Weekly Market Report

Trading Week : 29 July - 2 August 2017

Summary

Main Topics

- Tehran Stock Exchange slips from one-year highs

- IFB gains over 1% but volumes edge down

- Non-oil trade posts USD 2.4 billion deficit over four months

 

Tehran Stock Exchange

Tehran stocks traded around one-year highs but ended slightly lower over the week, with the TSE All-Share Index slipping 0.3% to close at 81,265. Ceramics & Tiles (+7.0%) was the top performing sector with broad gains across the index led by Takceram Tile Manu­facturing Co. (TKSM +27.9%). Its ticker reopened on Saturday after holding its AGM and surged 20.95% on strong speculative demand. The biggest faller of the week was Trans­portation & Logistics (-4.6%) with the sector mainly affected by Islamic Republic of Iran Shipping Lines (KSHJ -5.1%).

 

The TSE30 index of the thirty largest companies by market capitalization added 0.1% over the week to close at 3,246. Tehran Oil Refining Co. (PTEH +8.39%) and Bandar Abbas Oil Refining Co. (PNBA +2.44%) rose the most in the top 30s. Both companies returned to trading on the TSE this week and saw significant demand. The weakest shares in the top 30s were Islamic Republic of Iran Shipping Lines (KSHJ -5.1%) and urea producer Pardis Petrochemical Co. (PRDZ -5.0%).

 

This week the Average Daily Trade Volume (ADTV) dropped 28% to USD 51 million, the market’s lowest for three weeks. The most traded stock by value was Behpardakht Mellat Co. (PRKT +2.6%) with volume of USD 14.6 million, followed by Esfahan Mobarakeh Steel Co. (FOLD +0.65%) and National Iranian Copper Industries Co. (MSMI +1.87%), which both posted trading volumes of USD 6.1 million.

 

Iran Fara Bourse

The Iran Fara Bourse overall index rose 1.2% to close at 931, while its ADTV fell 5% over the week to USD 37 million. Debt securities remained the most traded instrument on the IFB, although volumes fell 13% to USD 110 million.

 

Foreign Exchange Market

On the forex market the Iranian rial lost more ground. The Central Bank of Iran quoted the official rate of the US dollar 0.2% higher at IRR 32,721. On the free market, the dollar gained 0.5% over the week to IRR 38,098. The official rate of the euro was set 1% higher at IRR 38,814 but on the free market it gained 2.9% to IRR 45,142.  The official rate of the British pound rose 0.7% to IRR 43,320, with its free market edging up 0.3% to IRR 49,700.

 

Economic Developments

Tehran home sales fell 5.4% in the month ending July 22 to 14,533 units, down 2.5% from the same month last year. The average price of one square meter of residential space rose 1.2% over the month to USD 1,212, making an annual increase of 6.2%. Over the first four months of the Iranian calendar year starting March 21, 2017, Tehran home sales slipped 0.01% compared to the same year-ago period to 51,653 units. Over two years, growth has increased by 11.6%. The average price per square meter over the past four months was USD 1,186, up 5.2% from the same year-ago period and up 8.1% from two years ago.

 

Iran’s non-oil trade posted a USD 2.4 billion deficit in the four months to July 22, according to the Islamic Republic of Iran Customs Administration (IRICA), with imports totaling USD 15.8 billion and exports USD 13.4 billion. IRICA reported that Iran had a USD 0.3 billion non-oil trade surplus in the Iranian year ending March 20, 2017. Export revenues fell 9.5% and imports rose 23.9%. The average price of imported goods increased by 9.2% a tonne over the year to USD 1,399 while exports per tonne rose 2.3% to USD 358. In volume terms, Iranian exports fell 11.5% over the year while imports gained 13.5%.

 

In the four months ending July 22, petrochemical products and gas condensates remained as Iran’s top export items, recording USD 4.6 billion and USD 2.3 billion in export revenue respectively. Compared to last year, the volume of petrochemical exports has dropped by 3.6% to 9.5 million tons, while its export revenue has also fallen by 3.7%. Similarly, Iran has exported 2.7% less of gas condensates with records standing at 5.9 million tons, gain­ing the country 4.1% less export revenue compared with last year. The top imported items in the reported period include rice (3.8%), corn feedstock (3.1%), motor vehicles with en­gine capacities of 1500 -2,000 cc (2.7%) and soybean (2.1%), costing USD 603 million, USD 484 million, USD 426 million and USD 328 million respectively.

FX Information

Description

3 August 2017

27 July 2017

% Change

Official USD - IRR

32,771

32,715

0.2

Market USD - IRR

38,098

37,907

0.5

Official EUR - IRR

38,814

38,419

1.0

Market EUR - IRR

45,142

43,861

2.9

Official GBP - IRR

43,320

43,000

0.7

Market GBP - IRR

49,700

49,550

0.3

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2017

TSE Overall Index - TEDPIX

81,265

(243)

(0.3)

5.9

TSE30 Index

3,246

2

0.1

5.5

Iran Fara Bourse Overall Index

931

11

1.2

6.4

Description

This Period

Last Period

Market P/E

6.9

7.0

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

51

71

(28)

IFB Average Daily Traded Val­ue (Million USD) **

37

39

(5)

Industry Index Information

Description

Close

% Change

Ceramics & Tiles

2,450

7.0

Printing & Publishing

184,559

6.2

Coal Mining

1,425

5.5

Wooden Products

59,307

4.1

Oil Products

221,967

2.2

Machinery & Electric Equipment

514,546

1.2

Sugar

9,190

1.0

Insurance

5,167

0.7

Metallic Ore

14,463

0.4

Utility Service Providers

195

0.3

Base Metals

39,836

0.1

Mining

16,305

0.04

Leather Production & Products

1,789

0.0

Medical & Measurement Products

10,244

0.0

Oil Drilling & Services

604

0.0

Textile

1,376

0.0

Engineering Services

693

(0.0)

Automotive

18,262

(0.2)

Banking

575

(0.2)

Industrial Conglomerates

7,620

(0.2)

Foods excluding Sugar

3,815

(0.3)

TSE All-Share Index

81,266

(0.3)

Telecommunication

952

(0.3)

Pharmaceuticals

9,196

(0.4)

Metallic Products

30,714

(0.5)

Non-Metallic Ores

2,454

(0.5)

Investment

1,916

(0.8)

IT

12,957

(1.0)

Chemicals

4,696

(1.0)

Machinery & Equipment

16,326

(1.1)

Cement

732

(1.4)

Agriculture

7,005

(1.8)

Rubber & Plastics

22,948

(1.8)

Other Financial Services

2,379

(1.9)

Construction

779

(2.9)

Paper Products

12,775

(3.5)

Transportation & Logistics

3,339

(4.6)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

ATIR

Iran Tractor Forging Co.

7.7

27.9

TKSM

Takceram Tile Manufacturing Co. 

9.4

27.9

GSHI

Khorasan Shirin Sugar Co. 

64.2

21.2

CHCH

ChinChin Agro-Industrial Co.

21.6

12.6

SHAD

Shahdiran Inc.

7.5

11.0

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

PRKT

Behpardakht Mellat Co.

60.8

14.6

FOLD

Esfahan Mobarakeh Steel Co.

4.4

6.1

MSMI

National Iranian Copper Ind. Co.

4.9

6.1

TKSM

Takceram Tile Manufacturing Co.

9.4

4.7

PNBA

Bandar Abbas Oil Refining Co.

12.1

4.2

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

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