Iran Khodro changed their trend towards the positive zone; the rumor has it that Saipa will be reopened early next week with a good gain, which will affect the whole sector for good.
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