Weekly Market Report

Trading Week : 29 April  – 3 May 2017

Summary

Main Topics

- TSE All-Share Index reaches 2017 high

- Investors return to debt securities on Iran Fara Bourse

- Unemployment hits 12.4%, highest in six years

 

Tehran Stock Exchange

The TSE All-Share Index advanced for the seventh consecutive week to close up 0.5% at 79,969, setting a new high for 2017. Major sectors were again led by Paper Products (+13.2%), boosted by Kaveh Paper Industries Co. (KSKA +24.7%), followed by IT (+7.8%) with broad growth across the technology sector. The biggest faller was Engineering Ser­vices (-6.8%), dragged down by MAPNA Group (MAPN -6.9%).

 

The TSE30 index of the thirty largest companies by market capitalization edged up 0.3% to close at 3,104. Informatic Services Corp. (INFO +16.9%) led gainers in the top 30s, benefiting from investors’ appetite for a majority of IT companies. The biggest faller of the index was SAIPA Group (SIPA -6.0%), following the pattern of most stocks in the Automo­tive sector (-3.3%).

 

The Average Daily Trade Volume (ADTV) fell for a second week, losing 14% to USD 63 million. Stocks with the highest weekly traded value were led by Bandar Abbas Oil Refin­ing Co. (PNBA +3.6%), Asan Pardakht Persian Co. (APPE +0.6%) and SAIPA Group (SIPA -6.0%) with USD 15.6 million, USD 9.2 million and USD 9.1 million respectively.

 

Iran Fara Bourse

The Iran Fara Bourse overall index rose 1.6% to close at 937 while its ADTV dropped 9% to USD 65 million. This week the total traded value of debt securities was higher than oth­er instruments, reaching USD 170 million for growth of 119% over the week. Less interest in equities on the Base Market drove total trade volume on this market down by 47% to USD 71 million. Trading on the Base Market had been growing constantly since the start of the new Iranian year on March 21.

 

Foreign Exchange Market

On the FX market, the Central Bank of Iran quoted the official rate of the US dollar at IRR 32,443, up 0.01% from last week. On the free market the dollar rose 0.1% to IRR 37,590. The official euro rate set by the CBI fell slightly to IRR 35,346 but the euro gained 1% on the free market to IRR 40,918. The CBI raised the official rate of the British pound by 0.04% to IRR 41,772 while sterling added 0.6% on the free market to IRR 48,300.

 

Economic Developments

Iran’s jobless rate reached 12.4% in the year ending March 20, 2017, setting its highest level in six years and rising from 11.0% in the previous year, according to the Statistical Centre of Iran. Its job market report for the last Iranian calendar year stated a labor force participation rate of 39.4%, up from 38.2% a year earlier. From 2005 to 2011 the participa­tion rate fell from 41% to 36.9% and has been recovering since then. The total number of employed in the last Iranian year was 22.5 million out of an active population of 25.7 mil­lion. The largest sector was services with 11.3 million workers. Industry accounted for 4.2 million workers, while agriculture employed 4 million and construction 2.9 million. Industry posted the highest growth in employment of 3%, while construction fell by 2.5%.

FX Information

Description

4 May 2017

27 April 2017

% Change

Official USD - IRR

32,443

32,439

0.01

Market USD - IRR

37,590

37,546

0.1

Official EUR - IRR

35,346

35,403

(0.2)

Market EUR - IRR

40,918

40,502

1.0

Official GBP - IRR

41,772

41,755

0.04

Market GBP - IRR

48,300

48,000

0.6

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2016

TSE Overall Index—TEDPIX

79,969

372

0.5

4.2

TSE30 Index

3,104

8

0.3

0.9

Iran Fara Bourse Overall Index

936

14

1.6

7.0

Description

This Period

Last Period

Market P/E

7.0

7.1

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

63

74

(14)

IFB Average Daily Traded Val­ue (Million USD) **

65

72

(9)

Industry Index Information

Description

Close

% Change

Printing & Publishing

186,100

20.9

Paper Products

13,282

13.2

Mining

18,634

9.7

IT

11,843

7.8

Sugar

7,747

7.3

Wooden Products

73,784

4.4

Non-Metallic Ores

2,585

4.1

Telecommunication

906

3.5

Rubber & Plastics

23,107

3.0

Oil Products

227,191

1.8

Machinery & Electric Equipment

549,672

1.7

Banking

580

1.6

Transportation & Logistics

3,940

1.2

Insurance

5,294

1.2

Pharmaceuticals

9,475

1.2

Base Metals

33,036

0.8

Metallic Ore

13,161

0.6

Investment

1,981

0.6

Foods excluding Sugar

3,881

0.5

TSE All-Share Index

79,969

0.5

Textile

1,409

0.2

Leather Production & Products

1,704

0.0

Medical & Measurement Products

10,244

0.0

Industrial Conglomerates

7,162

(0.2)

Ceramics & Tiles

2,345

(0.5)

Construction

812

(0.6)

Machinery & Equipment

17,241

(0.6)

Chemicals

4,842

(0.6)

Other Financial Services

2,667

(0.9)

Cement

746

(1.6)

Oil Drilling & Services

708

(1.7)

Metallic Products

32,896

(1.8)

Coal Mining

1,511

(2.3)

Agriculture

7,476

(2.8)

Utility Service Providers

189

(2.9)

Automotive

18,878

(3.3)

Engineering Services

726

(6.8)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

SHAD

ShahdIran Inc.

6.6

58.6

KFAN

Khavar Spring Mfg. Co.

10.9

46.4

KSKA

Kaveh Paper Industries Co.

12.8

24.7

GNBO

Neyshabour Sugar Co.

7.0

23.7

GESF

Esfahan Sugar Co.

23.6

21.1

TSE Top 5 Losers

Company

Close **

(USD Cents)

% Change

TKSM

Takceram Tile Manufacturing Co.

5.5

(19.4)

HJPT

Petrochemical Transportation Eng.

15.4

(13.3)

PAKS

Paxan Co.

15.9

(10.9)

LAPS

Pars Shahab Lamp Co.

19.6

(10.3)

DADE

Data Processing Iran Co.

10.4

(10.1)

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

PNBA

Bandar Abbas Oil Refining Co.

14.3

15.6

APPE

Asan Pardakht Persian Co.

70.5

9.2

SIPA

SAIPA Group

3.4

9.1

PTEH

Tehran Oil Refining Co.

7.4

7.2

PKOD

Pars Khodro

2.8

6.3

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

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