Market News

– In an attempt to direct the unleashed money supply of the Iranian society towards production and reasonable markets, the Ministry of economic affairs comes with three major incentives for Iran Capital Market in order to make that attractive again in the eyes of investors:

• Fees on stock transfers as well as rights will be reduced to 0.1% (from 0.5%)
• Commissions of involved entities will be reduced properly
• Capital raising from unpaid dividends account will be tax exempted

– Aimed at salvaging the JCPoA after the US walkout following the EU attempts to link Iran to the international financial system, ambassadors and representatives from Austria, England, China and Germany gathered together to discuss the possible ways to this end along with their perspectives on economic cooperation with Iran. Empowering Iran’s Private Sector was among the points mentioned; keeping their eyes on long-term relations with Iran, they believe that implementing their successful experiences in Iran can help improve business atmosphere in the country providing opportunities for their SMEs to dip their toes into the water of Iran’s economy.

– The head of pharmaceutical producers syndicate has announced a figure of IRR 40,000 bn (USD 9.16 bn) as the governments’ liabilities to the pharma industry which will paralyse any production should debt payments fail. Recently Central Bank of Iran claimed that the administration’s liabilities to this bank reduced by 2.8% and stood at IRR 266,000 bn. Analysts believe that the clearing and settlement of state debts to different market sectors shall pace faster or most of them will face an inevitable collapse.

In the Market

At the end of today’s session, the TEDPIX stood at the 108,295-point level, going up by 518 points (+0.48%); the IFEX also ended at the 1,213-point level, 2.9 points (+0.25%) higher.

Despite being forced to halt its operation in the country as soon as the sanctions are re-imposed, PSA Group has announced that it is committed to delivering the pre-sold cars. The Automotive space saw a rise in demand, led by Iran Khodro Investment Development (+3.9%); the majority of tickers touched their highs. Bahman Group ticker returned to the market at IRR 820, 13% higher.

The Metals industry finished mostly in the green with Zangan Zinc Industry as its top gainer. Esfahan’s Mobarake Steel recognized IRR 219 EPS over the Q1 ended June 21^st; it shows an 81% growth compared to the same period last year and originates from the 42% rise in sales.

Moreover, the Iron Ore group went through positive trades as well while the oil Products industry witnessed rather balanced trades; Esfahan Oil Refining paid out IRR 300 as the dividend.

Finally, the Construction space along with the Cement industry went through positive trades, too. In case the fluctuations in Forex and gold coin markets continue, the housing sector will be affected as well; investors are eyeing changes.

Source:

2018, Attractive incentives for Iran Capital Market!, Saturday, July 21, p.1,<https://agahgroup.com>