Weekly Market Report

Trading Week: 10 - 13 September 2017

Summary

Main Topics

- Tehran Stock Exchange ends five-week run

- Iran Fara Bourse slips for second week

- Iranian rial extends losses 

 

Tehran Stock Exchange

The Tehran Stock Exchange All-Share Index ended five straight weeks of gains, slipping 0.2% to close at 83,523 on Wednesday. Metal and mining stocks edged downwards alt­hough some recovered most losses by the end of the week. MAPNA Group (MAPN -3.4%) added to pressure on the All-Share Index, dragging down Engineering Services (-3.4%) which led fallers among major sectors. Paper Products (+5.0%), currently a favorite among speculators, was the best performing sector and has added 11.3% in two weeks. Oil Products (+1.3%) continued to make ground but at a slower pace, despite signals last week of the sector’s potential to become the next market leader. Some experts believe the latest issue of Islamic treasury bills yielding over 17% has turned investors away from eq­uities.

 

The TSE30 index of the thirty largest companies by market capitalization closed at 3,397, down 0.6% from a week ago. The top performer was Civil Pension Fund Investment Co. (SAND +3.3%), whose gains were a reminder of its potential after months of stable trad­ing. The weakest share in the top 30s was National Iranian Copper Industries Co. (MSMI -7.1%).

 

This week the Average Daily Trade Volume (ADTV) increased 12% to USD 56 million, following the issue of two new series of Islamic T-bills and also the IPOs of Chodansazan Industrial Co. (CHDN) and Hi Web (HWEB). The shares with the highest traded value over the week were Hi Web (HWEB), SAIPA Group (SIPA +0.1%) and Esfahan Mobarakeh Steel Co. (FOLD 0.0%) with volumes of USD 29 million, USD 5.2 million and USD 4.6 mil­lion respectively.

 

Iran Fara Bourse

The Overall Index of the Iran Fara Bourse extended last week’s losses, closing 0.4% down at 944. Its ADTV was little changed, falling 5% to USD 38 million. Debt securities remained the most traded instrument on the IFB with total traded value of USD 99 million.

 

Foreign Exchange Market

The Iranian rial continued to lose ground, signaling the possibility of growth on the TSE for companies with international sales. The Central Bank of Iran raised the official rate of the US dollar by 0.4% to IRR 33,460 while its free market rate added 0.7% to IRR 39,187. The euro’s official rate was quoted down 0.01% at IRR 39,744 but on the free market it added 0.2% to IRR 46,920. The British pound’s official rate gained 1.6% to IRR 44,178 and on the free market sterling jumped 2.0% to IRR 51,500.

FX Information

Description

14 September 2017

7 September 2017

% Change

Official USD - IRR

33,460

33,330

0.4

Market USD - IRR

39,187

38,899

0.7

Official EUR - IRR

39,744

39,748

(0.01)

Market EUR - IRR

46,920

46,809

0.2

Official GBP - IRR

44,178

43,492

1.6

Market GBP - IRR

51,500

50,500

2.0

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2017

TSE Overall Index - TEDPIX

83,523

(151)

(0.2)

8.8

TSE30 Index

3,397

(22)

(0.6)

10.4

Iran Fara Bourse Overall Index

944

(4)

(0.4)

7.9

Description

This Period

Last Period

Market P/E

6.6

6.6

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

56

50

12

IFB Average Daily Traded Val­ue (Million USD) **

38

40

(5)

Industry Index Information

Description

Close

% Change

Paper Products

13,228

5.0

Rubber & Plastics

22,099

1.4

Oil Products

247,782

1.3

IT

12,612

1.3

Sugar

8,767

1.1

Chemicals

4,965

1.1

Utility Service Providers

205

0.6

Telecommunication

953

0.6

Industrial Conglomerates

7,660

0.5

Agriculture

7,046

0.5

Metallic Products

30,875

0.4

Automotive

16,862

0.2

Foods excluding Sugar

3,694

0.2

Wooden Products

56,325

0.0

Medical & Measurement Products

10,244

0.0

Pharmaceuticals

9,136

(0.1)

Insurance

4,979

(0.1)

TSE All-Share Index

83,524

(0.2)

Leather Production & Products

1,935

(0.2)

Textile

1,308

(0.3)

Mining

13,028

(0.3)

Banking

567

(0.3)

Ceramics & Tiles

2,327

(0.4)

Investment

1,896

(0.5)

Machinery & Electric Equipment

489,255

(1.0)

Transportation & Logistics

3,968

(1.0)

Cement

675

(1.1)

Metallic Ore

16,140

(1.3)

Other Financial Services

2,187

(1.8)

Printing & Publishing

190,535

(2.3)

Machinery & Equipment

15,692

(2.3)

Non-Metallic Ores

2,292

(2.5)

Base Metals

44,004

(2.8)

Construction

696

(3.4)

Engineering Services

637

(3.4)

Coal Mining

1,264

(3.6)

Oil Drilling & Services

451

(8.9)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

SPHZ

West Azerbaijan Dairy Products

4.9

15.3

BHSM

Behceram Granite Co.

9.6

15.1

INDM

Indamin SAIPA Shock Absorber

3.0

15.1

TMVD

Temad Co.

18.4

12.6

KSKA

Kaveh Paper Industries Co.

9.8

11.5

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

HWEB

Hi Web

7.3

29.1

SIPA

SAIPA Group

2.9

5.2

FOLD

Esfahan Mobarakeh Steel Co.

4.9

4.6

PNES

Esfahan Oil Refining Co.

8.1

3.4

APPE

Asan Pardakht Persian Co.

31.7

2.6

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

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