Iran Weekly Market Report - June 19, 2017

Tehran Stock Exchange

The Tehran Stock Exchange All-Share Index dropped for the third consecutive week, clos­ing down 0.4% at 79,465. The index had risen for three months up to the last week of May, reaching 2-1/2 year highs of 81,200 but has since retreated by 2.1%. Some analysts believe the recent tensions between Persian Gulf countries and the terrorist attacks in Tehran may have resulted in risk aversion in the market. However, by considering historic trends in  in recent years, the TSE’s overall performance during June has not been prom­ising as the majority of listed companies hold their AGMs in June and July. The ticker of companies holding AGMs are taken off the trading board two trading days in advance of the meeting. In the trading week ending June 15 sectors barely saw significant growth. Machinery & Electric Equipment (+2.4%) rose the most, while Ceramics & Tiles (-5.3%) led fallers, taking its decline over the last three weeks to more than 14%.

The TSE30 index of the thirty largest companies by market capitalization slipped 0.5% to close at 3,080. Most of the top 30s ended in negative territory, while Bandar Abbas Oil Refining Co. (PNBA -4.6%) weighed most on the index. The slight gain over the week of Iran Khodro (IKCO +0.71%), the biggest car producer in Iran, was the highest of the TSE30 constituents.

This week the Average Daily Trade Volume (ADTV) rose 8% to USD 36 million, supported by trading in debt securities and block trades. The highest volumes were posted by Sakht Ajand (SAJN +6.5%), Barez Industrial Group (BARZ +1.3%) and Bandar Abbas Oil Refin­ing Co. (PNBA -4.6%) with USD 6.1 million, USD 3.7 million and USD 1.8 million respec­tively.

Iran Fara Bourse

The overall index of the Iran Fara Bourse added 0.2% to 902 while the market’s ADTV declined 11% to USD 36 million. Equities were the securities most in demand on the IFB, recording total traded value of USD 118 million. The market trend for stocks was triggered by speculative trades in companies listed on the Base Market of Iran Fara Bourse.

Foreign Exchange Market

The Iranian rial strengthened over the week against major currencies. The Central Bank of Iran left the official rate of the US dollar unchanged at IRR 32,457 while its free market rate dropped 0.1% to IRR 37,282. The CBI lowered the official rate of the euro by 0.4% to IRR 36,411 while on the free market the euro dropped 0.5% to IRR 41,796. The British pound’s official rate fell 1.6% to IRR 41,356 and slipped 0.1% on the free market to IRR 48,400.