Weekly Market Report

Trading Week Ended: 25 Feb -1 Mar 2017

Summary

Main Topics

- TSE All-Share Index drops after two weeks of gains, closing at 77,475

- Iran Fara Bourse Overall Index ends 0.4% higher at 870

- Iran’s non-oil trade surplus falls to $77m from $288m

 

Tehran Stock Exchange

The Tehran Stock Exchange All-Share Index lost 0.48% in the last week of February, clos­ing at 77,475 following two weeks of slight gains. Other Financial Services remained the market leader, gaining 4.45% over the week with Rayan SAIPA Leasing Co. (RSAP +6.1%) and Iranian Leasing Co. (LIRZ +12.1%) the main drivers. In contrast the weakest sector of the week was Transportation & Logistics (-2.18%) due to broad declines across the sector.

 

The TSE30 index of the thirty largest companies by market capitalization closed at 3,121, down 0.22% from last week. The top performing share in the top 30s was Civil Pension Fund Investment Co. (SAND +5.09%) while Metals & Mines Development Investment Co. (MADN -2.97%) recorded the biggest fall.

 

This week the Average Daily Trade Volume (ADTV) declined by 18% to USD 50 million. The shares with the highest weekly traded value were Azarab Industries Co. (AZAB -8.3%), SAIPA Group (SIPA -1.3%) and Tejarat Bank (BTEJ +0.7%) with USD 12.1 million, USD 9.0 million and USD 3.8 million of trades respectively.

 

Iran Fara Bourse

On the Iran Fara Bourse, the overall index gained 0.4% to close at 870. The IFB’s ADTV surged 83% to USD 64 million. Market demand for debt securities was the main driver behind ADTV growth. Total debt securities traded rose 96% to USD 188 million.

 

Foreign Exchange Market

On the currency market, the Central Bank of Iran added 0.02% to the official rate of the US dollar, quoting it at IRR 32,407. On the free market, the US dollar dropped 0.15% from last week to IRR 37,764. The official euro rate slipped 0.04% to IRR 34,213 while the EU­RIRR free market rate fell 0.63% to IRR 40,142. The CBI reduced the official rate of the British pound by 0.58% to IRR 40,099, while sterling’s free market rate edged up 0.1% to IRR 48,100.

 

Economic Developments

The Islamic Republic of Iran Customs Administration reported non-oil trade figures for the first 11 months of the current Iranian calendar year, up to February 18. According to IRI­CA, the non-oil trade surplus fell to USD 77 million from USD 288 million a month earlier and was down from USD 1.2 billion in the same year-ago period. Exports over the 11-month period increased by 0.21% to USD 38.4 billion. Petrochemical products were the main export category, falling 14.8% to USD 11.8 billion over the 11 months and account­ing for almost 30% of total non-oil exports. Although petrochemical exports fell in value, volumes gained 8%. Gas condensates, the second largest export item, earned USD 6.5 billion, up 55% from last year on volumes that rose 78%. Iran’s third main export, natural gas, edged down 0.03% to USD 1.9 billion although volumes gained 33% compared with the same year-ago period. China, the UAE, Iraq and Turkey were the top four destinations for Iran’s exports with USD 7.2 billion, USD 6.1 billion, USD 5.5 billion and USD 2.9 billion respectively. Imports gained 3.4% to USD 38.4 billion in the first 11 months compared to the same period last year. Main imports were led by corn feedstock (USD 1.3 billion), soy­bean (USD 840 million), spare parts for automobiles with 2000 cc engines (USD 730 mil­lion) and motor vehicle with 1,500 cc to 2,000 cc engines (USD 700 million). China, the UAE, South Korea and Turkey were the main exporters to Iran with sales of USD 9.3 bil­lion, USD 5.7 billion, USD 3.0 billion and USD 2.3 billion respectively. Iran’s non-oil trade with the UAE and Turkey declined over the 11 months. Exports to the UAE fell 7.5% in value although volumes gained 21%. Imports from the UAE were down 15% with volumes falling 20%. Similarly with Turkey where Iran imported 15% less in value and 39% less in volume. Exports to Turkey also dropped 8% in value and 38% in volume.

 

The Central Bank of Iran released the latest Tehran housing market report for the 11th month of the Iranian calendar year. Sales totaled 15,631, down 6.7% from the previous month and representing a drop of 4.5% from the same month last year. According to the CBI, the cost of one square meter of residential space averaged IRR 45.0 million (approx. USD 1,190), showing 0.2% growth from one month earlier and 7.6% more than a year earlier. The CBI reported that total home sales in Tehran over the 11 months reached 149,807 units, up 6.5% from the same period last year but still down 4.6% from two years ago. The average price per square meter of residential space over the 11 months was IRR 43.7 million (approx. USD 1,157), up 5.4% from last year and 4.8% more than two years ago. A review of the CBI report suggests the most popular residential units measured 60 to 100 square meters costing IRR 30-45 million (approx. USD 794–1,191) per square me­ter.

FX Information

Description

1 March 2017

16 February 2017

% Change

Official USD - IRR

32,407

32,390

0.02

Market USD - IRR

37,764

38,108

(0.15)

Official EUR - IRR

34,213

34,382

(0.04)

Market EUR - IRR

40,142

40,912

(0.63)

Official GBP - IRR

40,099

40,364

(0.58)

Market GBP - IRR

48,100

48,100

0.10

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2016

TSE Overall Index—TEDPIX

77,475

(372)

(0.5)

(3.4)

TSE30 Index

3,121

(16)

(0.5)

(7.7)

Iran Fara Bourse Overall Index

870

3

0.4

8.0

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) **

50

61

(18)

IFB Average Daily Traded Val­ue (Million USD) **

64

35

83

Industry Index Information

Description

Close

% Change

Mining

17,748

4.6

Other Financial Services

2,281

4.5

Oil Drilling & Services

658

2.3

Industrial Conglomerates

7,248

1.9

Investment

1,794

1.9

Printing & Publishing

128,578

1.9

Pharmaceuticals

9,060

0.9

Paper Products

8,438

0.7

Insurance

4,958

0.7

Textile

1,382

0.3

Machinery & Equipment

15,789

0.2

Oil Products

197,912

0.1

Leather Production & Products

1,699

0.05

Cement

716

0.01

Coal Mining

1,265

0.0

Medical & Measurement Products

10,244

0.0

Wooden Products

67,130

0.0

Engineering Services

843

(0.0)

Rubber & Plastics

19,285

(0.2)

Telecommunication

869

(0.3)

Machinery & Electric Equipment

507,161

(0.3)

TSE All-Share Index

77,475

(0.5)

Metallic Products

38,681

(0.5)

Ceramics & Tiles

2,025

(0.5)

Foods excluding Sugar

3,629

(0.6)

Sugar

5,492

(0.8)

Base Metals

34,643

(0.9)

Metallic Ore

13,641

(0.9)

Non-Metallic Ores

2,199

(1.0)

Chemicals

4,723

(1.0)

Automotive

17,565

(1.1)

Banking

592

(1.2)

Construction

741

(1.4)

Utility Service Providers

183

(1.5)

IT

8,693

(1.8)

Transportation & Logistics

3,751

(2.2)

Agriculture

7,390

(6.6)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

LMIR

Luleh va Mashinsazi Iran Co.

18.5

30.9

KHOC

Khuzestan Cement Co.

8.5

19.3

SKAZ

Khazar Cement Co.

13.8

17.1

BOTA

Butane Industrial Group

10.2

14.4

KNRZ

Sabanour Mining and Ind. Co.

7.1

14.2

TSE Top 5 Losers

Company

Close **

(USD Cents)

% Change

BPST

Post Bank Iran

4.6

(20.6)

SPKH

Khorasan Pegah Dairy Co.

9.5

(13.7)

GSKE

Agricultural Ind. Services  Dev.

12.1

(13.2)

DADE

Data Proccessing Iran  Co.

7.0

(13.2)

SWIC

Pars Switch

26.8

(12.3)

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

AZAB

Azarab Industries Co.

8.4

12.1

SIPA

SAIPA Group

3.2

9.0

BTEJ

Tejarat Bank

2.0

3.8

LMIR

Luleh va Mashinsazi Iran Co.

18.5

3.7

RSAP

Rayan SAIPA Leasing Co.

4.1

2.3

** 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