Weekly Market Report

Trading Week : 15 - 19 July 2017

Summary

Main Topics

- Iran blue chips boost Tehran market for a second week

- Iran Fara Bourse gains 1.2% as recovery continues

 

Tehran Stock Exchange

Investors’ appetite for blue chips helped drive a second week of gains on the Tehran Stock Exchange with the All-Share Index ending 0.8% higher at 80,162. The top perform­ing sector of the week was Sugar (+6.5%), which has risen 21% over a month. Textiles (-4.6%) fell the most. Upbeat quarterly reports by companies in major industries have fo­cused market attention on blue chips which have become the main driver of the TSE. In­creased production and sales volumes, as well as higher prices, have transformed the outlook for companies involved in car manufacturing, oil products, chemicals, metals and mining. This has turned market sentiment more positive in recent weeks.

 

The TSE30 index of the thirty largest companies by market capitalization increased more than the broader market, closing up 1.8% at 3,155. Khouzestan Steel Co. (FKHZ +11.5%) led gainers among the top 30s following release of its quarterly report indicating its poten­tial for strong advances in the current year. The biggest faller of the TSE30 index was MAPNA Group (MAPN -1.58%) which came under selling pressure as it approached its AGM date. According to TSE regulations, the ticker of companies holding their AGM are removed from the trading board two days ahead of the session. Companies are also obli­gated to pay their dividends in an eight-month period after the AGM. Some investors pre­fer to avoid these procedures and sell in advance.

 

The Average Daily Trade volume (ADTV) slipped 6.5% this week to USD 57 million. Esfa­han Mobarakeh Steel Co. (FOLD +4.9%), Iran Khodro (IKCO +3.5%) and National Iranian Copper Industries Co. (MSMI -0.3%) were the stocks most traded by value, posting vol­umes of USD 5.9 million, USD 5.0 million and USD 4.3 million respectively.

 

Iran Fara Bourse

The overall index of the Iran Fara Bourse advanced 1.2% to close at 920 while its ADTV dropped to USD 33 million from USD 48 million. As in the previous week, debt securities recorded the highest traded value with USD 80 million in total.

 

Foreign Exchange Market

The Iranian rial declined against some major currencies this week. The Central Bank of Iran added 0.2% to the official rate of the US dollar, quoting it at IRR 32,659. On the free market, the dollar fell 0.3% over the week to IRR 37,684. The official rate of the euro was set 1.2% higher at IRR 37,732 while on the free market the euro gained 0.6% to IRR 43,139. The CBI also pushed up the official rate of the British pound by 1.2% to IRR 42,554, while its free market rate rose 0.3% to IRR 48,900.

 

FX Information

Description

19 July 2017

13 July 2017

% Change

Official USD - IRR

32,659

32,609

0.2

Market USD - IRR

37,684

37,796

(0.3)

Official EUR - IRR

37,732

37,291

1.2

Market EUR - IRR

43,139

42,874

0.6

Official GBP - IRR

42,554

42,055

1.2

Market GBP - IRR

48,900

48,750

0.3

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2017

TSE Overall Index - TEDPIX

80,162

652

0.8

4.5

TSE30 Index

3,155

56

1.8

2.5

Iran Fara Bourse Overall Index

920

11

1.2

5.1

Description

This Period

Last Period

Market P/E

7.0

6.9

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

57

61

(6.5)

IFB Average Daily Traded Val­ue (Million USD) **

33

48

(30)

Industry Index Information

Description

Close

% Change

Sugar

9,608

6.5

Ceramics & Tiles

2,257

4.4

Construction

784

3.9

Base Metals

35,714

3.5

Industrial Conglomerates

7,547

2.7

Investment

1,918

2.4

Agriculture

7,282

2.2

Mining

15,950

1.9

Other Financial Services

2,441

1.6

Chemicals

4,752

1.2

Banking

576

1.2

Non-Metallic Ores

2,422

1.1

Rubber & Plastics

23,687

1.0

Leather Production & Products

1,789

0.8

TSE All-Share Index

80,163

0.8

Automotive

18,488

0.6

Utility Service Providers

196

0.6

Metallic Products

30,552

0.5

Oil Products

215,497

0.2

Machinery & Equipment

16,249

0.1

Coal Mining

1,157

0.0

Medical & Measurement Products

10,244

0.0

Oil Drilling & Services

604

0.0

Metallic Ore

12,999

(0.1)

Insurance

5,089

(0.1)

Cement

715

(0.1)

Telecommunication

964

(0.3)

Foods excluding Sugar

3,863

(0.3)

Transportation & Logistics

3,597

(0.3)

IT

12,917

(1.5)

Pharmaceuticals

9,234

(1.5)

Paper Products

13,442

(1.8)

Engineering Services

693

(2.1)

Wooden Products

56,985

(2.9)

Machinery & Electric Equipment

524,788

(3.1)

Textile

1,376

(4.6)

Printing & Publishing

172,296

(5.1)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

PASH

Pakshoo Industrial Group

36.7

15.8

FRIS

Iran Ferrosilicon Co.

8.0

10.3

GMRO

Marvdasht Sugar Co.

13.3

9.5

NALM

Navard Aluminum Mfg. Group 

3.7

7.1

PRKT

Behpardakht Mellat Co.

48.8

5.0

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

FOLD

Esfahan Mobarakeh Steel Co.

4.2

5.9

IKCO

Iran Khodro

7.2

5.0

MSMI

National Iranian Copper Ind. Co.

5.0

4.3

LMIR

Luleh va Mashinsazi Iran

21.4

3.1

BANS

Ansar Bank

6.1

2.9

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

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