Market News

– Aiming at creating stronger and more efficient Iranian Banks along with addressing their capitalization needs, an official in the Central Bank of Iranannounced the merger between Iranian financial institutions where Bank Ansar will take over Mehr Eqtesad Bank and Samen financial institute and the process is estimated to complete until the end of Spring 2018; the next wave of M&A will address tow financial institutions of Qavamin, Kowsar and Hekmat-e Iranian bank.

– A memorandum of Understanding was signed between the Tehran Stock Exchange (TSE) and Kish Free Zone to establish the first International Financial Center in the country, which will seek the absorption of foreign capitals along with facilitating and accelerating their activities in this area; besides, the Kish Free Zone Organization has also expressed interest in underwriting Sukuk Musharaka issued by companies operating in Kish through TSE’s Kish trading floor; there are also talks on listing such companies on the stock market as well.

In the Market

Iran equities got off to a good start today, but the major indices saw a bloody day when banking tickers got reopened and caused them finishing the session on a broadly lower note. TEDPIX declined by (-0.82%) while IFEX ended the day with a slim gain of only +0.23%.

The possibility of reopening tickers of Bank Parsian and Bank Saderat in the Banking space imposed sales pressure to the Banking group. Holding IRR 57,800,000 mn in the capital, Bank Saderat has increased its estimated loss per share from IRR 245 to IRR 788 (-222%); it has covered IRR 525 (67%) in the 9-month period; the ticker was open 50% lower at IRR 500 and dragged the TEDPIX down by 730 points. Bank Parsian also returned to the market after its -139% EPS adjustment at IRR 1034, shedding 14%. Besides, the CEO of Iran Fara Bourse announced the Central Bank of Iran consent with banks’ activities in venture capitals.

Following the commodity price rise in global markets, most names in Iron Ore and some in Metals spaces were traded positively.

The Oil Products group also went through positive trades, which failed to keep them through the closing bell.

After a rather week start, the Automotive group started to see more demand. Iran Khodro saw institutional support as well; its 50 mn share block worth IRR 139.9 bn were offered as well.

Finally, names in the Food and Beverages space saw positive trades following the previous session.

Source:

2018, Iranian Banks to merge!, Wednesday, March 14, p.1,<https://agahgroup.com>