SEO’s press conference on the latest Iran Capital Market status!
– In a press conference, the Head of the Securities and Exchange Organization (SEO) of Iran briefed the measures taken along with the progress made in the recent past in Iran capital market. Referring to the trading core upgrade since Saturday December 16th along with the launching of a comprehensive monitoring system, he called it as a pre-requisite for implementing the new directive on halting and reopening of the tickers. He, then, talked about obliging fixed-income funds to decrease the 90% share of banking deposits in the portfolios to 50%, which will create positive movements in Iran capital market; that share hovers around 70% right now. Counting steps taken, including the lowering of taxes and commissions, launching book building method for IPOs, deepening the debt market and lowering their yield ratio, he called for more attempts in attracting foreign investment, which itself necessitates higher level of transparency and issuing IFRS-based reports, he stated that 3 rating companies have received licenses and added they are eyeing the Budget Bill for 2018/19 to see if the tax exemption from asset revaluation will be extended or not, as it plays an important part in Iran capital market. Mr. Mohamadi eventually advised interested investors to base their investment decisions on through analysis and do not get lost in the recent excitement in the stock market leaving their analysis shield aside.
– Aimed at deepening cooperation and facilitating trades, most specifically, removing problems ahead export to Qatar, representatives from Bank Saman and Bank Pasargad, as major Iranian private lenders, have been in talks with Qatar National Bank; using local currencies in bilateral trade has been among the topics discussed. Bank Melli is now trying to build correspondent ties and Bank Saderat, which is the only Iranian bank with a branch in Qatar, is trying to resume its activities as well.
Tehran Stock Exchange on leash after meteoric rise!
In the Market
The recent stress on the privatization and divesting the government’s shares in Iran Khodro and Saipa Group along with the high level of tariffs proposed for importing automobiles into the country have directed investors’ attention to the Automotive group. Saipa CEO announced the transfer of “Rich” pickup production line to Zamyad Company. In addition, the SEO chief’s announcement on the probable extension of tax exemption on asset revaluation will positively move this sector. Except from a few like Khavar Spring Mfg. (KFAN1, -4.9%), the entire sector finished with significant gains, led by Iran Khodro (IKCO1) and Saipa (SIPA1)
The SEO chief statement on the reopening of banking tickers as soon as they provide their IFRS based financial reports resulted in the Banking group seeing a rise in demands. Bank Mellat (BMLT1) and Bank Middle East (BKHZ1) closed the session hitting their highs.
Referring to German, French, Italian, Chinese and Korean companies’ interest in investing in the country’s infrastructure, a member of Iran-Germany Chamber stated German companies’ special interest in the petrochemical space; in this regard, different MoUs have been signed for their presence in petrochemical development plans. At the end of today’s session, nearly the whole Chemicals group ended beneath their flat lines; the exception was Nirochlor (NKOL1) which finished with a buy queue.
The whole Food & Beverages space settled with good gains with Azerbaijan-e Sharqi (GHPZ1) ending with a buy queue. Following the goal of exporting dairy products to Russia, the first series of Pegah-e Golpayegan (PGPZ1) products were announced to be exported, which included 20 tons of 4 types of cheese; the ticker went up 2.4%.
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