Which stock market symbols are affected by the housing leap plan?
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According to Tejarat News, the registration for the housing leap project will start today, and those involved in this project can apply for registration. From the very beginning, the new government announced the construction of one million housing units per year.
Negative government signals about mandatory pricing in some industries have caused prices to fall and the value of some companies’ stocks to fall. Over the past few months, capital market experts have predicted that if the government were to implement the idea of building affordable housing, the first to suffer would be the companies that sell the building materials, as the government requires them to save on construction costs. Sell your products cheaper.
But Ali Assari, a capital market expert, has a different view, saying that if the idea is implemented, industries such as building materials and cement could grow.
Regarding the impact of this plan on the stock exchange industry, he said: “In the first place, it seems that construction companies will benefit from this issue, but with the implementation of this plan, the profit margins of these companies will be drastically reduced.”
“Because housing construction starts at the hardening stage and ends at the joinery stage, it seems that industries such as cement will be affected in the first place due to the strong need for cement, and in the second place industries such as construction materials will be affected,” he said. And ceramic tiles grow. He continued: “But the construction companies themselves do not grow as much due to the low profit margins.”
Mohammad Khabarizad, a capital market expert, also told Tejaratnews: “Regardless of whether this plan is feasible or not, two groups can benefit from this plan.” The first group that provides the raw materials for housing, such as cement, ceramic tiles, steel and metals, and the second group that are the builders of this project.
He continued: “Of course, it is very likely that they will not contract and build this project to listed companies.” In this case, if rents are formed in this plan, it is likely that other stock exchange industries will not grow.
Of course, today, with the announcement of this news, construction companies were accompanied by a drop in prices, and most of the symbols of this group are traded in the negative range.
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