Iran Determined to Boost Local Production
The Minister of Industries, Mining and Trade announced the list of 800 commodities which will go through an important ban or higher important tariffs; this is done to boost domestic production and putting local producers first. In this regard, the Iranian Custom Administration has also announced that it will now set importing tariffs based on the customs value of the parts produced in the country. Such moves are being taken to be in harmony with the motto of the new Persian calendar year, i.e. Resistance Economy; Production and Employment, enjoying the potential to exert positive impact on many listed companies.
According to the Head of Tehran Association of Realtors, the housing market has been predicted to pull out the recession in the second half of the current year, which will kick-start in Tir (June-July 2017). This market has been grappled with recession for nearly 4 years.
In its first budget for the FY ending 21 December 2017, Pars Refractories has estimated to realize IRR 67 EPS, which is 6% lower than its previous one, i.e. IRR 71.
Marjan Kar Business and Trade has realized IRR 68 EPS for the quarter ended 20 March 2017, which is 1% higher; based on the 3-month performance, the company has covered 23% of its predictions.
In the Market
8 trading sessions have been passed in the new Persian calendar year. While the Tehran Stock Exchange witnessed low value and volume trades in the last sessions of the previous year, the All-Share Index has registered a 0.6% growth in this period, again with low volume and value of trades. Of the factors involved are the psychological atmosphere of the Presidential election along with priced fluctuations in global markets and the recent political tensions in Syria, making investors adopt a conservative approach. As the most important political event in the country, the candidates for presidency are gradually being introduced. The election political risk will also affect Iran’s international relations and the required economic improvement in the country, in addition to its economic policies; this adds to the importance of this even for our stock exchange as well.
The price of products produced by Saipa, Pars Khodro and Zamyad went up following the increase in third party insurance price rate in 2017/18. The majority of tickers in the Automotive sector started strong. Saipa has been heard to apply a positive adjustment mainly for selling Saipa Kashan subsidiary. Nearly all tickers closed with buy queues at the end.
Insurance companies are now forced to apply IFRS measures in the first half of the current year. Today, a 4.5% block of Alborz Insurance was offered by a fund affiliated with Mellat Investment Bank. Dana Insurance also went through positive trades.
Most names in the Cement industry closed with buy queues, including Sharq Cement, Darab Cement and Qarb Cement; such tickers have the potential to start a significant rise.
All companies listed on Tile and Ceramics industry closed with buy queues, led by Alvand Tile and Takceram Tile. In case the housing sector shows a sign of kicking recession, such names have the potential to grow even more.
Among names in the Banking group, the CBI reduced the legal reserve ratio for Bank Sina due to having applied the requirements and approvals made by the Money and Credit Council; this rate is now set at 11.25%.
Names in the Chemicals group nearly went through balanced trades, led by Polyacryl; this share has benefited its shareholders by 50%, in the past 10 trading sessions. Officials in Khorasan Petrochemical (+1.13%) announced that the recent earthquake has not damaged the implementation of plans and projects of the company.
A great number of symbols in the Food and Beverage space closed above their flat lines, led by Behpak Industrial, which closed with a buy queue; Dairy products company owners are demanding for a price rise. In addition, Golestan Dairy (+4.63%) received the permission to export its products to Russia.
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