Market News

– In order to tame the unleashed growth of real estate market which led to unreasonable prices in Iran housing sector, the cabinet members are to ratify a directive, using tax leverages, to maintain the situation and force landlords to empower the supply side. The urban and housing ministry seeks the following goals by this directive:

• Increasing the lease terms to 2 years;
• Increasing the supply side of under 100 square meters’ apartments in urban areas;
• Decreasing the empty (no tenants) apartments in cities;
• Increasing the supply of residential lands; and
• Increasing the number of rentable houses;

Stats show that a figure of 36,000 residential units is adding annually to the capital (Tehran) only and the number of no tenants’ (empty) units is trifold contrary to the world average.

– Following the national demand for a change in president Rouhani economic team, the administration replaced the chair of the central bank of Iran. As of today, Mr Naser Hemmati, the former head on Iran central insurance and the current ambassador of Iran in China, is the new head of CBI proceeded by Mr Valiollah Seif former head of the organization.

– Reil Seir Kowsar transportation company, listed on Iran Fara Bourse under the ticker of RSKZ1, is going to issue corporate Sukuk Ijarah worth IRR 300 bn (USD 6.8 mn) for the purchase of 13 passenger wagons with a coupon rate of 16%, quarterly payments and maturity of 4 years.

In the Market

At first, it was an erratic day of trading on Tehran Stock Exchange, with Oil Products and Metal shares being the primary source of volatility. The Chemical-heavy TEDPIX (+0.37%) index declined the start of today’s session but reclaimed it all back, settling a tick above its flat line. The IFEX on the other hand, thanks to its Metal component reopenings, hiked for +1.14% to close at 1,232.55 level.

The better than expected news on the administration economic team changes can be considered as the main catalyst behind this move while the quarterly reports of influential tickers have its hand in this bullish trend as well.

Investor sentiment was unmistakably bullish after the first hour. The Oil Products (+3.78%) soundly beat profit estimates for the first quarter. Tehran Oil Refinery (PTEH, +9.95%) reopened after its halt and placed 175.9 positive points on the overall index solely. Isfahan Oil Refinery (PNES, +4.59%) was next in line which closed with purchase orders left in the queue. Almost all the sector’s tickers ended the day in good green except a few which performed disappointingly.

Elsewhere, with the recent advances in global commodities, the Metals (+1.45%) sector saw a growing demand and its major names humped between 0.5 to almost 7%. National Copper industries (MSMI, +2.81) was the leader with almost 63 traded shares. Isfahan Steel Co. (ZOBZ, +3.18%)came back to market 7% higher announcing its plans to provide Iran’s national railway company with transportation tracks.

Finally, the Chemicals (-0.12%) ended the day mostly in red due to a new directive capping their price fluctuations ranges on Iran Mercantile Exchange at only 5% (previously it was 10%). The newcomer company, Pars Petrochemical (PARS, -1.47%) performed poorly during the first horse yet managed to rise in demand through the ending bell. Its major shareholder, Persian Gulf Petrochemical (PKLJ, -1.36%), also lost some of its recent gains and recorded 108.63 red points on the overall index.

Source:

2018, Iran housing sector will perform a tax surgery!, Wednesday, July 25, p.1,<https://agahgroup.com>