Weekly Market Report

Trading Week: 16 - 20 September 2017

Summary

Main Topics

- Tehran Stock Exchange bounces back with 2.8% gain

- Demand for debt securities lifts Iran Fara Bourse by 1.4%

- Iran petrochemical output rises 9% to 50 million tonnes

 

Tehran Stock Exchange

Tehran stocks grew strongly in this last trading week of summer, with the TSE All-Share Index closing up 2.8% at 85,831 to hit its highest since January 2013. The top performing major sector was Engineering Services (+8.7%), helped by MAPNA Group (MAPN +8.6%) recovering from a five-month decline. Some analysts saw this growth as a market reaction to overselling of Iran’s biggest contractor. The biggest faller of the week among sectors was IT (-1.1%), dragged down by Informatic Services Corp. (INFO -1.1%) and Asan Pardakht Persian Co. (APPE -2.3%).

 

The TSE30 index of the thirty largest companies by market capitalization posted stronger gains than the market average, adding 3.7% to end the week at 3,523. Most of the top 30s closed in positive territory. Tehran Oil Refining Co. (PTEH +10.7%) saw the highest week­ly gain, while National Iranian Copper Industries Co. (MSMI -1.1%) and Informatic Ser­vices Corp. (INFO -1.1%) were the weakest.

 

This week the Average Daily Trade Volume rose 7% to USD 60 million. Despite a number of block trades, the main driver was interest in blue chips. Most traded stocks by value included Esfahan Oil Refining Co. (PNES +4.1%), Golgohar Mining & Industrial Co. (GOLG +6.3%) and SAIPA Group (SIPA +2.3%) with volume of USD 7.6 million, USD 7.1 million and USD 7.0 million respectively.

 

Iran Fara Bourse

The Iran Fara Bourse overall index advanced 1.4% over the week to close at 957, while its ADTV surged 55% to USD 62 million. Debt securities were the most traded instrument on the IFB with total value of USD 239 million.

 

Foreign Exchange Market

The Central Bank of Iran increased the official rate of the US dollar by 0.3% to IRR 33,570 while its free market rate slipped 0.4% to IRR 39,047. The official euro rate was quoted up 0.4% at IRR 39,899 while on the free market it dropped 0.1% to IRR 46,871. The official rate of the British pound increased 2.5% to IRR 45,292 and on the free market sterling added 1.6% to IRR 52,300.

 

Economic Development

Iran’s total petrochemicals output increased 9% to 50.6 million tonnes in the Iranian calen­dar year ending March 2017, according to the annual report of Iran National Petrochemi­cal Company (NPC). Despite the gain, production remained 11.3 million tonnes below ca­pacity which increased by almost 7% to 61.9 million tonnes. There are still several ongo­ing development plans to scale up the volume of petrochemical products to 100 million tonnes per year. Shortage of gas feedstock has been the main reason keeping production below capacity. With current investments in South Pars gas it is expected that supplies to petrochemical complexes should be assured in the next four years.

Total net sales of petrochemicals dipped 0.6% over the year to USD 14.4 billion. Export revenues rose to USD 9.8 billion from USD 9.5 billion, but domestic sales fell in US dollar terms due to the 9% increase in the official rate of the dollar against the Iranian rial. NPC applies the official US dollar rate for most domestic sales. 

FX Information

Description

21 September 2017

14 September 2017

% Change

Official USD - IRR

33,570

33,460

0.3

Market USD - IRR

39,047

39,187

(0.4)

Official EUR - IRR

39,899

39,744

0.4

Market EUR - IRR

46,871

46,920

(0.1)

Official GBP - IRR

45,292

44,178

2.5

Market GBP - IRR

52,300

51,500

1.6

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2017

TSE Overall Index - TEDPIX

85,831

2,308

2.8

11.9

TSE30 Index

3,523

125

3.7

14.5

Iran Fara Bourse Overall Index

957

13

1.4

9.4

Description

This Period

Last Period

Market P/E

6.8

6.6

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

60

56

7

IFB Average Daily Traded Val­ue (Million USD) **

62

40

55

Industry Index Information

Description

Close

% Change

Engineering Services

692

8.7

Coal Mining

1,363

7.9

Leather Production & Products

2,045

5.7

Metallic Ore

17,025

5.5

Oil Products

260,942

5.3

Telecommunication

999

4.8

Printing & Publishing

198,994

4.4

Automotive

17,593

4.3

Rubber & Plastics

23,022

4.2

Other Financial Services

2,270

3.8

Transportation & Logistics

4,109

3.6

Industrial Conglomerates

7,909

3.3

Base Metals

45,379

3.1

TSE All-Share Index

85,832

2.8

Oil Drilling & Services

463

2.5

Pharmaceuticals

9,360

2.4

Agriculture

7,217

2.4

Investment

1,941

2.4

Metallic Products

31,534

2.1

Machinery & Equipment

16,001

2.0

Non-Metallic Ores

2,333

1.8

Chemicals

5,053

1.8

Machinery & Electric Equipment

496,003

1.4

Paper Products

13,385

1.2

Insurance

5,033

1.1

Foods excluding Sugar

3,729

1.0

Utility Service Providers

206

0.5

Sugar

8,814

0.5

Cement

677

0.3

Ceramics & Tiles

2,333

0.2

Medical & Measurement Products

10,244

0.0

Textile

1,308

0.0

Construction

696

(0.0)

Banking

565

(0.4)

Wooden Products

55,816

(0.9)

IT

12,478

(1.1)

Mining

12,805

(1.7)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

CHDN

Chodansazan Industrial Co.

6.7

27.5

HWEB

Hi Web

8.9

21.5

DSBH

Sobhan Darou Co.

16.7

15.6

ROZD

Rouz Darou Co.

6.4

15.6

GPSH

Piranshahr Sugar Co.

23.9

13.4

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

PNES

Esfahan Oil Refining Co.

8.5

7.6

GOLG

Golgohar Mining & Industrial Co.

7.4

7.1

SIPA

SAIPA Group

3.0

7.0

FOLD

Esfahan Mobarakeh Steel Co.

5.2

6.5

IPTR

Iranian Inv. Petrochemical Group

3.8

4.7

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

Turquoise Partners - Firouzeh Asia Brokerage

All Rights Reserved - 2017

Follow us on