Weekly Market Report

Trading Week: 2 - 6 September 2017

Summary

Main Topics

- Tehran Stock Exchange gains 0.5% but growth rate slows

- Iran Fara Bourse slips 0.5% on lower volumes

- Non-oil trade deficit narrows to USD 2.2 billion

 

Tehran Stock Exchange

Tehran stocks extended their positive run this week but at a slower pace, with the TSE All-Share Index edging up 0.5% to close at 83,675. Investors were more cautious on metal and mining companies following several weeks of gains for such commodity stocks. A slight adjustment in share prices is expected before further possible rises on the back of higher global prices. Paper Products (+6.3%) was the top performing sector, mainly be­cause of speculative demand for Iran Carton Co. (KRTI +11.4%). More than 10% of its shares were traded on the TSE over the week, almost twice its average weekly volume for the last three months. Oil Products (+3.8%) was the second top performing major sector, signaling its potential to become the market leader rather than metal and mining compa­nies. The weakest sector was Automotive (-7.2%), following the resumption of market trading in SAIPA Group (SIPA -18.6%) after three months. SAIPA’s ticker had been off the trading board since June due to revisions requested by the regulator to the company’s financial statements for its subsidiary companies. The regulator had discovered losses which had not been accurately reported in some of its subsidiaries. As a result SAIPA had to change a net profit of USD 79 million to a net loss of USD 87 million in its consolidated reports for the financial year ending March 2017.

 

The TSE30 index of the thirty largest companies by market capitalization added 0.6% for the week to close at 3,419. Esfahan Oil Refining Co. (PNES +7.7%) led gainers in the top 30s, while SAIPA Group (SIPA -18.6%) was the biggest faller.

 

This week the Average Daily Trade Volume (ADTV) slipped 26% to USD 50 million. Stocks with the highest daily traded value were SAIPA Group (SIPA -18.6%), Iran Alumi­num Co. (ALIR +3.4%) and Esfahan Oil Refining Co. (PNES +8.0%).

 

Iran Fara Bourse

The Iran Fara Bourse overall index dropped 0.5% to close at 948, while its ADTV fell 31% to USD 40 million. Debt securities were the most traded instrument by value this week with a total volume of USD 92 million.

 

Foreign Exchange Market

The Iranian rial continued to fall against major currencies. The Central Bank of Iran in­creased the official rate of the US dollar by 0.4% to IRR 33,330 while on the free market it gained 0.7% to IRR 38,899. The official rate of the euro was announced 0.8% higher at IRR 39,748 and its free market rate rose by the same rate to IRR 46,809. The British pound’s official rate was increased by 1.4% to IRR 43,492 and its free market rate ended the week 1.8% stronger at IRR 50,500.

 

Economic Developments

Iran’s non-oil trade deficit in the five months to August 22 slipped to USD 2.2 billion from USD 2.4 billion the previous month, according to Customs Administration statistics. Trade over the five months totaled USD 36.6 billion, up 5.3% compared with the same year-ago period, with imports increasing 16.5% to USD 19.4 billion and exports falling 5% to USD 17.2 billion. The average price per tonne of imported products gained 8.8% to USD 1,367. Purchases of cars and auto parts mainly accounted for the increase in imports. The aver­age price per tonne of Iran’s non-oil exports fell 3.4% to USD 358. Preliminary customs figures showed little significant change in Iran’s trading partners, except for a 14.5% fall in exports to the UAE to USD 2.6 billion.

FX Information

Description

7 September 2017

31 August 2017

% Change

Official USD - IRR

33,330

33,208

0.4

Market USD - IRR

38,899

38,623

0.7

Official EUR - IRR

39,748

39,440

0.8

Market EUR - IRR

46,809

46,442

0.8

Official GBP - IRR

43,492

42,877

1.4

Market GBP - IRR

50,500

49,600

1.8

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2017

TSE Overall Index - TEDPIX

83,675

402

0.5

9.0

TSE30 Index

3,419

19

0.6

11.1

Iran Fara Bourse Overall Index

948

(5)

(0.5)

8.3

Description

This Period

Last Period

Market P/E

6.8

6.8

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

50

68

(26)

IFB Average Daily Traded Val­ue (Million USD) **

40

58

(31)

Industry Index Information

Description

Close

% Change

Paper Products

12,599

6.3

Leather Production & Products

1,939

3.9

Oil Products

244,585

3.8

Utility Service Providers

204

3.7

Chemicals

4,913

2.4

Base Metals

45,291

0.9

Banking

569

0.7

Engineering Services

659

0.7

TSE All-Share Index

83,675

0.5

Telecommunication

947

0.5

Industrial Conglomerates

7,618

0.2

Medical & Measurement Products

10,244

0.0

IT

12,451

(0.2)

Pharmaceuticals

9,144

(0.3)

Agriculture

7,011

(0.3)

Metallic Ore

16,351

(0.5)

Investment

1,906

(0.6)

Metallic Products

30,755

(0.7)

Insurance

4,984

(0.7)

Construction

721

(0.7)

Machinery & Equipment

16,064

(0.9)

Textile

1,312

(1.3)

Machinery & Electric Equipment

493,979

(1.3)

Transportation & Logistics

4,008

(1.4)

Foods excluding Sugar

3,688

(1.5)

Non-Metallic Ores

2,350

(1.6)

Oil Drilling & Services

496

(1.6)

Other Financial Services

2,226

(1.7)

Cement

683

(1.7)

Rubber & Plastics

21,800

(2.1)

Ceramics & Tiles

2,337

(2.1)

Wooden Products

56,319

(2.3)

Sugar

8,668

(2.8)

Mining

13,066

(3.6)

Printing & Publishing

195,030

(3.7)

Automotive

16,830

(7.3)

Coal Mining

1,311

(9.6)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

JOSH

Jooshkab Yazd Industries Co.

44.3

17.8

KRTI

Iran Carton Co.

13.9

11.4

INDM

Indamin SAIPA Mfg. Co.

2.6

9.0

PNES

Esfahan Oil Refining Co.

8.0

7.7

GHEG

Hegmatan Cement Co.

6.6

6.5

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

SIPA

SAIPA Group

2.9

14.2

ALIR

Iran Aluminum Co. 

3.4

5.9

PNES

Esfahan Oil Refining Co.

8.0

5.1

MSMI

National Iranian Copper Ind. Co.

5.9

4.7

IPTR

Iranian Inv. Petrochemical Group 

3.6

3.2

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

Turquoise Partners - Firouzeh Asia Brokerage

All Rights Reserved - 2017

Follow us on