Weekly Market Report

Trading Week: 26 - 30 August 2017

Summary

Main Topics

- Tehran Stock Exchange index extends gains on back of commodity stocks

- Demand for debt securities lifts Iran Fara Bourse

- Iran’s year-on-year inflation drops to 8.6% from 9.9%

 

Tehran Stock Exchange

The Tehran Stock Exchange All-Share Index maintained its upward trend for another week, adding 0.9% to close at 83,272. The top performing major sector was again Metallic Ore (+5.6%), extending its gains for August to 14%. The biggest faller was Engineering Services (-5.5%), pulled lower by MAPNA Group (MAPN -5.5%).

 

The TSE30 index of the thirty largest companies by market capitalization recorded a 2% weekly gain, closing at 3,400.  The top 30s index was mainly boosted by Kharg Petro­chemical Co. (PKHA +12.6%), National Iranian Copper Industries Co. (MSMI +8.7%) and Golgohar Mining & Industrial Co. (GOLG +8.7%). The steepest decline on the TSE30 in­dex was posted by MAPNA Group (MAPN -5.5%).

 

The Average Daily Trade Volume increased slightly to USD 68 million, up 9% from last week. The most traded stocks by value were National Iranian Copper Industries Co. (MSMI +8.7%), Esfahan Mobarakeh Steel Co. (FOLD +4.8%) and Metals & Mines Devel­opment Inv. Co. (MADN +6.7%), with volumes of USD 12.3 million, USD 11.4 million and USD 7.6 million respectively.

 

Iran Fara Bourse

The overall index of the Iran Fara Bourse ended higher for a second week, closing up 1.4% at 953. Its ADTV doubled to USD 58 million, mostly because of higher trades in debt securities which recorded a total volume of USD 172 million over the week.

 

Foreign Exchange Market

The Iranian rial fell further against major currencies. The Central Bank of Iran increased the official rate of the US dollar by 0.4% to IRR 33,208 while on the free market it gained 0.6% over the week to IRR 38,623. The official euro rate was quoted 1.1% higher at IRR 39,440, while its free market rate rose 2.9% to IRR 46,442. The British pound’s official rate was posted at IRR 42,877 for a 1.4% gain for the week while sterling rose 1.8% on the free market to IRR 49,600.

 

Economic Developments

Iran’s year-on-year inflation rate has fallen to 8.6% from 9.9%, according to data released by the Central Bank of Iran for the fifth month of the Iranian calendar year, ending August 22. Prices rose 0.2% on a month-by-month basis, with the consumer price index dropping for four straight months. Over the latest month, the Food & Beverage category posted the largest decline of 1.1%, which followed a 1.5% drop the previous month. The highest in­crease was seen in the Restaurant & Hotel category with 1.1% growth. On a yearly basis, Food & Beverage still tops the inflation table despite price increases falling from 13.6% to 11.7%. As in July, Tobacco’s year-on-year inflation rate of 0.4% remains the lowest among all categories.

 

In a separate development, the CBI reported that Tehran home sales rose 23% to 17,984 units in the fifth month of the Iranian year compared to the previous month. Sales are up 6.0% from a year ago. The average price of one square meter of residential space rose 1.0% over the month to USD 1,208 for a gain over 12 months of 6.2%. Total home sales in Tehran in the first five months of the Iranian calendar year increased by 1.5% over the same year-ago period to 68,616 units. The average price per square meter rose 5.5% to USD 1,117.

FX Information

Description

31 August 2017

24 August 2017

% Change

Official USD - IRR

33,208

33,075

0.4

Market USD - IRR

38,623

38,398

0.6

Official EUR - IRR

39,440

39,022

1.1

Market EUR - IRR

46,442

45,141

2.9

Official GBP - IRR

42,877

42,279

1.4

Market GBP - IRR

49,600

48,700

1.8

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2017

TSE Overall Index - TEDPIX

83,272

731

0.9

8.5

TSE30 Index

3,400

66

2.0

10.5

Iran Fara Bourse Overall Index

953

13

1.4

8.9

Description

This Period

Last Period

Market P/E

6.8

6.7

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

68

62

9

IFB Average Daily Traded Val­ue (Million USD) **

58

29

100

Industry Index Information

Description

Close

% Change

Metallic Ore

16,429

5.6

Leather Production & Products

1,866

4.3

Base Metals

44,899

4.2

Printing & Publishing

202,423

3.0

Chemicals

4,796

1.8

Mining

13,549

1.8

Metallic Products

30,964

0.9

TSE All-Share Index

83,273

0.9

Oil Products

235,675

0.9

Machinery & Equipment

16,213

0.6

Investment

1,917

0.6

Industrial Conglomerates

7,602

0.6

Rubber & Plastics

22,257

0.6

Automotive

18,150

0.5

Ceramics & Tiles

2,388

0.5

Sugar

8,918

0.3

Utility Service Providers

196

0.3

Machinery & Electric Equipment

500,495

0.2

Coal Mining

1,450

0.0

Medical & Measurement Products

10,244

0.0

Foods excluding Sugar

3,745

(0.1)

Pharmaceuticals

9,173

(0.3)

Telecommunication

943

(0.4)

Cement

695

(0.8)

Banking

565

(0.9)

Insurance

5,019

(1.1)

IT

12,478

(1.2)

Other Financial Services

2,264

(1.4)

Textile

1,329

(1.5)

Construction

726

(1.6)

Non-Metallic Ores

2,387

(2.6)

Transportation & Logistics

4,065

(2.6)

Wooden Products

57,642

(3.7)

Agriculture

7,035

(3.7)

Paper Products

11,857

(5.2)

Engineering Services

655

(5.5)

Oil Drilling & Services

504

(16.6)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

ALIR

Iran Aluminum Co. 

3.3

26.1

MSTI

Motorsazan Iran Tractor Mfg. Co.

23.1

15.1

GORJ

Gorji Biscuit Co.

11.8

13.4

MNGZ

Iran Manganese Mines Co.

8.1

11.3

GNJN

Naghsh Jahan Sugar Co.

23.4

11.1

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

MSMI

National Iranian Copper Ind. Co.

5.7

12.3

FOLD

Esfahan Mobarakeh Steel Co.

5.0

11.4

MADN

Metals & Mines Inv. Dev. Co.

3.9

7.6

GOLG

Golgohar Mining and Ind. Co.

7.1

7.1

APPE

Asan Pardakht Persian Co.

59.5

4.2

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

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