Weekly Market Report

Trading Week Ended: 28 Jan - 1 Feb, 2017

Summary

Main Topics

- TSE All-Share Index closed down for the third week, although banking sector recovered slightly

- Iran Fara Bourse ended the week down but volumes went up

- Iran’s economy grew 7.4% in first half of the Iranian year, driven by oil sector

 

Tehran Stock Exchange

The TSE All-Share Index lost ground for the third consecutive week, closing down 0.8% at 76,792. Banking (+2.5%) and Machinery & Electric Equipment (+2.0%) were the top gain­ers among the few sectors to finish the week in positive territory with most sectors heading south. Banking was boosted by partial recoveries by Tejarat Bank (BTEJ +11.4%) and Mellat Bank (BMLT +5.0%). Iran Transfo Corp. (TRNS +3.1%) was the main driver of Ma­chinery & Electric Equipment. The weakest major sector of the week was Other Financial Services (-4.2%), mainly due to falls in Rayan SAIPA Leasing Co. (RSAP -5.3%) and In­dustry & Mine Leasing Co. (LSMD -4.6%).

 

The TSE30 index of the thirty largest companies by market capitalization slipped 0.5% to close at 3,101. The two iron ore manufacturing companies, Chadormalu Mining & Industri­al Co. (CHML -3.9%) and Golgohar Mining & Industrial Co. (GOLG -3.5%), were the big­gest losers in the top 30s, while the top gainer was Tejarat Bank.

 

The Average Daily Trade Volume (ADTV) ticked up 2% to USD 51 million this week. The stocks with the highest trading volume over the week were Barkat Pharmed Co. (BRKT +5.0%), SAIPA Group (SIPA +3.2%) and Tejarat Bank with USD 31.5 million, USD 10.5 million and USD 7.1 million of trades respectively.

 

Iran Fara Bourse

On the Iran Fara Bourse (IFB) market, the overall index closed at 834.9, down 1.7% from last week. The IFB’s ADTV rose 31% to USD 55 million, mostly due to increased trading of debt securities which remain the most popular instrument on the IFB, recording total traded value for the week of USD 186 million.

 

Foreign Exchange Market

On the FX market, the official rate of the US dollar increased slightly against the rial as the Central Bank of Iran quoted the greenback up 0.04% at IRR 32,376. On the free market the dollar was more volatile and ended the week 0.36% stronger at IRR 38,178. The CBI reduced the official rate of the euro by 0.92% to IRR 34,600, but its free market rate rose 0.38% to IRR 41,290. The official rate of the British pound fell 1.16% to IRR 40,510, but remained steady on the free market at IRR 48,500.

 

Economic Developments

The Central Bank of Iran has released some economic statistics for the first half of the current Iranian calendar year which ends March 20, 2017. According to the CBI, the econ­omy grew 7.4% in the six months since the start of the year, driven by the oil sector which soared 61.3%. Among other sectors agriculture increased by 4.8%, but the industries and mines sector fell -0.9%. Within industries and mines, the steepest fall was in construction which plunged 13% while mining fell 7.3%. Utilities rose 4.6% to post the highest growth in the sector, while industry increased by 3.5%. The CBI data showed that all sectors showed improvements in the second quarter compared with the first three months. The non-oil economy fell 0.9% in the first quarter ended June 20, 2016, but grew 0.9% over the six-month period.

FX Information

Description

9 February 2017

1 February 2017

% Change

Official USD - IRR

32,376

32,363

0.04

Market USD - IRR

38,178

38,041

0.36

Official EUR - IRR

34,600

34,920

(0.92)

Market EUR - IRR

41,290

41,135

0.38

Official GBP - IRR

40,510

40,985

(1.16)

Market GBP - IRR

48,500

48,500

0.00

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2016

TSE Overall Index—TEDPIX

76,792

(622)

(0.8)

(4.3)

TSE30 Index

3,101

(15)

(0.5)

(8.3)

Iran Fara Bourse Overall Index

834

(40)

(4.0)

3.6

Description

This Period

Last Period

Market P/E

7.3

7.3

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

51

50

2

IFB Average Daily Traded Val­ue (Million USD) **

55

42

31

Industry Index Information

Description

Close

% Change

Mining

14,353

20.8

Leather Production & Products

1,698

11.3

Wooden Products

66,679

6.0

Banking

609

2.5

Machinery & Electric Equipment

451,830

2.0

Ceramics & Tiles

2,037

0.8

Construction

713

0.3

Coal Mining

1,265

0.0

Medical & Measurement Products

10,244

0.0

Paper Products

8,097

(0.03)

Oil Drilling & Services

637

(0.05)

Engineering Services

843

(0.05)

Telecommunication

847

(0.2)

Insurance

4,877

(0.2)

IT

8,731

(0.6)

Industrial Conglomerates

7,065

(0.7)

Pharmaceuticals

9,114

(0.7)

Investment

1,735

(0.7)

Oil Products

189,303

(0.8)

TSE All-Share Index

76,793

(0.8)

Metallic Products

38,896

(1.0)

Chemicals

4,707

(1.0)

Rubber & Plastics

19,172

(1.1)

Foods excluding Sugar

3,645

(1.2)

Cement

707

(1.3)

Transportation & Logistics

3,833

(1.3)

Automotive

18,053

(1.3)

Non-Metallic Ores

2,158

(1.4)

Sugar

5,587

(1.8)

Utility Service Providers

178

(1.9)

Base Metals

34,056

(2.3)

Textile

1,429

(2.9)

Metallic Ore

13,465

(3.2)

Machinery & Equipment

15,634

(3.3)

Printing & Publishing

118,397

(4.1)

Other Financial Services

2,038

(4.2)

Agriculture

6,843

(6.6)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

TAMI

Silica Sand Mfg. Co.

10.6

20.8

DRKH

Derakhshan Tehran Mfg. Co.

12.5

15.7

BTEJ

Tejarat Bank

1.9

11.4

GMEL

Melli Industrial Group

30.1

11.3

LMIR

Iran Pipe & Machine Mfg. Co.

12.5

9.4

TSE Top 5 Losers

Company

Close **

(USD Cents)

% Change

NSPS

Pars Refractories Co.

13.2

(12.4)

KAVR

Iran Khodro Diesel

2.9

(10.3)

PFRB

Farabi Petrochemical Co.

10.0

(10.1)

KRIR

Iran Carburetter

3.1

(9.8)

KDPS

Pars Animal Feed Co.

21.2

(9.5)

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

BRKT

Barkat Pharmed Co.

5.9

31.5

SIPA

SAIPA Group

3.2

10.5

BTEJ

Tejarat Bank

1.9

7.1

IKCO

Iran Khodro

7.4

5.7

AZAB

Azarab Industries Co.

8.8

4.2

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

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