Weekly Market Report

Trading Week: 12 - 16 August 2017

Summary

Main Topics

- Tehran Stock Exchange edges up to two-year highs

- Iran Fara Bourse slips on higher volumes

- Iran first quarter steel output up 13%

 

Tehran Stock Exchange

Tehran stocks continued to make steady gains this week, with the Tehran Stock Ex­change All-Share Index closing up 0.2% at 81,741 to reach its highest levels in 2-1/2 years. The top performing sector of the week was again Transportation & Logistics (+7.2%) due to continued demand for Islamic Republic of Iran Shipping Lines (KSHJ +7.8%). The weakest sector was Ceramics &Tiles (-5.1%), extending its losses to 8.4% over two weeks. Takceram Tile Manufacturing Co. (TKSM -19.0%) has been the main mover of the sector lately as a top pick of speculators. Despite the promising outlook for metal and mining companies, the growth rate of Base Metals (+1.4%) has slowed over the past three weeks since the sector advanced 11.4% in one week.  With the All-Share Index trading at its highest for 2-1/2 years, traders are starting to show some risk aversion how­ever.

 

The TSE30 index of the thirty largest companies by market capitalization closed at 3,281, up 0.3% on the week. Islamic Republic of Iran Shipping Lines (KSHJ +7.8%) led gainers, while Iran Khodro (IKCO -2.4%) was the biggest faller.

 

This week’s Average Daily Trade Volume fell 19% to USD 41 million. Esfahan Mobarakeh Steel Co. (FOLD +1.4%), Tabriz Oil Refining Co. (PNTB +8.4%) and Takceram Tile Manu­facturing Co. (TKSM -19.0%) were the most traded shares on the TSE by value, with vol­umes of USD 7.0 million, USD 4.2 million and USD 3.8 million respectively.

 

Iran Fara Bourse

The overall index of the Iran Fara Bourse slipped 0.6% over the week to end at 918. The market’s ADTV rose 136% to USD 71 million. Equities saw higher trading volumes than other instruments, mostly because of a block trade in Maroon Petrochemical Co. (PMRZ -0.6%). Parsian Oil & Gas Development Co. (PASN +4.1%) sold a 7% stake in this eth­ylene producer for USD 245 million.

 

Foreign Exchange Market

The Central Bank of Iran continued to raise the official rate of the US dollar, which was quoted up 0.3% on the week to IRR 32,931. Since the start of the year, the dollar’s official rate has increased by 1.7%. On the free market the dollar rose 0.3% over the week to IRR 38,173. The official rate of the euro gained 0.6% to IRR 38,783 while its free market rate rose 0.1% to IRR 45,012. The British pound was quoted by the CBI down 0.4% at IRR 42,495 and on the free market it fell 0.8% to IRR 48,700.

 

Economic Developments

Iran’s steel production grew 13% to 4.8 million tonnes in the three months to June 21 com­pared with the same year-ago period. Hot rolled coil, the main product, gained 3% to 1.8 million tonnes. Coated coil products posted the highest growth rate at 65%, reaching 397,000 tonnes. The Iran Steel Manufacturing Association reported that total national out­put rose 11% to 18.4 million tonnes in the Iranian year ending March 19, 2017. Higher do­mestic output and rising steel prices have boosted the outlook and market sentiment for steel manufacturing companies quoted on the Tehran Stock Exchange. Some analysts believe the current Iranian calendar year (ending March 2018) could be outstanding for some companies, including Esfahan Mobarakeh Steel Co. (FOLD +1.4%) and Khouzestan Steel Co. (FKHZ -0.1%).

FX Information

Description

17 August 2017

10 August 2017

% Change

Official USD - IRR

32,931

32,837

0.3

Market USD - IRR

38,173

38,040

0.3

Official EUR - IRR

38,783

38,544

0.6

Market EUR - IRR

45,012

44,956

0.1

Official GBP - IRR

42,495

42,668

(0.4)

Market GBP - IRR

48,700

49,100

(0.8)

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2017

TSE Overall Index - TEDPIX

81,741

162

0.2

6.5

TSE30 Index

3,281

10

0.3

6.5

Iran Fara Bourse Overall Index

918

(5)

(0.6)

4.9

Description

This Period

Last Period

Market P/E

7.0

7.0

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

41

51

(19)

IFB Average Daily Traded Val­ue (Million USD) **

71

30

136

Industry Index Information

Description

Close

% Change

Transportation & Logistics

3,972

7.2

Printing & Publishing

189,873

5.7

Oil Products

228,594

3.3

Base Metals

41,555

1.4

Pharmaceuticals

9,222

0.7

Insurance

5,110

0.6

Chemicals

4,706

0.3

TSE All-Share Index

81,742

0.2

Leather Production & Products

1,789

0.0

Medical & Measurement Products

10,244

0.0

Oil Drilling & Services

604

0.0

Engineering Services

693

(0.03)

Textile

1,354

(0.1)

Machinery & Equipment

16,074

(0.2)

Telecommunication

947

(0.2)

Industrial Conglomerates

7,570

(0.3)

Metallic Products

30,608

(0.3)

Banking

572

(0.3)

Automotive

18,124

(0.4)

Metallic Ore

14,634

(0.5)

Utility Service Providers

194

(0.7)

Investment

1,889

(0.9)

Foods excluding Sugar

3,758

(1.2)

Other Financial Services

2,328

(1.3)

Cement

709

(1.4)

Machinery & Electric Equipment

501,901

(1.5)

Rubber & Plastics

22,265

(2.2)

IT

12,593

(2.4)

Sugar

8,975

(2.4)

Construction

755

(3.0)

Mining

15,257

(3.2)

Coal Mining

1,377

(4.1)

Paper Products

12,062

(4.5)

Agriculture

7,167

(4.6)

Non-Metallic Ores

2,341

(4.6)

Ceramics & Tiles

2,249

(5.1)

Wooden Products

56,223

(7.9)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

MSTI

Motorsazan Iran Tractor Mfg. Co.

17.8

27.0

ATIR

Iran Tractor Forging Co.

9.8

19.4

MNGZ

Iran Manganese Mines Co.

6.6

9.3

CHCH

ChinChin Agro-Industrial Co.

23.5

6.3

KDPS

Pars Animal Feed Co.

18.4

0.7

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

FOLD

Esfahan Mobarakeh Steel Co.

4.6

7.0

PNTB

Tabriz Oil Refining Co.

14.1

4.2

TKSM

Takceram Tile Mfg. Co.

7.1

3.8

ATIR

Iran Tractor Forging Co.

9.8

3.6

BAHN

Shahid Bahonar Copper Co.

17.1

3.4

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

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