Weekly Market Report

Trading Week Ended: 14 -18 January, 2017

Summary

Main Topics

· TSE All-Share Index closed up 1% at 79,382 for first weekly gain in six weeks. Also, the TSE’s ADTV grew by 116%, boosted by block trades and exchange of debt securi­ties.

· The Iran Fara Bourse market advanced 1.8% to 845.

· Signs of industrial progress have become evident in the Iranian economy with  growth in auto, raw steel and  petrochemicals production.

 

Tehran Stock Exchange

The Tehran Stock Exchange All-Share Index recorded its first weekly gain in six weeks, closing at 79,382, up 1.0% from last week. The majority of sectors closed in positive terri­tory. Among the major sectors, the highest weekly growth was posted by Other Financial Services (+6.9%) and Automotive (+5.2%). The improving auto industry was the main fac­tor boosting both sectors. Rayan SAIPA Leasing Co. (RASP +11.6%), which had the big­gest impact on the Other Financial Services index, yesterday revised its projected net in­come upwards for the financial year ending March 20 by 29% to IRR 1,303 billion (approx. USD 34.5 million). According to its unaudited nine-month report, the company has already earned IRR 1,009 billion (approx. USD 26.7 million) in net income. The Automotive index was lifted mainly by Iran Khodro (IKCO +15.5%) which upgraded its projected net income for the financial year ending March 20 by 56% to IRR 1,856 billion (approx. USD 49 mil­lion). Its unaudited financial statement released yesterday showed IRR 958 billion (approx. USD 25 million) net income during the three quarters. This week the weakest sector was Machinery & Electric Equipment (-2.2%) as Iran Transfo Corp. (TRNS -3.1%) continued to fall.

 

The Average Daily Trade Volume (ADTV) surged by 116% to USD 80 million in the third trading week of January because of a number of block trades and trading in debt securi­ties. The companies posting the highest weekly traded value were led by Azarb Industries Co. (AZAB -2.4%), Iran Khdro (IKCO +15.5%) and SAIPA Group (SIPA +0.2%) with USD 12.1 million, USD 11.4 million and USD 7.3 million respectively.

 

The TSE30 index of the thirty largest companies by market capitalization outperformed the rest of the market, advancing 1.4% over the week to close at 3,264. The top performer was Iran Khodro (IKCO +15.5%), while Chadormalu Mining & Industrial Co. (CHML -4.0%) dropped the most.

 

Iran Fara Bourse

On the Iran Fara Bourse (IFB) market, the overall index added 1.8% and closed at 845. Its ADTV reached USD 45 million, posting 9% growth, while debt securities remained the most popular instruments on the IFB with USD 145 million total traded value.

 

Foreign Exchange Market

On the FX market, the Central Bank of Iran barely changed the US dollar official rate, quoting it at IRR 32,366, down 0.01% from last week. The free market rate of USDIRR dropped 3.8% to 37,784, with the dollar giving up some of the 15% gains it made from September to late December 2016. The official rate of the euro was set at IRR 34,438 by the CBI, 0.3% higher than last week. The EURIRR free market rate slipped 0.8% to 42,343. The CBI slightly increased the official rate of British pound sterling, setting it at 39,731, up 0.5% for the week, while on the free market the pound dropped 1.8% to IRR 48,100.

 

Economic Developments

Latest industry reports demonstrate the progress made by Iran’s economy during the nine months to December 20, 2016. The auto industry reported 39% growth in output to a total of 949,497 vehicles. Passenger car production rose 41% to 881,935. Iran Khodro remains the dominant manufacturer in the sector, boosting its output by 33.5% to 451,486. SAIPA Group reported a production growth of 54% compared with the same year-ago period to 399,360 vehicles, while output at Peugeot gained 23% to 293,882 units and Renault boosted its volumes by 160% to 87,544. In the metal and mining industry, production of raw steel gained 10% to 13.8 million tonnes in the reported period while exports grew 118% to 2.5 million tonnes, earning revenues of USD 824 million. However export vol­umes have barely changed since August due to demand for raw steel in the local market. The petrochemical industry has also boosted output, with production up 7% to 37.6 million tonnes. This includes 17 million tonnes produced in Asaluyeh and 13.5 million in Mahshahr port. Almost 40% of the petrochemical products were exported in the nine-month period, earning USD 6.4 billion.

FX Information

Description

19 January 2017

12 January 2017

% Change

Official USD - IRR

32,366

32,368

(0.01)

Market USD - IRR

37,784

39,295

(3.8)

Official EUR - IRR

34,438

34,348

0.3

Market EUR - IRR

42,343

42,678

(0.8)

Official GBP - IRR

39,731

39,535

0.5

Market GBP - IRR

48,100

49,000

(1.8)

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2016

TSE Overall Index—TEDPIX

79,382

760

1.0

(1.0)

TSE30 Index

3,264

45

1.4

(3.5)

Iran Fara Bourse Overall Index

845

14

1.8

4.9

Description

This Period

Last Period

Market P/E

7.4

7.4

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

80

37

116

IFB Average Daily Traded Val­ue (Million USD) **

45

41

9

Industry Index Information

Description

Close

% Change

Wooden Products

56,663

17.5

Agriculture

7,116

8.5

Other Financial Services

2,219

6.9

Automotive

17,820

5.2

Construction

713

4.5

Sugar

5,598

4.0

Oil Drilling & Services

720

3.0

Transportation & Logistics

3,978

2.4

Mining

8,486

2.3

Cement

717

2.3

Non-Metallic Ores

2,183

2.2

Paper Products

7,894

2.0

Ceramics & Tiles

2,055

1.8

Rubber & Plastics

20,743

1.8

Metallic Ore

14,656

1.8

Telecommunication

860

1.7

Base Metals

34,400

1.6

IT

8,738

1.6

Foods excluding Sugar

3,640

1.5

Oil Products

194,951

1.5

Printing & Publishing

117,576

1.3

Pharmaceuticals

9,350

1.2

TSE All-Share Index

79,382

1.0

Insurance

5,168

0.8

Investment

1,766

0.7

Utility Service Providers

182

0.6

Machinery & Equipment

15,529

0.5

Industrial Conglomerates

7,283

0.4

Textile

1,531

0.4

Coal Mining

1,265

0.0

Engineering Services

843

0.0

Medical & Measurement Products

10,244

0.0

Banking

697

(0.3)

Leather Production & Products

1,633

(0.3)

Metallic Products

39,599

(0.3)

Chemicals

4,782

(0.5)

Machinery & Electric Equipment

471,092

(2.2)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

PIAZ

Piazar Agro Ind. Co.

18.7

27.1

GSKE

Agricultural Ind. Services Dev. Co

11.9

26.6

FIBR

Iran Fiber Co.

17.6

17.5

IKCO

Iran Khodro

7.8

15.5

LPAK

Pak Pasteurized Dairy Products

5.5

14.9

TSE Top 5 Losers

Company

Close **

(USD Cents)

% Change

NSAZ

Azar Refractories Co.

5.2

(20.3)

ZMYD

Zamyad Co.

2.3

(12.4)

MRGN

Margarine Co.

13.8

(9.8)

TOKA

Tukafoolad Investment Co.

3.4

(6.4)

IDOC

Etebar Iran Motorcycle Co.

2.9

(5.9)

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

AZAB

Azarab Industries Co.

9.5

12.1

IKCO

Iran Khodro

7.4

11.4

SIPA

SAIPA Group

2.9

7.3

APPE

Asan Pardakht Co.

40.3

5.7

FOLD

Esfahan Mobarakeh Steel Co.

9.5

3.1

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

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