Weekly Market Report

Trading Week : 3 – 5 April 2017

Summary

Main Topics

- Tehran Stock Exchange All-Share Index ends week steady at 77,689

- Iran Fara Bourse overall index edges up 0.2% to 889

- Tehran housing market shows sluggish recovery

 

Tehran Stock Exchange

The Tehran Stock Exchange All-Share Index ended the second week of the new Iranian year barely changed, creeping up 0.1% from last week to close at 77,689. The majority of sectors posted gains but Engineering Services (-4.1%) fell the most, dragged down by MAPNA Group (MAPN -4.1%) which also had the biggest impact on the All-Share Index. Ceramics & Tiles (+6.3%) was the top performer of the week with broad growth across the index. In the last two weeks Ceramics & Tiles has gained over 11% following  improve­ments in net income projections by some companies for the financial year just concluded (ending March 19, 2017).

 

The TSE30 index of the thirty largest companies by market capitalization slipped 0.4% to 3,087. Islamic Republic of Iran Shipping Lines (KSHJ +2.1%) rose the most in the top 30s while the biggest fallers were MAPNA Group (MAPN -4.1%), Golgohar Mining & Industrial Co. (GOLG -2.5%) and Mobile Telecommunication Co. of Iran (HMRZ -1.5%), pulling the TSE30 index into negative territory.

 

The Average Daily Trade Volume (ADTV) over a trading week shortened by two public holidays rose 66% to USD 45 million. Asan Pardakht Persian Co. (APPE +6.4%), SAIPA Group (SIPA +1.6%) and Polyacryl Iran Public Corp. (PLAK +12.8%) saw the highest weekly traded value, recording USD 4.3 million, USD 3.2 million and USD 2.8 million in trades respectively.

 

Iran Fara Bourse

The overall index of the Iran Fara Bourse (IFB) added 0.2% to 889 but its ADTV slumped 54% to USD 19 million. This week investors’ appetite on the IFB turned from debt securi­ties to equities which recorded a total traded value of USD 31 million.

 

Foreign Exchange Market

On the currency market, the official US dollar rate ticked up 0.03% to be quoted by the Central Bank of Iran at IRR 32,431. On the free market the dollar rose 0.6% to IRR 37,521. The CBI reduced the official rate of the euro by 0.7% to IRR 34,617 while it fell 1.7% on the free market to 40,547. The British pound was set by the CBI at IRR 40,475 for a gain of 0.3% but it slipped 0.4% on the free market to IRR 46,700.

 

Economic Developments

The Central Bank of Iran has released the Tehran housing market report for the final month of the Iranian calendar year just ended (to March 20, 2017), showing falls in overall sales but increasing prices.  According to the CBI, sales in the final month totaled 12,247, a fall of 21% from the previous month and 6.4% down from the same month a year earlier. The average price of one square meter of residential space in the reported month was USD 1,217, making gains of 1.5% from the previous month and 5.2% from the same peri­od one year earlier. Data analysis on sold residential units in the final month shows higher demand for older homes compared with the previous year. Sales of residential units older than 15 years saw growth of 11% to 38% over the year. This is the effect of the govern­ment stimulus package for construction companies to renovate old buildings. In the last two years Hassan Rouhani’s government has tried to improve the housing market by sup­porting renovation of old sites and by increasing mortgage levels. Under the new plans mortgage amounts increased by almost half of the average price of residential units, offer­ing loans up to USD 42,600 to households. However housing market benchmarks on the TSE did not record significant progress in the year just ended, with the Construction sector index falling 20% as the result of lower net incomes of housing and construction compa­nies. The latest CBI report shows total annual home sales in Tehran gained 5.4% over the year to reach 162,054 but remain 5.4% down on two years earlier. Tehran’s average price of one square meter of residential space in the year ending 20 March, 2017, was reported at USD 1,154, up 5.3% higher from the previous year and 4.9% more than two years earli­er. In the year just ended the highest number of home sales in Tehran was of units meas­uring 60 to 100 square meters which accounted for 60% of total sales. Residential units costing USD 26,650 to USD 53,300 were the most popular, making up 32% of total sales.

FX Information

Description

6 April 2017

30 March 2017

% Change

Official USD - IRR

32,431

32,422

0.03

Market USD - IRR

37,521

37,297

0.6

Official EUR - IRR

34,617

34,859

(0.7)

Market EUR - IRR

40,547

41,262

(1.7)

Official GBP - IRR

40,475

40,347

0.3

Market GBP - IRR

46,700

46,871

(0.4)

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2016

TSE Overall Index—TEDPIX

77,689

105

0.1

1.2

TSE30 Index

3,087

(12)

(0.4)

0.3

Iran Fara Bourse Overall Index

889

1

0.2

1.6

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) **

45

27

66

IFB Average Daily Traded Val­ue (Million USD) **

19

42

(54)

Industry Index Information

Description

Close

% Change

Ceramics & Tiles

2,221

6.3

Wooden Products

68,585

4.2

Oil Drilling & Services

674

4.1

Non-Metallic Ores

2,351

3.8

Sugar

5,917

3.5

Paper Products

8,570

3.4

Cement

737

3.0

Oil Products

206,945

2.8

Transportation & Logistics

3,934

2.7

Machinery & Equipment

16,069

2.7

Other Financial Services

2,444

2.3

Machinery & Electric Equipment

517,659

2.0

Rubber & Plastics

20,404

1.8

IT

9,267

1.8

Construction

780

1.3

Investment

1,844

1.2

Automotive

17,591

1.2

Insurance

5,179

0.1

TSE All-Share Index

77,690

0.1

Chemicals

4,718

0.0

Coal Mining

1,265

0.0

Medical & Measurement Products

10,244

0.0

Mining

16,981

0.0

Textile

1,387

0.0

Leather Production & Products

1,710

(0.1)

Pharmaceuticals

9,166

(0.1)

Banking

583

(0.4)

Metallic Products

31,780

(0.4)

Industrial Conglomerates

7,164

(0.6)

Telecommunication

902

(0.6)

Base Metals

33,586

(0.7)

Utility Service Providers

191

(1.0)

Foods excluding Sugar

3,528

(1.0)

Agriculture

7,678

(1.0)

Metallic Ore

13,647

(1.2)

Printing & Publishing

146,464

(2.7)

Engineering Services

708

(4.1)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

GGAZ

Ghazvin Sugar Co.

7.7

15.3

GMRO

Marvdasht Sugar Co.

9.2

14.9

ATIR

Iran Tractor Forging Co.

8.3

14.5

ALVN

Alvand Tile & Ceramic Ind. Co.

6.1

14.0

PLKK

Plascokar Saipa Co.

2.8

13.1

TSE Top 5 Losers

Company

Close **

(USD Cents)

% Change

LEAB

Loabiran Co.

10.1

(6.8)

PSER

Pars Ceram PLC

8.6

(6.1)

BPST

Post Bank Iran

3.8

(5.9)

TGOS

Toosgostar Investment Co.

7.0

(4.4)

MESI

MehvarSazan Iran Khodro Inc.

5.8

(4.3)

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

APPE

Asan Pardakht Persian Co.

50.6

4.3

SIPA

SAIPA Group

3.1

3.2

PLAK

Polyacryl Iran Public Corp.

1.8

2.8

PAKS

Paxan Co.

14.9

2.5

IKCO

Iran Khodro

7.4

1.7

** 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