SEO Determined to Deliver Promises
Referring to the delivery of promises regarding applying changes to the fluctuation domain, the base volume along with the mechanism to halt and reopen tickers within the next few weeks, the Head of the Securities and Exchange Organization of Iran announced the removal of the 0.5% tax paid by shareholders when selling securities that have made loss plus lowering the trade commissions. Dr. Shahopour Mohamadi also named other issues like doing options on portfolios, trading crude oil in Iran’s Energy Exchange, launching the Foreign Currency Exchange with the cooperation of the Central Bank of Iran, reviewing rules and regulations as well as boosting settlement and clearing systems among those planned to be implemented by this regulatory body in Iran’s capital market before the current year ends.
In the Market
The rather weak economic statistics released by Chinese authorities the other day were supposed to drag global markets’ indices down; however, the reduction in tension between North Korea and US not only neutralized the negative news from China, but also resulted in growth such that oil prices returned to the above $50 area, copper was priced above $6,400 and Aluminum was set at above $2,000. Domestically speaking, President Rouhani gave a speech in the Majlis to defend the elected ministers, which might put an end to expectations and ambiguity and trigger the market movement.
The majority of tickers in the Oil Products industry started an upward movement. Technical analysts believe that these shares will grow in the mid-term. Pars Oil and Shiraz Oil Refining climbed more than 4%. Furthermore, selling 1.1 mn barrels of oil to European countries in May 2017, Iran has reached its pre-sanction capacity; in fact, Iran’s export to Europe now equals that of Asian countries.
A rather positive sentiment was seen in the Metals space as well with Navard Aluminum, Shahid Bahonar Copper and Zarin Ma’dan Asia gaining more than 4 and 3%. Having been halted for near 2 years, Iran Aluminum returned to the market 172% higher at IRR 900 after holding its AGM an extraordinary AGM (by approving 756% capital raise plan); the ticker started facing a sell queue and eventually closed at IRR 855.
Understanding the disadvantages high interest rates can cause in the housing market, many officials are talking about lowering this rate, which will eventually lower the cost of money for enterprises, enable the public with more purchase power and bring prosperity back to markets, including the housing. In today’s session, a rather positive trend was observed in the Construction group, which must wait and see whether it will continue or not. In the final hour of session, Iran Construction Investment and Tehran Construction and Renovation faced buy queues. Such a sentiment failed to spread to the Cement space, although a few like Esfahan Cement closed above its flat line, named as the top gainer in the group.
With news and rumors coming out of Saipa ticker reopening, the majority of names in the Automotive space went through positive trades with Ravan Fanavar Industrial Engineering, Motorsazan Iran Tractor and Zar Spring Mfg. finishing 4% higher.
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