Market News

– Official stats from Iran statistical center show a solid growth in housing sector of Iran’s Economy over a one-year period from Fall 2016/17 to Fall 2017/18. The average price for 1 square meter of residential land in Tehran rose for 16.6% while the growth figure for average monthly rent of apartments is around 14.8%. After a long lasting recession in the sector, the trade volume and value signals that the sector could be backed on track.

– At the 5^th International Conference on Iranian Automotive Industry opening on Tuesday with officials from French car makers PSA Group and Renault companies present, the Minister of Industries, Mines and Trade announced the government support for +50% (controlling stake) foreign investment in the industry. The Deputy Minister of Industry, Mine and Trade also announced the closure of 2 important deals between Iranian and foreign spare part mfg. companies, referring to the 13 concluded contracts after the JCPOA.

– Following the recent reform scheme for Iran’s Banking Sector, Iranian parliament granted two state owned banks, Bank Melli and Export Development Bank of Iran, the green light to raise capital each for IRR 30,000 bn and IRR 20,000 respectively.

– The below table demonstrates the latest status of Iran’s Debt Market as of February 13, 2018:

Winning Streak Continues!

In the Market

Iranian equities overcame early weakness on today’s session to push the major indices higher for the third session in a row.

Tehran Stock Exchange major index, TEDPIX, climbed 0.25% to stand on 98,347.92 and IFEX recorded a slim win of +0.08% to stabilized itself above 1,100 level. The two indices held losses of previous week at the opening bell, but slowly began moving back towards their flat lines, hitting positive territory through the session end.

Within the Spare Part Mfg. space, companies were demanded early in today’s session; their positive sentiment spread to the rest of tickers, leaving tickers like Saipa Diesel with a buy queue at IRR 857.

Meanwhile, in the Iron Ore industry, shares went through balanced to positive trades, led by Iran Zinc Mines Development.

A rather positive sentiment was detected in the heavily weighted Metals space as well, although some tickers like Sepahan Industrial and Sepanta went under heavy sales pressure in their last trades. In its latest estimates, Hormozgan-e Jonoub Steel positively adjusted its EPS forecast from IRR 150 to IRR 204; the company covered 82% in the first 10 months.

Nearly the entire Construction space settled in the green, led by Tehran Renovation & Construction facing a buy queue. The Cement sector, however, ended with not much movements.

Source:

2018, Housing sector to boost Iran’s Economy!, Wednesday, February 14, p.1,<https://agahgroup.com>