Weekly Market Report

Trading Week : 8 – 12 April 2017

Summary

Main Topics

- Tehran Stock Exchange volume returns to pre-holiday levels

- Iran Fara Bourse makes further gains

- Iran’s non-oil foreign trade rises 4% to USD 87 billion

 

Tehran Stock Exchange

The Tehran Stock Exchange All-Share Index continued its positive run in the new Iranian year with another week of minor gains, adding 0.6% to close at 78,132. Metallic Products (+9.4%) and Automotive (8.7%) were the top performing sectors, while Base Metal (-2.0%) and Metallic Ore (-3.7%) were the biggest fallers. The market has been quite volatile in recent weeks, with analysts suggesting that investors have yet to identify their top picks among sectors for the new Iranian calendar year because of uncertainty on global com­modity markets and the run-up to the May 19 presidential election.

 

The TSE30 index of the thirty largest companies by market capitalization slipped 0.5% to 3,073. SAIPA Group (SIPA +12.5%) led gainers while Metals & Mines Development Inv. Co. (MADN -4.9%) fell the most.

 

The Average Daily Trade Volume (ADTV) rose 60% over the week to USD 72 million.
Stocks posting the largest turnover included SAIPA Group (SIPA +12.5%), Iran Khodro (IKCO +5.3%) and Polyacryl Iran Corp. (PLAK +18.6%) with USD 14.4 million, USD 6.5 million and USD 6.4 million of trades respectively.

 

Iran Fara Bourse

The Iran Fara Bourse (IFB) overall index gained 0.8% to close at 896, while its ADTV surged 142% to USD 46 million. Equities remained the most popular securities on the IFB with total traded value of USD 84 million.

 

Foreign Exchange Market

On the FX market the US dollar was barely changed. The Central Bank of Iran raised the official dollar rate by 0.02% to IRR 32,432 while on the free market it traded up 0.01% to 37,523. The euro’s official rate was left unchanged at IRR 34,616 but it fell 1.2% on the free market to IRR 40,053. The official rate of the British pound gained 0.7% to IRR 40,752 and rose by the same margin on the free market to IRR 47,050.

 

Economic Developments

Iran’s total non-oil trade rose 4% to USD 87.6 billion in the Iranian calendar year ending March 20, 2017, with the surplus narrowing slightly to USD 300 million, according to the Islamic Republic of Iran Customs Administration. Exports gained 3.5% to USD 43.9 billion while imports increased 5.1% to USD 43.6 billion. In terms of tonnage, exports gained 38% to 129 million tonnes while imports fell 4% to 33 million tonnes. The average price of each tonne of non-oil exports fell 25% to USD 338 but rose 10% to USD 1,309 for imports. Exports were led by petrochemical products which gained 9% to USD 14.3 billion and gas condensates which rose 56% to USD 7.3 billion. Natural gas exports fell 2.7% to USD 2.0 billion despite a 67% gain in volumes. Prices for all three sectors fell significantly over the year while volumes increased. Petrochemical products dropped 22% per tonne to USD 442, gas condensates lost 12% to USD 392 and natural gas fell 42% to USD 213. Top destinations for Iran’s exports included China (USD 8.7 billion), the UAE (USD 7.4 billion), Iraq (USD 6.1 billion), Turkey (USD 3.2 billion) and South Korea where exports grew 229% to USD 2.8 billion. Iran’s main imports were led by corn feedstock (USD 1.4 billion), soybean (USD 909 million), and motor vehicles with engine capacity from 1,500 cc to 2000 cc (USD 893 million). Wheat dropped from the list of main imports, corn feedstock remained stable while soybean added almost USD 200 million. Tonnage figures have not been released yet. Main sources for Iranian imports were China (USD 10.7 billion), the UAE (USD 6.4 billion), South Korea (USD 3.4 billion), Turkey (USD 2.7 billion) and Ger­many (USD 2.5 billion).  Imports from China fell 12.5% in terms of tonnage but gained 2.6% in value. Imports fell from the UAE, South Korea and Turkey, mostly because of low­er volume, while imports from Germany gained 39% in value and 59% in tonnage. The partial removal of sanctions against Iran has led to an increase in trade with Europe. Com­pared with four years earlier, Iran’s total imports have fallen by 18% in value and 15% in tonnage.

FX Information

Description

13 April 2017

6 April 2017

% Change

Official USD - IRR

32,436

32,431

0.02

Market USD - IRR

37,523

37,521

0.01

Official EUR - IRR

34,616

34,617

(0.0)

Market EUR - IRR

40,053

40,547

(1.2)

Official GBP - IRR

40,752

40,475

0.7

Market GBP - IRR

47,050

46,700

0.7

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2016

TSE Overall Index—TEDPIX

78,132

442

0.6

1.8

TSE30 Index

3,073

(14)

(0.5)

(0.1)

Iran Fara Bourse Overall Index

896

7

0.8

2.4

Description

This Period

Last Period

Market P/E

7.3

7.3

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

72

45

60

IFB Average Daily Traded Val­ue (Million USD) **

46

19

142

Industry Index Information

Description

Close

% Change

Paper Products

9,799

14.3

Metallic Products

34,778

9.4

Automotive

19,124

8.7

Oil Drilling & Services

732

8.6

IT

10,035

8.3

Ceramics & Tiles

2,373

6.9

Rubber & Plastics

21,729

6.5

Machinery & Equipment

17,083

6.3

Engineering Services

751

6.0

Non-Metallic Ores

2,485

5.7

Printing & Publishing

154,802

5.7

Foods excluding Sugar

3,705

5.0

Construction

816

4.6

Investment

1,916

3.9

Machinery & Electric Equipment

536,854

3.7

Agriculture

7,942

3.4

Sugar

6,067

2.5

Insurance

5,302

2.4

Wooden Products

70,117

2.2

Cement

753

2.1

Industrial Conglomerates

7,222

0.8

Other Financial Services

2,462

0.7

TSE All-Share Index

78,132

0.6

Coal Mining

1,265

0.0

Medical & Measurement Products

10,244

0.0

Mining

16,981

0.0

Textile

1,387

(0.0)

Utility Service Providers

191

(0.2)

Pharmaceuticals

9,146

(0.2)

Oil Products

206,482

(0.2)

Chemicals

4,698

(0.4)

Transportation & Logistics

3,908

(0.7)

Telecommunication

892

(1.1)

Leather Production & Products

1,691

(1.1)

Banking

574

(1.5)

Base Metals

32,903

(2.0)

Metallic Ore

13,139

(3.7)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

DAML

Zagros Pharmed Pars Pharm. Co.

14.8

22.2

TKSM

Takceram Tile Manufacturing Co.

4.9

21.2

SHND

Sahand Rubber Industries Co.

7.6

20.4

BDAN

Dana Insurance Co.

10.3

19.3

PLAK

Polyacryl Iran Corp.

2.2

18.6

TSE Top 5 Losers

Company

Close **

(USD Cents)

% Change

LMIR

Luleh va Mashinsazi Iran Co.

19.0

(12.3)

FRVR

Iran Mineral Processing Co.

21.1

(11.8)

BAMA

Bama Mining & Ind. Co.

15.8

(11.1)

BAFG

Bafgh Mining Co.

31.0

(10.8)

KSIM

Calcimin Co.

8.5

(9.4)

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

SIPA

SAIPA Group

3.5

14.4

IKCO

Iran Khodro

7.7

6.5

PLAK

Polyacryl Iran Corp.

2.2

6.4

BANK

Tosee Melli Investment Group

5.7

4.0

GGAZ

Ghazvin Sugar Co.

7.3

3.2

** All figures in USD are converted from IRR at the free market rate

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