- Recently there had been talks of Iranian banks to co-operate with their foreign counterparts, a necessity not viable should the domestic banks do not undergo vital structural reforms, easing harmonization with international standards. Despite regulatory and supervisory constraints in place, namely, anti- money laundry, anti-bribery, anti-corruption plus correspondent banking relations, meant to bring about more adaptation with global measures, e.g., BASEL III, and promote activity in the sector, their small size is a blow in the face. The following table is a live testimony to this allegation, regarding their aggregate amount of assets. As you can see, these figures are neither world class nor even close to that of industry giants, in the region. As an alternative, CBI should raise merging issue with small and mid-sized banks in the near future. Getting large in size, indeed, will be fruitful for the economy in general. In this vein, larger banks, due to their increased capital would be capable of lending facilities cheaper to their clients than smaller ones, thus boosting the economy at large.
- After the sharp decline in the market on 16 April 2016, a growth in volume of trades was observed in the previous trading session which signals a more logical trend in the market sentiment onwards. It also seems that investors are conducting trades with a more analytical and less emotional perspective. As experts believe, a high volume of trades are done by individual investors who have been directly influenced by political and non-political events, including the recent comments made by the CBI governor; however, more stability in economic environment and higher attraction of the capital market in comparison with other parallel ones can maintain this market’s positive movements.
- As foreign investors’ interest in entering Iran’s capital market has increased over the recent months, leading to foreign economic delegations’ many visits, the market even became more attractive concurrent with the Securities and Exchange Organization of Iran joining IOSCO; this raises hopes for more joint cooperation. In this regard, the other day, one of the market authorities announced the actual entrance of the first European Fund in the current week with some $289.19 mn in capital, with a long term outlook which can also add to the positive atmosphere created in the market.
- Chairman of SEO and top Iranian capital market executives hosted authorities from the only regulatory and supervisory body of the entire financial markets in Germany, BaFin, on April 13th. In this meeting issues such the structures of the two capital markets were discussed and hopes were expressed over expanding cooperation ties between the two regulatory bodies.
Behshahr Food Industrial Group has realized a $0.01 EPS during the first quarter of its fiscal year, covering 12% of its estimations; this amount demonstrates a 56% decline compared to the same period last year.
In the Market
Despite the previous session ended in the red, the majority of symbols in the Automotive space ended above their flat lines, facing buy queues. Topping the sector in terms of the highest volume traded, more than 245 mn shares of Iran Khodro Diesel Company traded, more than 90% of it conducted by individual shareholders; irrespective of starting the session with a heavy sell queue, the respective company paved its way towards a positive area and eventually shed 2% in its price. Saipa Company grew 4% and ended with a 1 mn share buy queue. Iran Khodro Company also witnessed positive trades, most of which conducted by individual investors; the respective share went up by 1% at the end. Other names like Pars Khodro Company and Zamyad Company also faced buy queues.
High demands were seen among tickers in the Iron Ores industry. Gol-e Gohar Mining and Industrial Company experienced a buy queue at early minutes of the session; this stock went on a rally after the anecdotal news of exploitations rights of the largest iron ore mine to the respective company broke out.
A great number of symbols in the Metals sector ended in the green. Esfahan’s Mobarake Steel Company faced a heavy buy queue and after trading more than 17 mn shares, it topped the sector in terms of the highest volume traded; the correspondent share gained 4% and finally closed with a more than 34 mn share run-up. Khuzestan Steel Company also went up more than 4% and ended with a 10 mn share buy queue; more than 12 mn shares of this company traded, about 68% of which were conducted by institutional investors. National Iranian Copper Industries also went through positive trades, rising by 1%.
Despite a drop in global oil prices, balanced trades were seen among tickers of the Oil Products affair. Continuing its previously started descending trend, around 14 mn shares of Bandar Abbas Oil Refining Company traded, 96% of which were done by individual shareholders; this stock eventually closed at -0% territory and was titled as the highest volume traded share. Besides, no institutional movements were observed in Lavan Oil Refining Company and it finally grew by 1%. It is estimated that symbols in the Oil Products sector will release rather healthy Q1 reports due to the unification of foreign exchange rate and predicted oil price increase.
TSE at a Glance
Summary of Trades
TSE Major Sectors’ Daily Performance
Trading Halts and Reopenings
IFB at a Glance
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