Weekly Market Report

Trading Week : 17 – 21 June 2017

Summary

Main Topics

- Paper Products sector bucks trend as TSE slips further

- Steel companies boost trading volumes on IFB

- Iran’s GDP grows 12.5%

 

Tehran Stock Exchange

The Tehran Stock Exchange continued its downward trend, with the TSE All-Share Index losing 0.9% over the week to close at 78,736. Over the last four weeks the main index has fallen 2.9%. Paper Products bucked the trend however, growing 3.3% over the week to become the top performing sector and posting gains of 7.5% over four weeks. Iran Carton (KRTI +8.6%) has been the main driver of the sector, jumping 38% over the past month. This week few sectors closed in positive territory. Transportation & Logistics (-4.8%) led fallers, largely dragged down by Islamic Republic of Iran Shipping Lines (KSHJ -4.8%).

The TSE30 index of the thirty largest companies by market capitalization fell 1% over the week to close at 3,049. Mobile Telecommunication Co. of Iran (HRMZ +2.5%) rose the most in the top 30s, while Islamic Republic of Iran Shipping Lines was the biggest faller.

The Average Daily Trade Volume (ADTV) was USD 39 million, up 8.3% from last week. Silica Sand Mfg. Co. (TAMI +11.1%), Mobin Petrochemical Co. (MOBN +2.26%) and Asan Pardakht Persian Co. (APPE -0.3%) posted the highest volumes with USD 4.3 million, USD 3.2 million and USD 2.7 million respectively.

 

Iran Fara Bourse

The overall index of the Iran Fara Bourse added 0.1% to close at 903, while its ADTV rose 66% to USD 60 million. Equities remained the most traded instrument on the IFB with vol­ume of USD 184 million, boosted by trading in base metal and construction companies.

 

Foreign Exchange Market

The Central Bank of Iran raised the official rate of the US dollar by 0.1% to IRR 32,493, while the dollar gained 0.4% on the free market to IRR 37,436. The official euro rate lost 0.3% to IRR 36,292 despite its 0.2% increase on the free market to IRR 41,865. The Brit­ish pound’s official rate fell 0.5% to IRR 41,157 while on the free market sterling lost 0.6% to IRR 48,100.

 

Economic Developments

Iran’s GDP in constant prices grew 12.5% in the Iranian calendar year ending March 20, 2017, according to the Central Bank of Iran’s latest estimate. The growth rate slowed to 12.9% in the fourth quarter from 16.8% in the third quarter. The oil sector posted the high­est growth, gaining 61.6% as the result of removal of sanctions following the Joint Com­prehensive Plan of Action agreed between Iran and the EU3+3. The CBI report showed that Construction was the worst performing sector, falling 13.1% over the year. Iran’s GDP was estimated at IRR 6,691,109 billion at constant prices, and at IRR 12,722,850 billion in current prices. The CBI has not yet released a GDP estimate in US dollar terms. The bank uses two schemes of official and free market rates in calculating GDP in Iranian rials, meaning the total cannot be directly converted into dollar terms.

FX Information

Description

22 June 2017

15 June 2017

% Change

Official USD - IRR

32,493

32,457

0.1

Market USD - IRR

37,436

37,282

0.4

Official EUR - IRR

36,292

36,411

(0.3)

Market EUR - IRR

41,865

41,796

0.2

Official GBP - IRR

41,157

41,356

(0.5)

Market GBP - IRR

48,100

48,400

(0.6)

Market Information

Index Info

Close

Unit Change

% Change

%  Change from March 20, 2017

TSE Overall Index—TEDPIX

78,736

(729.5)

(0.9)

2.6

TSE30 Index

3,049

(31.0)

(1.0)

(0.9)

Iran Fara Bourse Overall Index

903

1.1

0.1

3.2

Description

This Period

Last Period

Market P/E

6.8

6.9

Trade Statistics

Description

This Period

Last Period

% Change

TSE Average Daily Trade Vol­ume (Million USD) **

39

36

8.3

IFB Average Daily Traded Val­ue (Million USD) **

60

36

66

Industry Index Information

Description

Close

% Change

Mining

18,751

11.2

Paper Products

13,451

3.3

Machinery & Electric Equipment

558,583

2.8

Telecommunication

935

1.8

Utility Service Providers

196

1.5

Ceramics & Tiles

2,073

0.8

Leather Production & Products

1,737

0.0

Medical & Measurement Products

10,244

0.0

Textile

1,450

0.0

Wooden Products

62,458

0.0

Industrial Conglomerates

7,440

(0.2)

Coal Mining

1,255

(0.3)

Chemicals

4,796

(0.4)

Pharmaceuticals

9,519

(0.6)

Metallic Products

30,517

(0.6)

Engineering Services

691

(0.8)

TSE All-Share Index

78,736

(0.9)

Insurance

5,106

(1.0)

Construction

747

(1.0)

Banking

572

(1.1)

IT

12,338

(1.1)

Metallic Ore

12,396

(1.3)

Base Metals

32,530

(1.3)

Cement

700

(1.5)

Machinery & Equipment

16,123

(1.6)

Non-Metallic Ores

2,316

(1.8)

Foods excluding Sugar

3,787

(2.0)

Investment

1,898

(2.2)

Automotive

18,356

(2.4)

Rubber & Plastics

22,444

(2.5)

Sugar

7,956

(2.5)

Oil Products

210,112

(3.0)

Oil Drilling & Services

608

(4.6)

Other Financial Services

2,426

(4.8)

Transportation & Logistics

3,755

(4.8)

Agriculture

7,255

(6.3)

Printing & Publishing

176,034

(10.3)

TSE Top 5 Gainers

Company

Close **

(USD Cents)

% Change

LENT

Iran Lent Co.

8.9

18.1

GSHI

Khorasan Shirin Sugar Co.

40.0

15.3

TKSM

Takceram Tile Manufacturing Co.

5.3

15.1

GORJ

Gorji Biscuit Co.

11.6

11.6

TAMI

Silica Sand Mfg. Co.

14.1

11.1

TSE Top 5 Value Leaders

Company

Close **
(USD Cents)

Trade Value **

(Million USD)

TAMI

Silica Sand Mfg. Co.

14.1

4.3

MOBN

Mobin Petrochemical Co.

9.7

3.2

APPE

Asan Pardakht Persian Co.

65.2

2.7

HMRZ

Mobile Telecom. Co. of Iran

88.0

2.5

TRNS

Iran Transfo Corp.

16.4

2.2

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

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