Steps to Heal Banking Relations
– Although large international banks are still cautious of cooperating with Iranian banks, relations between Iranian banks and Malaysian ones seem to get back on track, whose early steps were taken when President Rouhani paid a visit to this country along with an economic delegation. In this regard, after a meeting between Iran’s Chamber of Commerce, Industries, Mines and Agriculture and Malaysian Ambassador to Iran, it was announced that the Malaysian Prime Minister will pay a visit to Iran within a month to assess the banking issues, gain information on cooperation opportunities and sign the required agreements to take such collaborations to the next level.
– Sitting with the Australian Ambassador to Iran, Mr. Seif stressed on the necessity of introducing Iran’s economy to international banks, calling their cautious behaviors originating from their unfamiliarity with economic structures in the country, which itself stems from low communication among these parties during years of sanctions. Mentioning the steps taken to make Iranian banks compatible with international standards, the Governor of the CBI undermined that there are great opportunities for cooperation with the Australian official confirming the progression in Iran’s economy and the many different collaboration opportunities between Iran and Australia.
– After the CBI governor announcement on the possibility of merging banks and credit institutions as a solution for some institutions’ poor fundamentals, an official in the Banking and Monetary Institute stressed on merging small and unhealthy credit institutions with strong large ones, in order to avoid the creation of a new crisis, mostly the higher bankruptcy probability for the new institution. In fact, the first pre-requisite to do so seems to be credit rating the existing institutions and introducing those with higher credit as merging candidates. Therefore, those with lower credit ratings will require more serious restructurings before being merged with other institutions.
In the Market
The market started the session with the certainty among practitioners that low value and volume trades would be seen due to the 2-day holiday ahead. Iran Khodro ticker was halted after releasing its report, which raised the possibility of positive adjustment in its EPS; the company has realized IRR 147 EPS for the period ended 20 March 2017, registering a 172% growth compared to the same period last year. It has also covered 103% of its estimates. Such positive expectations increased demand among companies listed on the Automotive group, led by Pars Khodro and Bahman Group.
Most names in the Computer space witnessed positive and rather balanced trades with Asan Pardakht-e Persian and Kharazmi IT Development gaining more than 4%.
Finally, with oil prices crawling below $50, largely due to the US government exiting the Paris Environmental Agreement, which alarms an increase in drilling activities in the US, the whole Oil Products industry ended beneath their flat lines with Tabriz Oil Refining and Shiraz Oil Refining losing the most.
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