Weekly Market Report

Trading Week : 22 – 26 April 2017

Summary

Main Topics

- TSE main index continues positive run to close up 1.2% for the week

- Iran Fara Bourse finishes up 1.6% on higher volumes

- Inflation rises in April but at a slower pace

 

Tehran Stock Exchange

The Tehran Stock Exchange All-Share Index continued its positive trend this week, clos­ing at 79,596 for a gain of 1.2%. Paper Products (+14.3%) led risers among sectors over the week, boosted by a surge in Kaveh Paper Industries Co. (KSKA +14.9%), followed by Sugar (+10.5%) which saw broad gains across the sector. The weakest major sectors of the week were Metallic Products (-3.4%) which was weighed down by falls in Machine Sazi Arak Mfg. Co. (MARK -4.7%) and Azarb Industries Co. (AZAB -1.8%), while the Me­tallic Ore (-2.0%) sector was dragged down by lower prices for iron ore.

 

The TSE30 index of the thirty largest companies by market capitalization edged up 0.1% to close at 3,096. Esfahan Oil Refining Co. (PNES +7.4%) recorded the highest weekly gain. Golgohar Mining & Industrial Co. (GOLG -4.1%) dropped the most.  Blue chip stocks have been relatively steady in contrast with companies with smaller market capitalizations which have been more volatile in recent weeks.

 

This week the Average Daily Trade Volume (ADTV) fell 14% to USD 74 million. Trading in stocks regarded as more speculative also affected trading turnover. Some analysts sug­gest uncertainty surrounding the May 19 presidential election has made market players focus on very short term prospects. Most traded stocks were led by SAIPA Group (SIPA +1.1%), Asan Pardakht Persian Co. (APPE +3.6%) and Khorasan Sugar Co. (GSBE +18.4%) with USD 11.6 million, USD 7.6  million and USD 4.7 million in trades respective­ly. 

 

Iran Fara Bourse

The overall index of the Iran Fara Bourse closed up 1.6% for the week at 922. Market ADTV rose 33% to USD 72 million. Equities remained the most popular securities on the IFB with a total traded value of USD 201 million. The majority of trades were carried out on the Base Market accounting for USD 133 million, which has the lightest regulatory framework and often includes companies with the lowest market capitalization. Since the beginning of the new Iranian calendar year, the total traded value on the Base Market has surged by 175% following the availability of direct online trading in this market.

 

Foreign Exchange Market

On the currency market the official rate of the US dollar was left unchanged by the Central Bank of Iran at IRR 32,439. On the free market the US dollar rose 0.2% to IRR 37,546. The CBI increased the official rate of the euro by 1.8% to IRR 35,403 while it gained 2.1% on the free market to IRR 40,502. The official rate of the British pound gained 0.7% to IRR 41,755 and on the free market it rose 1.1% to IRR 48,000.

 

Economic Developments

Inflation is increasing but at a slower rate according to the latest data released by the Cen­tral Bank of Iran. The consumer price index for the first month of the Iranian calendar year ending April 20, 2017 gained 1.1%, following a 2% increase a month earlier. On a yearly basis inflation has steadily risen to 12.6% in April from a recent low of 9.1% in November. The highest monthly price rises for April were posted by Leisure and Cultural Affairs (+3.3%) and Foods & Beverages (+2.9%). At the other end of the scale Education re­mained unchanged. On a yearly basis the highest increases were seen in Foods & Bever­ages which rose 19.9% and Health Care which gained 16.9%. Communication was the category with the lowest inflation of 6.8% over 12 months. Following the trend of the previ­ous month the main drivers of inflation in Foods & Beverage were higher prices for eggs (+9.4%), fresh fruits (+7.6%) and fresh vegetables (+6.0%).

 

Separately the Statistical Centre of Iran updated employment figures showing that over 615,000 jobs were added in the Iranian calendar year ending March 20, 2017. Total em­ployment rose 2.5% to 22.5 million over the year. Under Hassan Rouhani’s presidency an average of 490,000 jobs have been added annually, which is 49% higher than the yearly average recorded over the previous 13 years. 

FX Information

Description

27 April 2017

20 April 2017

% Change

Official USD - IRR

32,439

32,440

(0.0)

Market USD - IRR

37,546

37,457

0.2

Official EUR - IRR

35,403

34,762

1.8

Market EUR - IRR

40,502

39,661

2.1

Official GBP - IRR

41,755

41,475

0.7

Market GBP - IRR

48,000

47,500

1.1

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2016

TSE Overall Index—TEDPIX

79,596

945

1.2

3.7

TSE30 Index

3,096

4

0.1

0.6

Iran Fara Bourse Overall Index

922

14

1.6

5.4

Description

This Period

Last Period

Market P/E

7.1

6.9

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

74

87

(14)

IFB Average Daily Traded Val­ue (Million USD) **

72

54

33

Industry Index Information

Description

Close

% Change

Coal Mining

1,546

22.3

Paper Products

11,732

14.3

Sugar

7,223

10.5

Other Financial Services

2,691

8.9

Rubber & Plastics

22,430

4.3

Oil Products

223,136

4.0

Foods excluding Sugar

3,861

3.9

Wooden Products

70,706

3.2

Chemicals

4,873

2.9

Investment

1,970

2.8

IT

10,986

2.7

Machinery & Equipment

17,343

2.1

Construction

817

2.0

Pharmaceuticals

9,364

1.9

Cement

758

1.9

Automotive

19,530

1.5

Utility Service Providers

195

1.4

Non-Metallic Ores

2,483

1.3

Telecommunication

875

1.3

TSE All-Share Index

79,597

1.2

Leather Production & Products

1,704

0.7

Transportation & Logistics

3,892

0.5

Textile

1,406

0.4

Medical & Measurement Products

10,244

0.0

Mining

16,981

0.0

Printing & Publishing

153,943

0.0

Banking

571

(0.1)

Engineering Services

779

(0.3)

Industrial Conglomerates

7,176

(0.8)

Ceramics & Tiles

2,356

(0.9)

Machinery & Electric Equipment

540,265

(1.0)

Base Metals

32,789

(1.4)

Oil Drilling & Services

720

(1.8)

Insurance

5,230

(1.9)

Metallic Ore

13,078

(2.0)

Metallic Products

33,515

(3.4)

Agriculture

7,694

(4.6)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

GESF

Isfahan Sugar Co.

19.5

44.7

TAYD

TideWater Middle East Co.

10.9

20.9

JHRM

Jahrom Power Generation Co.

2.4

20.9

SHPZ

Pegah Dairy Co.

5.3

20.4

GSBE

Khorasan Sugar Co.

4.9

18.4

TSE Top 5 Losers

Company

Close **

(USD Cents)

% Change

PLAK

Polyacryl Iran Corp.

1.7

(10.9)

SHMD

Hamadan Glass Co

22.4

(9.0)

SROD

Shahroud Cement Co.

4.4

(8.8)

GBEH

Behshahr Industrial Group

3.3

(7.4)

DRKH

Derakhshan Tehran Co.

12.6

(6.9)

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

SIPA

SAIPA Group

3.6

11.6

APPE

Asan Pardakht Persian Co.

70.2

7.6

GSBE

Khorasan Sugar Co.

4.9

4.7

SAJN

Sakht Ajand Co.

9.8

4.1

PTEH

Tehran Oil Refining Co.

7.1

4.1

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

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