Weekly Market Report

Trading Week : 8 - 12 July 2017

Summary

Main Topics

- Tehran Stock Exchange ticks up 1% as companies issue annual reports

- Iran Fara Bourse overall index and trading volume both make gains

- Iran’s unemployment rate rises to 12.6%

 

Tehran Stock Exchange

The Tehran Stock Exchange All-Share Index closed up 1.0% at 79,509 for its first weekly gain since late May. The main TSE index was boosted by advances in large-cap stocks, including Golgohar Mining & Industrial Co. (GOLG +4.9%), Khouzestan Steel Co. (FKHZ +13.2%) and Mobile Telecommunication Co. of Iran (HRMZ +4.6%). The top performing sector of the week was Sugar (+6.9%), singled out by speculative traders. Paper Products (-3.4%), a favorite for speculators in previous weeks, became the biggest faller in the trad­ing week ending July 12.

 

The TSE30 index of the thirty largest companies by market capitalization rose 1.7% over the week, closing at 3,099. Promising financial reports issued by metal, mining and oil product companies lifted several constituents of the top 30s. The TSE30 index has reached its highest level for a month, with gains also reflected in the Turquoise TSE30 Index ETF (CFIF +1.5%).

 

This week the Average Daily Trade Volume (ADTV) increased 45% to USD 61 million. Despite higher demand for stocks, market appetite is still weighted towards debt securi­ties. Companies most traded by value were Asan Pardakht Persian Co. (APPE +6.0%), Esfahan Mobarakeh Steel Co. (FOLD +4.5%) and Parsian Electronic Commerce Co. (EPRS +6.4%) with USD 7.9 million, USD 5.3 million and USD 4.4 million respectively.

 

Iran Fara Bourse

Gains were also seen on the Iran Fara Bourse with its overall index advancing 1.1% to end the week at 909. Similarly the ADTV on the IFB increased 29% to USD 48 million, while debt securities remained the most traded, with total volume of USD 142 million.

 

Foreign Exchange Market

The Central Bank of Iran increased the official rate of the US dollar by 0.2% to IRR 32,609 but on the free market the dollar fell 0.3% to IRR 37,796. The official rate of the euro was quoted 1% higher by the CBI at IRR 37,291 while on the free market it dropped 1.7% to IRR 42,874. The British pound’s official rate was set 0.2% lower at IRR 42,055 while ster­ling slipped 0.1% on the free market to IRR 48,750.

 

Economic Developments

Unemployment in the three months to June 21 edged up to 12.6% from 12.5% in the pre­vious quarter, according to Statistical Centre of Iran (SCI) data for the active population over 10 years old. Its report for the first quarter of the current Iranian calendar year showed the jobless rate for those aged 15 to 29 years rose to 26.4% from 25.5%. Over the past five years the unemployment rate has ranged from a low of 9.5% in the quarter ending March 20, 2015, to a high of 12.8% in the three months to June 20, 2012.

 

According to SCI data, the active population over 10 years totals 26.6 million while the employment to population ratio has risen to 40.6% from 38.9% in the previous quarter. A sectoral breakdown shows that services account for the largest share of jobs with 11.5 million workers, while agriculture is the smallest sector with 4.3 million.

FX Information

Description

13 July 2017

6 July 2017

% Change

Official USD - IRR

32,609

32,560

0.2

Market USD - IRR

37,796

37,907

(0.3)

Official EUR - IRR

37,291

36,923

1.0

Market EUR - IRR

42,874

43,600

(1.7)

Official GBP - IRR

42,055

42,138

(0.2)

Market GBP - IRR

48,750

48,800

(0.1)

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2017

TSE Overall Index—TEDPIX

79,509

809

1.0

3.6

TSE30 Index

3,099

53

1.7

0.7

Iran Fara Bourse Overall Index

909

9

1.1

3.9

Description

This Period

Last Period

Market P/E

6.9

6.9

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

61

42

45

IFB Average Daily Traded Val­ue (Million USD) **

48

37

29

Industry Index Information

Description

Close

% Change

Sugar

9,020

6.9

Base Metals

34,521

3.7

Ceramics & Tiles

2,162

3.0

Telecommunication

967

2.9

IT

13,110

2.8

Oil Products

215,134

2.7

Metallic Ore

13,007

2.7

Foods excluding Sugar

3,875

2.4

Cement

716

2.4

Non-Metallic Ores

2,395

2.4

Agriculture

7,126

2.3

Textile

1,443

2.2

Engineering Services

708

2.1

Leather Production & Products

1,774

2.0

Automotive

18,372

1.2

Rubber & Plastics

23,452

1.1

TSE All-Share Index

79,510

1.0

Banking

570

0.9

Insurance

5,093

0.8

Utility Service Providers

195

0.3

Investment

1,874

0.1

Oil Drilling & Services

604

0.1

Medical & Measurement Products

10,244

0.0

Metallic Products

30,406

(0.3)

Industrial Conglomerates

7,351

(0.4)

Transportation & Logistics

3,609

(0.5)

Printing & Publishing

181,650

(0.6)

Chemicals

4,696

(1.0)

Machinery & Equipment

16,239

(1.2)

Pharmaceuticals

9,375

(1.3)

Construction

755

(1.7)

Coal Mining

1,157

(2.7)

Wooden Products

58,681

(2.7)

Other Financial Services

2,403

(2.9)

Machinery & Electric Equipment

541,752

(2.9)

Paper Products

13,688

(3.4)

Mining

15,649

(4.9)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

GSHI

Khorasan Shirin Sugar Co.

58.8

20.0

NASI

Iran Refractories Co.

9.4

14.0

FRIS

Iran Ferrosilicon Co.

7.3

12.3

MSTI

Motorsazan Iran Tractor Mfg. Co.

9.9

11.6

BMPS

Pars International Mfg. Co.

5.8

9.7

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

APPE

Asan Pardakht Persian

71.4

7.9

FOLD

Esfahan Mobarakeh Steel Co. 

4.0

5.3

EPRS

Parsian Electronic Commerce Co.

9.6

4.4

MSMI

National Copper Industries Co.

5.0

3.9

GHEG

Hegmatan Sugar Co.

13.4

3.3

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

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