Market News

*Following the Central Bank of Iran’s directive on prohibiting banks and credit institutions from non-banking operations, eventually aimed at complying with internationally accepted standards to accelerate the resumption of its activities with their foreign peers, Bank Saderat announced the plan to divest its stake in 5 companies. Consequently, 98% of Sepehr Energy (energy sector), 95% of Tose’e Sepehr-e Tehran Investment, 100% of Tose’e Sepehr-e Mandegar-e Khorasan, 100% of Tose’e Sepehr-e Fars (all in housing and construction sector), and 65% of Sepehr-e Jam Tourism Investment (tourism space) will be offered by this bank.

*Finally, after a series of negotiations held by Central Bank of Iran’s officials and other diplomatic channels, the problem of money transactions and accounts closure for Iranian businesses in China have been resolved. The problem had been originating from severe anti-money laundering regulations and measures by the Chinese party in compliance with the FATF.

*As the largest iron ore concentrate and pellet producer in the country, Gol-e Gohar Mining & Industrial Company is to issue $66 mn worth of Ijarah Sukuk in the next week; the raised funds will finance the purchase of machinery and equipment for its ore concentrate production line. Furthermore, President Rouhani will pay a visit to Sirjan tomorrow to inaugurate new production lines in this major company.

In the Market

Announced to be done today, Iran Khodro, in the Automotive space, cancelled its 15.58% block trade; this news dragged most symbols into the negative area with Iran Khodro (-4.23%) and Iran Khodro Investment Development (-3.65%) going under heavy sales pressure. The rumor has it that Iran Khodro is to raise its capital by 260% based on its asset revaluation. A few companies in spare part mfg. field like Iran Tractor Forging (+3.3%) and Iran Spare Parts (+4.9%) managed to closed with good gains. Saipa Azin (+3.5%)also saw rise in demands at the end of the session.

The non-release of their Q3 financial reports along with the fall in global oil prices droved the majority of tickers in the Oil Products space into the red. After being halted in the previous session due to experiencing 20% growth and making clarification on its rise in 4 consecutive sessions, Pars Oil returned to the market at IRR 6,435 with a heavy buy queue, 10% higher. Oil Industry Investment also went up by 3.8%.

Being in danger of being delisted and posted with a Suspension sign after making loss for two consecutive years, Esfahan Steel Company, in the Metalsindustry, announced its 90% capital raise plan to reach its capital to IRR 63000 bn; it will be done based on asset revaluation aimed at correcting the company’s financial structure; the ticker was halted in today’s session. Apart from Zangan Zinc Industries (+4.97%) and Middle East Mineral Industries (+3.33%), nearly the rest ended beneath their flat lines. Such a negative sentiment dominated the Iron Ore space as well.

Source:

2018, Banks Sticking with Central Bank of Iran’s Directives, Wednesday, January 31, p.1,<https://agahgroup.com>