Weekly Market Report

Trading Week Ended: 18 - 22 Feb, 2017

Summary

Main Topics

- TSE All-Share Index ends the week up 0.9% to close at 77,847.

- Iran Fara Bourse overall index goes up 2.1% to reach 867.

- Latest CBI report shows Iran’s inflation has reached its highest level since October 2015

 

Tehran Stock Exchange

The Tehran Stock Exchange closed in positive territory for the second consecutive week, with the TSE All-Share Index gaining 0.9% to finish at 77,847. Other Financial Services (+6.7%) was the top performing sector due to strong performances by Bahman Leasing Co. (BHLZ +15.2%), Industry & Mine Leasing Co. (LSMD +13.1%) and Iranian Leasing Co. (LIRZ +12.4%). A week earlier several leasing companies released their projections for the next financial year based on their nine-month performances. Bahman Leasing Co. has forecasted a 13% growth in net income for the next year (ending March 20, 2018) to IRR 325 billion (approx. USD 8.5 million). But updates from other companies were not so promising with lower results projected for the coming year. The weakest major sector of the week was Metallic Ore (-1.9%). Bama Mining & Industrial (BAMA -7.8%) and Iran Zinc Mines Development Investment Co. (ROOI -6.3%) were among the top losers of the mar­ket as well as the Metallic Ore sector. Bama has released its initial projections for the next financial year, forecasting a 9% fall in net profit from the current year to IRR 368 billion (approx. USD 9.7 million). In its initial projection for next year, Iran Zinc Mines Develop­ment Investment Company has forecasted a fall of 18% in its net profit to IRR 430 billion (approx. USD 11.3 million) compared with its forecast for the current year ending March 19.

 

The TSE30 index of the thirty largest companies by market capitalization closed at 3,137, up 0.5% from last week. Parsian Oil & Gas Development Co. (PASN +7.1%) rose the most in the top 30s, while Mellat Bank (BMLT -6.5%) was the weakest.

 

This week the Average Daily Trade Volume (ADTV) fell by 16% to USD 61 million. SAIPA Group (SIPA -0.8%), Asan Pardakht Co. (APPE +4.9%) and Iran Khodro Diesel Co. (KAVR -6.3%) recorded the highest weekly traded value with USD 6.9 million, USD 5.0 million and USD 4.5 million worth of trades respectively.

 

Iran Fara Bourse

The overall index of the Iran Fara Bourse closed up 2.1% at 867. However the IFB’s ADTV plunged 82% to USD 35 million. Despite a fall of 88% in volume, debt securities remained the most popular instrument on the IFB with USD 96 million traded.

 

Foreign Exchange Market

On the currency market, the official US dollar rate was quoted by the CBI at IRR 32,401, up 0.03% on last week. On the free market the dollar slipped 0.8% to IRR 37,819. The CBI reduced the official euro rate by 0.5% to IRR 34,226, while on the free market the eu­ro lost 1.3% to IRR 40,395. The British pound’s official rate edged down 0.1% to IRR 40,331, while sterling lost 0.1% to IRR 48,050 on the free market.

 

Economic Developments

The Central Bank of Iran released its latest inflation report on Thursday, publishing the Consumer Price Index for the 11th month of the Iranian calendar year. The CPI index rose 1.1% in the month ending February 18, compared with a gain of 0.8% over the previous month. Food & Beverage recorded the highest inflation of 2.8% for the 11th month while Telecommunication and Education both showed least price growth with zero inflation for the month. Year-on-year inflation was calculated at 10.6%, the highest reported since Oc­tober 2015 and up from 9.6% recorded the previous month. According to the latest CBI report, Health & Medical Care posted the highest year-on-year inflation rate of 17.1%, while the lowest price growth was seen by Clothing & Shoes with 6.0%.

 

FX Information

Description

23 February 2017

16 February 2017

% Change

Official USD - IRR

32,401

32,390

0.03

Market USD - IRR

37,819

38,108

(0.8)

Official EUR - IRR

34,226

34,382

(0.5)

Market EUR - IRR

40,395

40,912

(1.3)

Official GBP - IRR

40,331

40,364

(0.1)

Market GBP - IRR

48,050

48,100

(0.1)

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2016

TSE Overall Index—TEDPIX

77,847

687

0.9

(3.0)

TSE30 Index

3,137

14

0.5

(7.2)

Iran Fara Bourse Overall Index

867

17

2.1

7.6

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) **

61

73

(16)

IFB Average Daily Traded Val­ue (Million USD) **

35

203

(82)

Industry Index Information

Description

Close

% Change

Agriculture

7,912

10.8

Other Financial Services

2,184

6.7

Utility Service Providers

186

4.7

Printing & Publishing

126,197

4.4

Machinery & Electric Equipment

508,730

4.4

Paper Products

8,379

3.1

Non-Metallic Ores

2,220

2.7

Oil Products

197,692

2.7

Telecommunication

871

2.6

Machinery & Equipment

15,751

2.4

Chemicals

4,772

1.8

IT

8,854

1.7

Investment

1,760

1.5

Ceramics & Tiles

2,036

1.4

Automotive

17,768

1.2

Cement

716

1.1

Metallic Products

38,874

0.9

TSE All-Share Index

77,847

0.9

Insurance

4,924

0.7

Foods excluding Sugar

3,650

0.6

Industrial Conglomerates

7,111

0.5

Construction

751

0.3

Engineering Services

843

0.02

Rubber & Plastics

19,332

0.01

Coal Mining

1,265

0.0

Leather Production & Products

1,699

0.0

Medical & Measurement Products

10,244

0.0

Wooden Products

67,130

0.0

Textile

1,378

(0.1)

Sugar

5,535

(0.3)

Transportation & Logistics

3,834

(0.5)

Base Metals

34,948

(0.5)

Pharmaceuticals

8,980

(0.6)

Mining

16,968

(0.8)

Banking

599

(1.3)

Metallic Ore

13,769

(1.9)

Oil Drilling & Services

643

(3.2)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

TAZB

Azarbaijan Investment Dev. Co.

11.3

37.2

HFRS

Persian Gulf Transportation Co.

12.0

23.2

SWIC

Pars Switch Co.

30.6

22.0

SNRO

Niroo Investment Co.

4.9

21.9

DADE

Data Processing Iran

8.0

18.3

TSE Top 5 Losers

Company

Close **

(USD Cents)

% Change

GCOZ

Glucosan Co.

94.0

(10.0)

FRVR

Iran Mineral Processing Co.

28.3

(9.9)

BAMA

Bama Mining & Industrial Co.

19.0

(7.8)

BMLT

Mellat Bank

2.9

(6.5)

ROOI

Iran Zinc Mines Dev. Co.

7.0

(6.3)

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

SIPA

SAIPA Group

3.2

6.9

APPE

Asan Pardakht Co.

40.8

5.0

KAVR

Iran Khodro Diesel Co.

2.0

4.5

BTEJ

Tejarat Bank

2.0

4.2

TSRZ

Razi Glass Group

8.4

3.2

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

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