Weekly Market Report

Trading Week : 6 - 10 May 2017

Summary

Main Topics

- TSE All-Share Index edges up to close the week at 80,127

- IFB overall index loses 1.4% as market activity drops

- Non-oil trade surplus falls in first month of Iranian year

 

Tehran Stock Exchange

The TSE All-Share Index closed the week barely changed at 80,127 for a gain of 0.2%. The week’s top performing sector was Engineering Services (+4.2%), boosted by MAPNA Group (MAPNA +4.2%). Iran’s largest engineering company partially recovered from falls experienced in the previous week, its share price swinging without any specific company update. The weakest sector was Paper Products (-4.7%) which had been the top gainer the previous week. Kaveh Paper Industries Co. (KSKA -14.3%) dragged the index down as it lost some of the 130% gains it has made since February.

 

The TSE30 index of the thirty largest companies by market capitalization rose 0.6% to end at 3,123. SAIPA Group (SIPA +4.6%) led gainers, while Chadormalu Mining & Industrial Co. (CHML -3.4%) fell the most.

 

The Average Daily Trade Volume (ADTV) advanced 44% to USD 91 million over the week. Various block trades and higher trades in debt securities added to volumes. Most traded stocks were led by SAIPA Group (SIPA +4.6%), Navard Aluminum Mfg. Group (NALM +7.1%) and Pars Khodro (PKOD +5.1%), with volume of USD 26.8 million, USD 7.3 million and USD 6.4 million respectively.

 

Iran Fara Bourse

The overall index of the Iran Fara Bourse closed at 924, down 1.4% from the previous week. The market’s ADTV fell 40% to USD 39 million due to significantly lower trades of all kinds of IFB-listed securities. Debt securities were the most traded, with a total value of USD 95 million, down 44% from a week earlier.

 

Foreign Exchange Market

On the currency market the Central Bank of Iran left the US dollar official rate barely changed at IRR 32,451, up 0.02% from last week. The dollar fell 0.2% on the free market to IRR 37,526. The official euro rate fell 0.2% to IRR 35,287 but on the free market the euro gained 0.3% to IRR 41,048. The official rate of the British pound gained 0.5% to IRR 41,999 while sterling added 0.3% on the free market to IRR 48,450.

 

Economic Developments

Iran posted a non-oil trade surplus of USD 375 million in the first month of the Iranian cal­endar year (ending April 20), down from USD 1 billion in the same month last year, ac­cording to figures released by the Islamic Republic of Iran Customs Administration (IRICA). Exports totaled USD 2.7 billion, down USD 300 million from the same year-ago period, while imports gained USD 300 million to USD 2.3 billion. Measured by weight, Iran exported 8 million tonnes in the first month and imported 2 million tonnes.

 

The fall in value of exports was mainly due to lower prices for petrochemical products and a drop of 11% in the value of the Iranian rial against the US dollar. Prices of natural gas, the second largest export item, improved over the year however. The increase in imports follows shifting trends in purchased goods with the removal of sanctions allowing Iranians to import more cars and spare parts. According to IRICA, for the month ending April 20, 2017, Iran’s main export markets were China (USD 615 million), the UAE (USD 497 mil­lion) and Iraq (USD 388 million). Sources of imports were led by China (USD 485 million), the UAE (USD 402 million) and Turkey (USD 180 million).

FX Information

Description

11 May 2017

4 May 2017

% Change

Official USD - IRR

32,451

32,443

0.02

Market USD - IRR

37,526

37,590

(0.2)

Official EUR - IRR

35,287

35,346

(0.2)

Market EUR - IRR

41,048

40,918

0.3

Official GBP - IRR

41,999

41,772

0.5

Market GBP - IRR

48,450

48,300

0.3

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2016

TSE Overall Index—TEDPIX

80,127

157

0.2

4.4

TSE30 Index

3,123

19

0.6

1.5

Iran Fara Bourse Overall Index

924

(12)

(1.4)

5.6

Description

This Period

Last Period

Market P/E

7.0

7.0

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

91

63

44

IFB Average Daily Traded Val­ue (Million USD) **

39

65

(40)

Industry Index Information

Description

Close

% Change

Printing & Publishing

196,211

5.4

Engineering Services

756

4.2

Mining

19,233

3.2

Industrial Conglomerates

7,365

2.8

Sugar

7,952

2.6

Agriculture

7,669

2.6

Insurance

5,407

2.1

Automotive

19,244

1.9

Textile

1,429

1.5

Telecommunication

915

1.0

IT

11,951

0.9

Leather Production & Products

1,719

0.9

Utility Service Providers

191

0.8

Wooden Products

74,291

0.7

Foods excluding Sugar

3,894

0.3

TSE All-Share Index

80,127

0.2

Base Metals

33,088

0.2

Banking

581

0.1

Pharmaceuticals

9,484

0.1

Investment

1,982

0.04

Medical & Measurement Products

10,244

0.0

Chemicals

4,830

(0.2)

Transportation & Logistics

3,922

(0.4)

Metallic Ore

13,092

(0.5)

Other Financial Services

2,642

(0.9)

Coal Mining

1,494

(1.1)

Oil Products

224,367

(1.2)

Construction

792

(2.5)

Cement

727

(2.5)

Machinery & Electric Equipment

534,953

(2.7)

Rubber & Plastics

22,257

(3.7)

Machinery & Equipment

16,598

(3.7)

Metallic Products

31,659

(3.8)

Non-Metallic Ores

2,484

(3.9)

Oil Drilling & Services

677

(4.4)

Ceramics & Tiles

2,241

(4.4)

Paper Products

12,653

(4.7)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

HFRS

Persian Gulf Intl. Transportation

18.9

25.1

GSHI

Khorasan Sugar Co.

25.9

24.2

LAMI

Lamiran Co.

12.5

17.0

GSKE

Agricultural Ind. Services Dev.

17.9

14.4

ROZD

Rouz Darou Pharmaceutical Co.

6.3

14.2

TSE Top 5 Losers

Company

Close **

(USD Cents)

% Change

KSKA

Kaveh Paper Industries Co.

10.9

(14.3)

HTOK

Tuka Transportation Co

7.3

(13.8)

TKSM

Takceram Tile Manufacturing Co.

4.8

(11.8)

BHSM

Behceram Co.

5.7

(11.5)

FRVR

Iran Mineral Processing Co.

19.6

(11.0)

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

SIPA

SAIPA Group

3.5

26.8

NALM

Navard Aluminum Mfg. Group

3.9

7.3

PKOD

Pars Khodro

2.9

6.4

IKCO

Iran Khodro

7.5

5.3

TAMI

Silica Sand Mfg. Co.

14.5

4.8

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

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