Foreigners Tapping Iran’s Economy
* According to an official in the Securities and Exchange Organization of Iran, trading by foreign institutional investors has grown by 47% in the first 4 months of the current year over March 21- 22 July 2017. Over this period, institutional investors have allocated 91% of trading, registering a significant growth compared to the same period last year; based on statistics, they have posted a 47% increase in trading value and 103% surge in trading volume. Furthermore, the Organization for Investment Economic and Trade Assistance of Iran also reported the entrance of $11,263 mn foreign finance in the 11th administration; UNCTAD has also registered the entrance of $2 bn foreign investment in 2015, which has increased up to 3 bn in 2016, posting a 65% growth.
* Finally, after 5 days of discussion, nearly all ministerial nominees received the Majlis vote of confidence on Sunday. Later that day, the President appointed Mr. Nahavandian as his deputy for economic affairs, which is a new title in addition to introducing Mr. Va’ezi, the previous Minister of Telecommunication, as his chief of staff.
* In line with plans to relink Iran with international markets in general and expand the market in the automotive industry in particular, an Iranian company, i.e. Artash Composite, which has been producing spare parts mostly to meet Iran Khodro’s needs, is now trying to negotiate with Kia Motors to offer its products; this would pave the way for the presence of Iranian spare part mfg. companies to enter international markets.
In the Market
Tickers active in spare part mfg. area in the Automotive sector like Iran Tractor Forging ended with a buy queue and some other like Saze Pouyesh and Khavar Spring Mfg. faced ones. After the price rise in Saipa products, Zamyad (-0.13%) company has also announced the increase in its products prices. The Iranian company named Ezam has also entered into a contract with Valeo and Busch companies to produce spare parts.
Following commodities price hike in international markets, the rise in demand for Metals and Iron Ore sectors listed companies has remained in place; the majority of names settled the session in green.
Mobin One Kish has still kept its buy queue at IRR 5,122 after IPOed on August, 9th, benefiting its shareholders with 40% return. This positive sentiment also pushed Atie Data Processing in the IT & Communication industry into facing a buy queue.
An official in Iran Custom Organization announced the export of cement and clinger to an African country. Furthermore, an official in Iraq Custom Organization also rejected the 17% import tariff on cement produced by Saudi Arabia and added that Iraq has stopped importing cement from all countries. Among symbols in the Cement group, Lar-e Sabzevar Cement (3.27%) and Kerman Cement (1.31%) were the top gainers, although the majority of names settled with slim losses.
In line with positive trades in the Sugar group, symbols in the Food & Beverages space were also traded positively such that Shirin Khorasan Sugar and Shahd Sugar in the former and Pegah-e Azerbaijan Qarbi and Behshahr Industries Development in the latter finished with buy queues.
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