Firouzeh Asia Brokerage Team
Firouzeh Asia Brokerage Company
Tehran Stock Exchange
Tehran stocks continued to make steady gains this week, with the Tehran Stock Exchange All-Share Index closing up 0.2% at 81,741 to reach its highest levels in 2-1/2 years. The top performing sector of the week was again Transportation & Logistics (+7.2%) due to continued demand for Islamic Republic of Iran Shipping Lines (KSHJ +7.8%). The weakest sector was Ceramics &Tiles (-5.1%), extending its losses to 8.4% over two weeks. Takceram Tile Manufacturing Co. (TKSM -19.0%) has been the main mover of the sector lately as a top pick of speculators. Despite the promising outlook for metal and mining companies, the growth rate of Base Metals (+1.4%) has slowed over the past three weeks since the sector advanced 11.4% in one week. With the All-Share Index trading at its highest for 2-1/2 years, traders are starting to show some risk aversion however.
The TSE30 index of the thirty largest companies by market capitalization closed at 3,281, up 0.3% on the week. Islamic Republic of Iran Shipping Lines (KSHJ +7.8%) led gainers, while Iran Khodro (IKCO -2.4%) was the biggest faller.
This week’s Average Daily Trade Volume fell 19% to USD 41 million. Esfahan Mobarakeh Steel Co. (FOLD +1.4%), Tabriz Oil Refining Co. (PNTB +8.4%) and Takceram Tile Manufacturing Co. (TKSM -19.0%) were the most traded shares on the TSE by value, with volumes of USD 7.0 million, USD 4.2 million and USD 3.8 million respectively.
Iran Fara Bourse
The overall index of the Iran Fara Bourse slipped 0.6% over the week to end at 918. The market’s ADTV rose 136% to USD 71 million. Equities saw higher trading volumes than other instruments, mostly because of a block trade in Maroon Petrochemical Co. (PMRZ -0.6%). Parsian Oil & Gas Development Co. (PASN +4.1%) sold a 7% stake in this ethylene producer for USD 245 million.
Foreign Exchange Market
The Central Bank of Iran continued to raise the official rate of the US dollar, which was quoted up 0.3% on the week to IRR 32,931. Since the start of the year, the dollar’s official rate has increased by 1.7%. On the free market the dollar rose 0.3% over the week to IRR 38,173. The official rate of the euro gained 0.6% to IRR 38,783 while its free market rate rose 0.1% to IRR 45,012. The British pound was quoted by the CBI down 0.4% at IRR 42,495 and on the free market it fell 0.8% to IRR 48,700.
Economic Developments
Iran’s steel production grew 13% to 4.8 million tonnes in the three months to June 21 compared with the same year-ago period. Hot rolled coil, the main product, gained 3% to 1.8 million tonnes. Coated coil products posted the highest growth rate at 65%, reaching 397,000 tonnes. The Iran Steel Manufacturing Association reported that total national output rose 11% to 18.4 million tonnes in the Iranian year ending March 19, 2017. Higher domestic output and rising steel prices have boosted the outlook and market sentiment for steel manufacturing companies quoted on the Tehran Stock Exchange. Some analysts believe the current Iranian calendar year (ending March 2018) could be outstanding for some companies, including Esfahan Mobarakeh Steel Co. (FOLD +1.4%) and Khouzestan Steel Co. (FKHZ -0.1%).
This report is solely for information and general circulation only and may not be published, circulated, reproduced or distributed in whole or in part to any other person without our written consent. This report should not be construed as an offer or solicitation for the subscription, purchase or sale of the securities mentioned herein. Whilst we have taken all reasonable care to ensure that the information contained in this publication is not untrue or misleading at the time of publication, we cannot guarantee its accuracy or completeness, and you should not act on it without first independently verifying its contents. Any opinion or estimate contained in this report is subject to change without notice. We have not given any consideration to and we have not made any investigation of the investment objectives, financial situation or particular needs of the recipient or any class of persons, and accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of the recipient or any class of persons acting on such information or opinion or estimate. You may wish to seek advice from a financial advisers regarding the suitability of the securities mentioned herein, taking into consideration your investment objectives, financial situation or particular needs, before making a commitment to invest in the securities.
Privileged / confidential information may be contained in this document. If you are not the addressee indicated in this document (or responsible for delivery of this message to such person), you may not copy or deliver this message to anyone. Opinions, conclusions and other information in this document that do not related to the official business of Turquoise Partners Ltd. and Firouzeh Asia Brokerage CO. and their respective connected and associated corporations shall not be understood as neither given nor endorsed.
Recommended Content
Editors’ Picks
EUR/USD holds steady near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold: Middle East war fears spark fresh XAU/USD rally, will it sustain?
Gold price is trading close to $2,400 early Friday, reversing from a fresh five-day high reached at $2,418 earlier in the Asian session. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Israel vs. Iran: Fear of escalation grips risk markets
Recent reports of an Israeli aerial bombardment targeting a key nuclear facility in central Isfahan have sparked a significant shift out of risk assets and into safe-haven investments.