Firouzeh Asia Brokerage Team
Firouzeh Asia Brokerage Company
Tehran Stock Exchange
Tehran stocks gained 1% in the trading week following Iran’s presidential election with the TSE All-Share Index closing at 81,146. Ceramics & Tiles (+7.9%) was the top performing sector of the week which saw the majority of sectors closing in positive territory. Gains were seen across Ceramics & Tiles, led by Takceram Tile Mfg. Co. (TKSM +18.1%). Promising monthly sales reports by listed companies triggered demand for the sector. Oil Products (-0.6%) was the biggest faller among major sectors, mostly due to weak performances by Bandar Abbas Oil Refining Co. (PNBA -1.8%) and Esfahan Oil Refining Co. (PNES -2.0%).
The TSE30 index of the thirty largest companies by market capitalization rose 0.5% to 3,145. SAIPA Group (SIPA +3.6%) gained the most while Tejarat Bank (BTEJ -2.1%) was the weakest share in the top 30s.
This week the Average Daily Trade Volume (ADTV) added 64% to USD 94 million. The most traded stock was Barez Industrial Group (BARZ +4.9%) with volume of USD 8.5 million, followed by SAIPA Group (SIPA +3.6%) and Iranian Investment Petrochemical Group (IPTR +5.3%) which both saw USD 7.7 million in trades.
Iran Fara Bourse
The overall index of the Iran Fara Bourse closed at 926, up 1.2% from the previous week. Stronger demand for equities saw its ADTV rise to USD 45 million from USD 31 million. Stocks overtook debt securities as the most traded instruments with volumes of USD 160 million for the week.
Foreign Exchange Market
The Central Bank of Iran kept the official US dollar rate unchanged at IRR 32,422. On the free market the dollar fell 0.5% to IRR 37,432. The euro’s official rate was quoted by the CBI up 0.8% at IRR 36,476 but it fell on the free market by 1.9% to IRR 41,506. The CBI added 0.1% to the official rate of the British pound at IRR 42,117, while its free market quote dropped 1.1% to IRR 48,450.
Economic Developments
Iran’s crude steel production grew 11% to 18.4 million tonnes in the Iranian calendar year ending March 19, 2017, according to the Iran Steel Manufacturing Association. The total of manufactured steel products rose 4% to 18.1 million tonnes. Hot rolled steel coil remained the main product although output was unchanged at 6.9 million tonnes. Biggest production growth was seen in coated steel plates which increased 20% to 1.1 million tonnes. Iran’s annual crude steel production capacity is currently 27 million tonnes, but the industry’s aim is to expand capacity to 55 million tonnes over the next eight years. Reaching this target requires an estimated investment of USD 30 billion.
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