Iran Weekly Market Report - July 21, 2017
|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.
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