Weekly Market Report

Trading Week : 15 – 19 April 2017

Summary

Main Topics

- TSE All-Share Index gains 2.5% in first month of new Iranian year

- New regulations bring further volatility to Iran Fara Bourse

- Iran’s car production continues post-sanctions recovery

 

Tehran Stock Exchange

The TSE All-Share Index continued its positive run for the fourth consecutive week of the new Iranian calendar year, adding 0.7% to close at 78,651. Sugar (+7.7%) and IT (+6.6%) led gainers among sectors, while Telecommunication (-3.1%) was the weakest. The ma­jority of sugar companies rose for the fourth straight week while the IT sector was boosted mainly by a single company, Asan Pardakht Persian Co. (APPE +25.9%). However some analysts believe the 45% surge in the share price of the e-payment company in the first month of the Iranian calendar year is based on speculation. There is a sentiment among observers that the market has not chosen its top pick sectors yet and for this reason de­mand has been switching from sector to sector over the last four weeks. However Tele­communication has been heading south in the last weeks. Telecommunication Company of Iran (MKBT -5.4%) has a plan to adjust the structure of its subsidiaries, including Mobile Telecommunication Company of Iran (HRMZ -0.9%), although details of the plan have not been made public. In addition MCI has announced its intention to raise capital to develop internet services through SIM cards. MCI plans to increase its registered capital by IRR 8,000 billion (approx. USD 213 million), or 200%. Since the announcement MCI has lost almost 3% on the TSE. It will hold its AGM and EGM on April 26.

 

The TSE30 index of the thirty largest companies by market capitalization rose 0.6% over the week to close at 3,091. Metals & Mines Development Inv. Co. (MADN +5.8%) was the top gainer. Telecommunication Company of Iran (MKBT -5.4%) was the biggest faller.

 

This week the Average Daily Trade Volume (ADTV) continued to increase, adding 16% to USD 87 million. Stocks with the highest weekly traded value were led by Asan Pardakht Persian Co. (APPE +25.9%), SAIPA Group (SIPA +1.8%) and Iran Khodro (IKCO -3.6%) with USD 23.4 million, USD 16.5 million and USD 8.6 million in trades respectively.

 

Iran Fara Bourse

The overall index of the Iran Fara Bourse (IFB) closed at 907 points for a gain of 1.3% over the week. The volume of weekly trades and the number of securities exchanged have not been published by the IFB yet. Over the four weeks of the new Iranian calendar year, shares on the Base Markets of IFB have seen higher demand and posted significant increases. This has followed a decision by the IFB to provide online trading for stocks listed on these markets since the start of the new year. Furthermore the previous unlimited daily change for share prices of stocks on the Base Markets has been replaced by a 10% daily range.

 

Foreign Exchange Market

Relative stability on the FX market has continued. The official US dollar rate gained 0.01% over the week, quoted by the Central Bank of Iran at IRR 32,440. On the free market the dollar slipped 0.2% to IRR 37,457. The CBI increased the official euro rate by 0.4% to IRR 34,762 while it fell 1% to IRR 39,661 on the free market. The official rate of the British pound was raised 1.8% by the CBI to IRR 41,475 while its free market rate added 1% to IRR 47,500.

 

Economic Developments

The Iran Vehicle Manufacturing Association reported 38% growth in vehicle production to 1.3 million units in the Iranian calendar year ending March 20, 2017. This is the highest level since sanctions were imposed on Iran in 2012, causing output to fall from 1.6 million in the Iranian calendar year ending March 2012 to 737,000 within two years. Following the improvement in political relations with European countries, domestic car manufacturing companies have reestablished ties with Peugeot and Renault. In the last year Iran Khodro raised output by 31% and SAIPA by 58%. SAIPA is growing faster and has boosted pro­duction to nearly 518,000 units but Iran Khodro remains the largest manufacturer, produc­ing close to 638,500 vehicles. Iran Khodro made 288,000 Peugeot cars over the year, rep­resenting 45% of the company’s total production and about 20% of the country’s total out­put. One year earlier Peugeot’s share of total national output was 36% with 346,000 cars, with the decline due to lower output of the Peugeot 405 and Pars models. Iran Khodro and Peugeot have signed a joint venture agreement to produce newer versions of the French automaker’s cars in Iran, which may boost its market share in the next years. Production of Renault cars by Pars Khodro, a subsidiary of SAIPA Group, rose 158% in the Iranian year just ended to just under 83,000 units.

FX Information

Description

20 April 2017

13 April 2017

% Change

Official USD - IRR

32,440

32,436

0.01

Market USD - IRR

37,457

37,523

(0.2)

Official EUR - IRR

34,762

34,616

0.4

Market EUR - IRR

39,661

40,053

(1.0)

Official GBP - IRR

41,475

40,752

1.8

Market GBP - IRR

47,500

47,050

1.0

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2016

TSE Overall Index—TEDPIX

78,651

519

0.7

2.5

TSE30 Index

3,091

18

0.6

0.5

Iran Fara Bourse Overall Index

907

11

1.3

3.7

Description

This Period

Last Period

Market P/E

7.4

7.3

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

87

72

16

IFB Average Daily Traded Val­ue (Million USD) **

NA

46

-

Industry Index Information

Description

Close

% Change

Sugar

6,536

7.7

IT

10,697

6.6

Paper Products

10,267

4.8

Engineering Services

781

4.1

Oil Products

214,525

3.9

Machinery & Electric Equipment

545,961

1.7

Metallic Ore

13,347

1.6

Agriculture

8,062

1.5

Base Metals

33,252

1.1

Utility Service Providers

193

0.9

Textile

1,400

0.9

Chemicals

4,735

0.8

TSE All-Share Index

78,651

0.7

Automotive

19,247

0.6

Insurance

5,329

0.5

Pharmaceuticals

9,189

0.5

Other Financial Services

2,471

0.4

Foods excluding Sugar

3,717

0.3

Industrial Conglomerates

7,237

0.2

Oil Drilling & Services

733

0.2

Ceramics & Tiles

2,377

0.2

Leather Production & Products

1,691

0.04

Investment

1,916

0.01

Coal Mining

1,265

0.0

Medical & Measurement Products

10,244

0.0

Mining

16,981

0.0

Metallic Products

34,681

(0.3)

Banking

571

(0.5)

Printing & Publishing

153,943

(0.6)

Machinery & Equipment

16,988

(0.6)

Transportation & Logistics

3,874

(0.9)

Rubber & Plastics

21,507

(1.0)

Cement

744

(1.1)

Non-Metallic Ores

2,451

(1.4)

Construction

801

(1.9)

Wooden Products

68,484

(2.3)

Telecommunication

864

(3.1)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

SEFH

Isfahan Cement Co. 

40.7

26.2

BMPS

Pars International Mfg. Co.

8.6

25.9

APPE

Asan Pardakht Persian Co.

67.9

25.9

BENN

Behnoush Iran Co.

16.0

24.8

GLOR

Lorestan Sugar Co.

13.7

21.1

TSE Top 5 Losers

Company

Close **

(USD Cents)

% Change

ALVN

Alvand Tile And Ceramic Ind. Co.

5.9

(11.6)

NSAZ

Azar Refractories Co. 

5.8

(11.4)

MELT

Mellat Investment Co.

2.1

(10.8)

KPRS

Pars Tile Co.

21.7

(10.1)

PLAK

Polyacryl Iran Corp.

2.0

(10.1)

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

APPE

Asan Pardakht Persian Co.

67.9

23.4

SIPA

SAIPA Group

3.6

16.5

IKCO

Iran Khodro

7.5

8.6

PLAK

Polyacryl Iran Corp.

2.0

6.9

PNES

Esfahan Oil Refining Co.

7.9

6.0

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

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