Iran Weekly Market Report - July 17, 2017

Tehran Stock Exchange

The Tehran Stock Exchange All-Share Index closed up 1.0% at 79,509 for its first weekly gain since late May. The main TSE index was boosted by advances in large-cap stocks, including Golgohar Mining & Industrial Co. (GOLG +4.9%), Khouzestan Steel Co. (FKHZ +13.2%) and Mobile Telecommunication Co. of Iran (HRMZ +4.6%). The top performing sector of the week was Sugar (+6.9%), singled out by speculative traders. Paper Products (-3.4%), a favorite for speculators in previous weeks, became the biggest faller in the trad­ing week ending July 12.

The TSE30 index of the thirty largest companies by market capitalization rose 1.7% over the week, closing at 3,099. Promising financial reports issued by metal, mining and oil product companies lifted several constituents of the top 30s. The TSE30 index has reached its highest level for a month, with gains also reflected in the Turquoise TSE30 Index ETF (CFIF +1.5%).

This week the Average Daily Trade Volume (ADTV) increased 45% to USD 61 million. Despite higher demand for stocks, market appetite is still weighted towards debt securi­ties. Companies most traded by value were Asan Pardakht Persian Co. (APPE +6.0%), Esfahan Mobarakeh Steel Co. (FOLD +4.5%) and Parsian Electronic Commerce Co. (EPRS +6.4%) with USD 7.9 million, USD 5.3 million and USD 4.4 million respectively.

Iran Fara Bourse

Gains were also seen on the Iran Fara Bourse with its overall index advancing 1.1% to end the week at 909. Similarly the ADTV on the IFB increased 29% to USD 48 million, while debt securities remained the most traded, with total volume of USD 142 million.

Foreign Exchange Market

The Central Bank of Iran increased the official rate of the US dollar by 0.2% to IRR 32,609 but on the free market the dollar fell 0.3% to IRR 37,796. The official rate of the euro was quoted 1% higher by the CBI at IRR 37,291 while on the free market it dropped 1.7% to IRR 42,874. The British pound’s official rate was set 0.2% lower at IRR 42,055 while ster­ling slipped 0.1% on the free market to IRR 48,750.

Economic Developments

Unemployment in the three months to June 21 edged up to 12.6% from 12.5% in the pre­vious quarter, according to Statistical Centre of Iran (SCI) data for the active population over 10 years old. Its report for the first quarter of the current Iranian calendar year showed the jobless rate for those aged 15 to 29 years rose to 26.4% from 25.5%. Over the past five years the unemployment rate has ranged from a low of 9.5% in the quarter ending March 20, 2015, to a high of 12.8% in the three months to June 20, 2012.

According to SCI data, the active population over 10 years totals 26.6 million while the employment to population ratio has risen to 40.6% from 38.9% in the previous quarter. A sectoral breakdown shows that services account for the largest share of jobs with 11.5 million workers, while agriculture is the smallest sector with 4.3 million.


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.