Weekly Market Report

Trading Week Ended: 25 – 29 March 2017

Summary

Main Topics

- TSE All-Share Index starts first week of the new year up 1.1% at 77,584

- IFB overall index gains 1.4% to 887

- Iran YoY inflation reaches 11.9%, highest since August 2015

 

Tehran Stock Exchange

The Tehran Stock Exchange All-Share Index made a positive start to the Iranian New Year, closing up 1.1% for the first trading week at 77,584. Sugar (+7.3%) was the top per­forming major sector with broad gains across the index, while Oil Products (-0.4%) was the biggest faller, dragged down by Tabriz Oil Refining Co. (PNTB -7.2%).

 

The TSE30 index of the thirty largest companies by market capitalization closed at 3,099 for a gain of 0.7% over the week. Iran Khodro (IKCO +7.4%) was the biggest gainer while National Iranian Copper Industries Co. (MSMI -2.1%) fell the most.

 

The first trading week of the Iranian year saw a 79% drop in the Average Daily Trade Vol­ume (ADTV) to USD 27 million. The first two weeks of the Iranian calendar year are con­sidered as the New Year holiday season and this affected turnover on the TSE. Stocks posting the highest trading volume were led by MAPNA Group (MAPN +2.0%), Asan Pardakht Persian Co. (APPE +8.8%) and SAIPA Group (SIPA -1.0%), with USD 7.2 mil­lion, USD 5.1 million and USD 5.0 million in trades respectively.

 

Iran Fara Bourse

The Iran Fara Bourse overall index closed up 1.4% at 887. The ADTV on the bourse fell 54% to USD 42 million. Debt securities made up the bulk of trades with a total of USD 162 million, down 47% from the last trading week of the previous year.

 

Foreign Exchange Market

On the currency market, the Central Bank of Iran quoted the official US dollar rate un­changed at IRR 32,422. On the free market the dollar slipped 0.3% to IRR 37,297. The official euro rate rose 0.3% to IRR 34,859 while its free market rate gained 2.3% to IRR 41,262. The CBI pushed up the British pound’s official rate by 1.4% to IRR 40,347 but on the free market it dropped 2.6% to IRR 46,871.

 

Economic Developments

The Central Bank of Iran has released Consumer Price Index data showing that month-on-month inflation surged by 2.0% for the last month of the Iranian calendar year ending March 20, mostly driven by higher prices of Food & Beverage (+4.9%) and Leisure & Cul­tural Affairs (+3.9%). Tobacco was the only category showing no price gains over the month. The 12th month posted the highest inflation rate for the whole Iranian calendar year at twice the CBI’s monthly target. Year-on-year inflation rose to 11.9% from 10.6% in February. This is the highest CPI growth since August 2015 when inflation touched 12.5%. Last year the two categories posting the highest rate of inflation were Food & Beverage (+17.8%) and Health Care (+16.9%), while costs of Clothing & Shoes (+6.1%) and Tele­communication (+6.5%) grew the least.

 

Food and beverage prices in Iran have risen almost in line with the FAO Food Price Index which has increased by 17.2% in the year to February 2017. The main drivers of growth in the FAO Food Price Index – a measure of international prices for a basket of food com­modities - have been increased over 12 months of 51% for sugar, 37% for dairy products and 19% for vegetable oil products. In Iran the prices of these products are regulated by the government and it would seem that they have not yet been affected by rising global prices. The latest CBI update for food retail prices, for the week ending March 10, has shown the highest yearly increase has been posted by fresh fruits (+36.1%), eggs (+33.7%), rice (+31.5%) and fresh vegetables (+31.2%). The price of vegetable oil has risen by only 8.4%, less than half the global increase. In Iran both dairy and vegetable oil products are dependent on imported ingredients which make up a significant proportion of total imports. As for sugar, almost half of local demand is supplied by imported sugar with local production closely linked to annual rainfall levels.

FX Information

Description

30 March 2017

16 March 2017

% Change

Official USD - IRR

32,422

32,422

0.0

Market USD - IRR

37,297

37,425

(0.3)

Official EUR - IRR

34,859

34,766

0.3

Market EUR - IRR

41,262

40,354

2.3

Official GBP - IRR

40,347

39,775

1.4

Market GBP - IRR

46,871

48,100

(2.6)

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2016

TSE Overall Index—TEDPIX

77,584

846

1.1

(3.3)

TSE30 Index

3,099

22

0.7

(8.3)

Iran Fara Bourse Overall Index

887

16

1.9

10.2

Description

This Period

Last Period

Market P/E

7.3

7.2

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

27

132

(79)

IFB Average Daily Traded Val­ue (Million USD) **

42

93

(54)

Industry Index Information

Description

Close

% Change

Agriculture

7,759

10.7

Printing & Publishing

150,551

10.1

Wooden Products

65,838

8.1

Sugar

5,719

7.3

Construction

770

6.3

Rubber & Plastics

20,048

5.9

Paper Products

8,292

5.5

Machinery & Equipment

15,648

5.3

Ceramics & Tiles

2,089

5.2

Non-Metallic Ores

2,265

4.7

Other Financial Services

2,389

4.7

Machinery & Electric Equipment

507,328

3.6

Engineering Services

738

3.5

IT

9,107

3.2

Automotive

17,391

3.1

Telecommunication

907

2.5

Utility Service Providers

193

2.3

Investment

1,822

2.3

Cement

715

1.4

Base Metals

33,806

1.2

TSE All-Share Index

77,584

1.1

Metallic Products

31,921

0.8

Metallic Ore

13,806

0.6

Textile

1,387

0.5

Industrial Conglomerates

7,208

0.5

Transportation & Logistics

3,830

0.2

Pharmaceuticals

9,179

0.1

Leather Production & Products

1,712

0.1

Banking

585

0.1

Chemicals

4,715

0.04

Coal Mining

1,265

0.0

Medical & Measurement Products

10,244

0.0

Mining

16,981

0.0

Insurance

5,172

(0.1)

Foods excluding Sugar

3,563

(0.2)

Oil Drilling & Services

647

(0.2)

Oil Products

201,382

(0.4)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

JOSH

Jooshkab Yazd Industries Co.

36.4

25.1

LIRZ

Iranian Leasing Co.

5.1

22.6

PLAK

Polyacryl Iran Public Corp.

1.6

22.5

MELT

Mellat Investment Co.

2.2

21.8

KLBR

Kalber Dairy Co.

6.2

20.1

TSE Top 5 Losers

Company

Close **

(USD Cents)

% Change

MSTI

Motorsazan Tractor Mfg. Co.

7.5

(9.7)

BPST

Post Bank Iran

4.0

(9.0)

DRKH

Derakhshan Tehran Mfg. Co. 

12.4

(8.1)

PNTB

Tabriz Oil Refining Co.

11.2

(7.2)

TSBE

Behshahr Ind. Dev. Corp.

4.8

(7.2)

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

MAPN

MAPNA Group

20.8

7.2

APPE

Asan Pardakht Persian Co.

51.1

5.1

SIPA

SAIPA Group

3.1

5.0

PLAK

Polyacryl Iran Public Corp.

1.6

2.6

KLBR

Kalber Dairy Co.

6.2

1.5

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

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