Weekly Market Report

Trading Week Ended: 4 – 8 March 2017

Summary

Main Topics

- The TSE All-Share Index closes at 76,285 with 1.5% weekly loss

- Iran Fara Bourse’s overall index slips by 0.6% by closing at 865

- Iran records an economic growth of 7.2% post JCPOA

 

Tehran Stock Exchange

The Tehran Stock Exchange All-Share Index dropped 1.5% over the week to close at 76,285, losing ground for the second straight week. Most sectors closed in negative terri­tory under selling pressure. Some analysts believe the sell-off has been triggered by a need for cash by companies in the last working days of the Iranian calendar year. The big­gest faller of the week was Engineering Services (-13.9%) due to a sharp drop by MAPNA Group (MAPN -13.6%) after its ticker reopened. MAPN had been suspended from trading for almost eight months because of a lawsuit over ownership of the company that is MAP­NA’s main shareholder. Among the major sectors on the TSE the biggest weekly gain was recorded by Transportation & Logistics (+1.5%) and Chemicals (+0.8%). Investors wit­nessed minor weekly growth across listed companies under Transportation & Logistics index. Fars Chemical Industries Co. (SHFS +20.3%) was the main driver of the Chemicals sector. The company has raised its projected net income for the third time for the current financial year ending March 19 to IRR 40 billion (approx. USD 1.0 million), representing a 32% increase in the projections.  The formalin and resins manufacturer has also released its initial forecasts for the next financial year ending March 20, 2018, projecting net income of IRR 44 billion (approx. USD 1.2 million). This week some oil product companies dou­bled their projections of net income but market reaction was subdued. Some observers attributed the lack of market response to year-end sales pressure, but some people with knowledge of the matter believe the companies are over-estimating future prices for their products. Gasoline prices are currently regulated in Iran, and gasoline makes up 20% to 40% of sales of these companies.

 

The TSE30 index of the thirty largest companies by market capitalization fell 1.6% over the week to close at 3,070.  Esfahan Oil Refining Co. (PNES +2.2%) was the biggest gain­er while MAPNA Group (MAPN -13.6%) led the fallers.

 

In the first full trading week of March, the Average Daily Trade Volume (ADTV) rose 50% to USD 75 million. Stocks with the highest weekly trade volume included MAPNA Group (-13.6%), National Iranian Copper Industries Co. (MSMI -6.9%) and SAIPA Group (SIPA -0.6%) with USD 10.7 million, USD 6.4 million and USD 5.8 million of trades respectively.

 

Iran Fara Bourse

The Iran Fara Bourse overall index closed at 865, down 0.6% from last week. The market ADTV fell 21% to USD 50 million. Debt securities remained the most popular on the IFB with a total traded value of USD 187 million.

 

Foreign Exchange Market

On the FX market, the Central Bank of Iran raised the official US dollar rate by 0.04% to IRR 32,420. But on the free market the dollar fell 1.2% over the week to IRR 37,327. The CBI lowered the official rate of the euro by 0.2% to IRR 34,137, while its free market rate slipped 0.7% to IRR 39,867. The official rate of the British pound fell 1.7% to IRR 39,425, while its free market rate lost 2.7% to IRR 46,800.

 

Economic Developments

The Statistical Centre of Iran released some details of economic growth for the first nine months of the current Iranian calendar year ending March 20. According to the SCI, Iran’s GDP grew 7.2% compared with the same period last year. One year earlier GDP was growing by only 0.3%. The strongest sector over the first nine months of this year was In­dustry which posted 10.5% growth. Agriculture gained 5.7% and Services grew by 5.4%. Among industrial sub-sectors the strongest growth was posted by Drilling Oil & Gas (+85%) and Mining (+61%). Tax revenues from imports increased by 39%. Data in the SCI’s report are based only on the Iranian rial. We have omitted the absolute figures given in rials. Their conversion to other currencies cannot be calculated because the SCI does not release a detailed breakdown of the official and free market rates of foreign currencies it uses. 

FX Information

Description

9 March 2017

1 March 2017

% Change

Official USD - IRR

32,420

32,407

0.04

Market USD - IRR

37,327

37,764

(1.2)

Official EUR - IRR

34,137

34,213

(0.2)

Market EUR - IRR

39,867

40,142

(0.7)

Official GBP - IRR

39,425

40,099

(1.7)

Market GBP - IRR

46,800

48,100

(2.7)

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2016

TSE Overall Index—TEDPIX

76,285

(1,189)

(1.5)

(4.9)

TSE30 Index

3,070

(51)

(1.6)

(9.2)

Iran Fara Bourse Overall Index

865

(5)

(0.6)

7.4

Description

This Period

Last Period

Market P/E

7.2

7.3

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

75

50

50

IFB Average Daily Traded Val­ue (Million USD) **

50

64

(21)

Industry Index Information

Description

Close

% Change

Transportation & Logistics

3,806

1.5

Printing & Publishing

129,967

1.1

Chemicals

4,762

0.8

Insurance

4,981

0.5

Telecommunication

873

0.4

Industrial Conglomerates

7,266

0.3

Leather Production & Products

1,701

0.1

Oil Products

197,922

0.01

Coal Mining

1,265

0.0

Medical & Measurement Products

10,244

0.0

Textile

1,382

(0.02)

Metallic Products

38,619

(0.2)

IT

8,666

(0.3)

Pharmaceuticals

9,019

(0.5)

Utility Service Providers

182

(0.7)

Ceramics & Tiles

1,999

(1.3)

Automotive

17,321

(1.4)

Banking

583

(1.5)

TSE All-Share Index

76,286

(1.5)

Foods excluding Sugar

3,571

(1.6)

Machinery & Electric Equipment

498,521

(1.7)

Non-Metallic Ores

2,161

(1.7)

Investment

1,762

(1.8)

Cement

701

(2.1)

Rubber & Plastics

18,855

(2.2)

Sugar

5,358

(2.4)

Metallic Ore

13,251

(2.9)

Base Metals

33,529

(3.2)

Oil Drilling & Services

633

(3.7)

Construction

711

(4.0)

Mining

16,981

(4.3)

Other Financial Services

2,176

(4.6)

Paper Products

8,039

(4.7)

Agriculture

6,979

(5.6)

Machinery & Equipment

14,736

(6.7)

Wooden Products

58,064

(13.5)

Engineering Services

725

(13.9)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

MSTI

Motorsazan Iran Tractor Mfg. Co.

7.6

25.5

SHFS

Fars Chemical Industries Co.

5.4

20.3

BKHZ

Middle East Bank

6.7

12.6

HFRS

Persian Gulf Int. Transportation

13.9

12.0

SMAZ

Mazandaran Cement Co.

12.9

11.3

TSE Top 5 Losers

Company

Close **

(USD Cents)

% Change

BAFG

Bafgh Mining Co.

30.7

(19.1)

FRVR

Iran Mineral Processing Co.

20.8

(18.2)

BOTA

Butane Industrial Group

8.7

(16.1)

ROOI

Iran Zinc Mines Dev. Co.

5.7

(15.4)

PNTB

Tabriz Oil Refining Co.

11.2

(15.2)

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

MAPN

MAPNA Group

20.4

10.7

MSMI

National Iranian Copper Ind. Co.

5.2

6.4

SIPA

SAIPA Group

3.2

5.8

AZAB

Azarab Industries Co.

8.5

4.9

LMIR

Luleh va Mashinsazi Iran Co.

18.1

4.4

** 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