SEO to Lift Limits in the Capital Market
In a meeting held by the Securities and Exchange Brokers Association, Dr. Mohamadi, the Head of the Securities and Exchange Organization of Iran stated lifting the current limits in the market as the top priority of this organization with the help of the Securities and Exchange High Council. He promised the formulation of a reform bill for the capital market by the SEO. Insisting on the importance of finding ways to increase liquidity, he announced that the bylaws concerning the halting and reopening procedures of tickers will be approved soon, which will definitely add to the volume of trades. Furthermore, he mentioned revisiting the trading platforms as another goal saying that the trading instruments must be diverse enough to attract to and keep capital in the market.
A CBI official announced the start of credit rating banks in October-November 2017. Calling it as the most important concern of this organization, the current CBI supervision method alone was also stated to be insufficient, which calls for supplementary qualitative and quantitative measures to detect banks’ risk levels to a more precise extent; having been said, banks will divide into 3 groups with low, high and mid-level risk. An up-to-date supervision model in line with what is currently used in international banks has also been designed and raising transparency level in the banking network is also under process, all in all aimed at turning the potential risk away from banks to a considerable extent.
In the Market
Tickers in the Automotive industry started to take a rising approach, headed by Saipa (+3.25%) and Saipa Diesel (+4.95%); despite the recent positive trend seen, companies in the spare part mfg. area mostly ended beneath their flat lines.
It seems that names in the Construction industry have started their ascending trend; the whole industry, but Abadgaran-e Iran Welfare and Tourist Corporation (-3.67%), ended above their flat lines, led by Kerman Province Civil and Development Investment.
Nearly a similar trend was seen among symbols in the Cement space, headed by Hegmatan Cement (+2.76%) and Sharq Cement (+3.28%).
Despite the decline in metal prices, global oil prices experienced a growth; this dragged names in the Oil Products group into the green zone, led by Lavan Oil Refining.
Tickers in the Food and Beverages sector went through positive trades with many closing with buy queues. Names like Pegah-e Azarbaijan-e Qarbi, Industrial Behpak, Kalber Dairies, Pegah-e Khorasan Dairies also faced buy queues; dairy products company owners are demanding for a price increase based on the rise in transportation, energy and salary prices; new prices will be announced within the next month. Besides, Pak Dairies (+0.17%) has been heard planning to sell one of its owned lands to settle its debt and reduce financial expenses.
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