According to the data published by the Tehran Stock Exchange during the 20 business days between Jun 22—July 22 the value of transactions in comparison with that of the previous month demonstrated a noticeable increase of 111 percent and reached $1,165 billion comparing to $553 billion last month. Plus, the volume transacted peaked 109 percent and arrived at 19475 million shares this month from that of 9297.5 the month before. This is while the average daily volume and value of trading was 861 million and $49.18 million respectively.
Following the announced framework nuclear agreement, the chief central bank of Iran, Seyf, encouraged the banks for being more active and being prepared for the bold international attendances in near future. He also warned that the value of non-current banks’ receivables has been increased significantly and raising capital must be in this year banks’ plans for better capital adequacy ratio. Before the sanctions, Saderat and Mellat banks had the most international transactions and high percentage of their income was from the exchange transactions. Now they are more attracted in the market as the possibility of opening swift gets stronger.
After the nuclear framework agreement announcement the banking and automotive sectors recorded for the highest demand in today’s market. The Saderat bank share, which has dropped to 70 IRR during the last year, jumped today by 4% to 95 IRR and recorded more than 1 bn buy orders on that price. It’s noteworthy to mention that the TSE has price fluctuation limitation between -4 to +4 percent on each share. Today most of the shares witnessed huge buy orders on their highest possible price (+4%) with no sales orders in front (Buy Queue).
- Almost a month ago, The Central Bank of Iran ordered all banks to not to pay cash for checks from Ayandeh, Sarmayeh and Iranzamin banks with value higher than 1,000 IRR mn. However, the central banks restricted the rule for one of these banks again last week and announced that all the banks should not accept the check from Ayandeh Bank with value higher than 100 IRRmn . The Ayandeh Bank’s check can only be transferred to cash in its own branches. It seems that the central bank is so serious in controlling the banks. Pasrgad, Sina and Karafarin banks are among the low risk stocks in this sector.
- In banking sector, interesting technical curves are shaping. The possibility of forming reversal patterns is getting stronger verified by positive divergence. In the last meeting of Money & Credit Council the doubtful receivables were approved to be considered as taxable costs which could be good news for this sector. On the other side, this could be a threat as banks may start to accumulate more reserve. In general, holding this sector’s companies could be one the best choices in this market.