Weekly Market Report

Trading Week : 10 – 14 June 2017

Summary

Main Topics

- Tehran Stock Exchange falls further as AGM season arrives

- Speculative demand for equities boosts IFB

- Iranian rial strengthens against major currencies

 

Tehran Stock Exchange

The Tehran Stock Exchange All-Share Index dropped for the third consecutive week, clos­ing down 0.4% at 79,465. The index had risen for three months up to the last week of May, reaching 2-1/2 year highs of 81,200 but has since retreated by 2.1%. Some analysts believe the recent tensions between Persian Gulf countries and the terrorist attacks in Tehran may have resulted in risk aversion in the market. However, by considering historic trends in  in recent years, the TSE’s overall performance during June has not been prom­ising as the majority of listed companies hold their AGMs in June and July. The ticker of companies holding AGMs are taken off the trading board two trading days in advance of the meeting. In the trading week ending June 15 sectors barely saw significant growth. Machinery & Electric Equipment (+2.4%) rose the most, while Ceramics & Tiles (-5.3%) led fallers, taking its decline over the last three weeks to more than 14%.

 

The TSE30 index of the thirty largest companies by market capitalization slipped 0.5% to close at 3,080. Most of the top 30s ended in negative territory, while Bandar Abbas Oil Refining Co. (PNBA -4.6%) weighed most on the index. The slight gain over the week of Iran Khodro (IKCO +0.71%), the biggest car producer in Iran, was the highest of the TSE30 constituents.

 

This week the Average Daily Trade Volume (ADTV) rose 8% to USD 36 million, supported by trading in debt securities and block trades. The highest volumes were posted by Sakht Ajand (SAJN +6.5%), Barez Industrial Group (BARZ +1.3%) and Bandar Abbas Oil Refin­ing Co. (PNBA -4.6%) with USD 6.1 million, USD 3.7 million and USD 1.8 million respec­tively. 

 

Iran Fara Bourse

The overall index of the Iran Fara Bourse added 0.2% to 902 while the market’s ADTV declined 11% to USD 36 million. Equities were the securities most in demand on the IFB, recording total traded value of USD 118 million. The market trend for stocks was triggered by speculative trades in companies listed on the Base Market of Iran Fara Bourse.

 

Foreign Exchange Market

The Iranian rial strengthened over the week against major currencies. The Central Bank of Iran left the official rate of the US dollar unchanged at IRR 32,457 while its free market rate dropped 0.1% to IRR 37,282. The CBI lowered the official rate of the euro by 0.4% to IRR 36,411 while on the free market the euro dropped 0.5% to IRR 41,796. The British pound’s official rate fell 1.6% to IRR 41,356 and slipped 0.1% on the free market to IRR 48,400.

FX Information

Description

15 June 2017

8 June 2017

% Change

Official USD - IRR

32,457

32,454

0.0

Market USD - IRR

37,282

37,330

(0.1)

Official EUR - IRR

36,411

36,539

(0.4)

Market EUR - IRR

41,796

42,014

(0.5)

Official GBP - IRR

41,356

42,049

(1.6)

Market GBP - IRR

48,400

48,450

(0.1)

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2017

TSE Overall Index—TEDPIX

79,465

(292.8)

(0.4)

3.6

TSE30 Index

3,080

(14.0)

(0.5)

0.1

Iran Fara Bourse Overall Index

902

1.4

0.2

3.1

Description

This Period

Last Period

Market P/E

6.9

6.9

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

36

34

8.1

IFB Average Daily Traded Val­ue (Million USD) **

36

41

(11.3)

Industry Index Information

Description

Close

% Change

Agriculture

7,740

7.9

Mining

16,866

4.3

Paper Products

13,017

3.3

Machinery & Electric Equipment

543,242

2.4

Automotive

18,803

1.4

Investment

1,941

0.7

Industrial Conglomerates

7,456

0.6

Other Financial Services

2,548

0.5

Foods excluding Sugar

3,864

0.2

Metallic Products

30,709

0.2

Construction

755

0.2

Utility Service Providers

193

0.1

Base Metals

32,959

0.1

Leather Production & Products

1,737

0.0

Medical & Measurement Products

10,244

0.0

Textile

1,450

0.0

Wooden Products

62,458

0.0

Rubber & Plastics

23,010

(0.0)

Banking

579

(0.1)

IT

12,480

(0.1)

Cement

711

(0.2)

Telecommunication

919

(0.2)

Pharmaceuticals

9,573

(0.2)

TSE All-Share Index

79,466

(0.4)

Printing & Publishing

196,324

(0.4)

Chemicals

4,814

(0.6)

Machinery & Equipment

16,378

(0.8)

Metallic Ore

12,553

(0.8)

Sugar

8,158

(0.9)

Insurance

5,155

(1.0)

Engineering Services

697

(1.2)

Non-Metallic Ores

2,359

(1.2)

Transportation & Logistics

3,944

(2.6)

Oil Products

216,519

(2.8)

Coal Mining

1,259

(3.1)

Ceramics & Tiles

2,056

(5.3)

Oil Drilling & Services

638

(5.7)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

NIRO

Niroo Trans Co.

19.2

19.9

JOSH

Jooshkab Yazd Industries Co.

51.0

14.3

ATIR

Iran Tractor Forging Co.

7.0

12.2

BHMN

Bahman Group

5.8

8.4

INDM

Indamin SAIPA Mfg. Co.

2.5

7.6

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

SAJN

Sakht Ajand

9.0

6.1

BARZ

Barez Industrial Group

8.9

3.7

PNBA

Bandar Abbas Oil Refining Co.

13.7

1.8

PKOD

Pars Khodro

2.6

1.7

BIME

Insurance Industry Investment Co.

9.5

1.6

** 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