Weekly Market Report
Week ended 26th July, 2017
Saturday thru Wednesday inclusive
Contents
1. The status of our Mutual Fund
2. Market Report
The Indices
Market Analysis and the related schedules
Market movements since the lifting of the sanctions
Commodity Market
Worldwide prices of oil & gas, major currencies precious metals and basic metals
Industry Index Information
3.Detailed Market information
4. Economic News
1-The status of our Mutual Fund
1st Dana Mutual Fund
Three months ended 26th July, 2017
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Chemicals15%
Oil Products3%
Base Metals7%
holdings15%
Pharmaceuticals8%
Foods excluding Sugar
0%
Engineering Services
9%
Telecommunication
41%
utilities0%
Mining of metal ores2%
Comments on the performance of our Mutual Fund
We would like to inform you that despite the uncertainties surrounding the banking sector in Iran and US president 's economic policies and shortages of liquidity and most importantly the lowering of the trading activities of our stock market the value of our unit for the last three months has risen by 0.11% closing at IRR 3.160.134 at the end of the week (last 2 week was IRR 3.156.538). However our annual return as at the above date has declined by 1.99% showing a return of 9.28% p.a .(last week was 11.27% p.a.). This is mainly due to our cautious approach that has remained the bedrock of our investment policy. We believe in long term investment with a steady growth and do not get excited by short term gains. Our changeable market in which more than 50% of the companies are commodity based requires a cautious approach in order to maintain a sustainable growth in the long term. We believe the current enthusiasm in the commodity market will continue and hence we are confident of higher growth in the value of our Fund in the weeks and months ahead.
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2.Market Report-The Indices
All Share Index
Market indices
%change Unit change 26 th July 2017 19 th July 2017
1.75% 1,400 81,562 80,163 All-Share Index
-0.03% (0.3) 920 920 Fara Bourse Index
2.98% 94.20 3,250 3,156 Index Of 30 Largest Co.
1.98% 61.50 3,174 3,112 Index Of 50 Most Active Co.
-0.7% (0.05) 6.68 6.73 P/E
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79,000
79,500
80,000
80,500
81,000
81,500
82,000
1396/04/28 1396/04/31 1396/05/01 1396/05/02 1396/05/03 1396/05/04
Weekly Average Trading Value
Curent Week ($) Last Week ($) Amount Of Change Change Percent
88,021,711 89,311,084 (1,289,373) -1.4%
Market Analysis
The all-share index continued its upward trend with great enthusiasm as both the year end results plus their first quarterly net profits of most companies showed great improvement in their profitabilities against last year. As a result the index rose by 1,400 points (+1.75%) closing at 81,562. However Farabourse declined by 0.3 points (-0.3%) closing at 920.
The average daily trading value reached US$88.022 million showing -1.4% decline against last week.
Most of the trading value related to the Computer & Related Activities and the Base Metals sectors.
The best performers were the Mining of Coal and the Base Metals sectors rising by +16.71% and +11.39% respectively. Conversely the Manufacture of Sugar and the Electric Machinery & Apparatus sectors were the poorest performers declining by -5.34% and -3.15% respectively.
The Debt Market The total trading value of the debt market reached US$241.961 million showing 131% decline against last week. This clearly shows that any improvement in the stock market will lead a lower attraction to the debt market thus more cash will be directed into the market instead. It is estimated that an additional sum of 200 billion tomans were diverted into the stock market in the last two weeks.
The stock market has been through two major periods during the last few months, i.e. The period leading to the re-election of the President Rouhani and the second period commencing from the middle of last month to date. During these periods the flurry of activities has been remarkable starting with a rise in the value of the shares of smaller companies producing rather unstable profits to the larger stock caps with more reliable profitability.
Most of the AGM of the companies were held during this month. Whilst most of the results reflected a positive performance against last year the shares of two sectors i.e. the Base Metals and the Mining of Metal Ores attracted more interest by the investors. As a result their respective indices rose by 11.4% and 10.8% respectively.
The lowering of the value of the US Dollar combined with the rise in the demand in China resulted in a rise in commodity prices across the country affecting the selling prices of the local market.
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A rise of 19% in the net profit of Isfahan Steel CO for the first three months of this year
against its budgeted net profit resulted in a rise in its share price by 13.4%. Also a rise of 33% in the net profit of Iran Copper CO's profit for the first three months against its budgeted profit resulted in a rise in its share price by 18.4% following the opening of its ticker during this week.
Amongst the Mining of Metal Ores, Base Metals and the Industrial sectors Gol Gohar Co with 20.6% growth in its share price was the highest gainer amongst its peers. For the first three months of this year the company 's net profit reached IRR396 per share reflecting 24.1% rise against its forecast. This profit covered 35% of its annual budget.
The other high performer during this week was the Computer & Related Activities sector of which "Pardakht" was the most successful. It's IPO was introduced this week and its initial offer share price rose by 22.7%. Iran Kish 's share price also rose by 19%.
However the Transportation & Storage and the Motor Vehicles & Auto Parts sectors were the most unpopular shares during this week. The experts believe the main reason for their unpopularity was to do with the US impending sanctions which were being voted on at the US Senate. For more information please see the schedules below.
Macro Analysis
US Dollar The reasons for the lowering of the value of US Dollar against major currencies:
1. The housing index declined against last week i.e. 5.5 million units against 5.62 million
units last week.
2. The lowering of the Consumer Confidence.
3. The failure of President Trump to repeal Obamacare.
The lowering in the value of US$ will certainly increase the values of commodities thus higher prices across the board should be expected.
Oil In view of the lowering of the production of Saudi Arabia and Nigeria and the lowering of the value of US$ it is expected the price of oil to increase beyond US$50 per barrel in the near future. Commodities Based on China's expansionary economic policy it is expected the commodity prices such as steel, copper Zinc etc to rise in the future. Currently the price of copper is US$6,282 per ton and it is expected to rise to US$6,400 as in 2015. This is also partly due to a ban on the use of scrap metals by China.
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The following sectors/ companies have had the most positive/negative impact on the market
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Sector
Trading Value ($)
Returns %
Company Code Trading
Values ($) Returns
%
Industries with
positive Impact
Basic metals
35,440,432.3
11.39
Mobarakeh Steel FOLD 14,667,027 13.52
National iranian copper industrial
co.
MSMI 6,273,195 14.97
Bahonar Copper
BAHN 5,917,370 37.36
Mining of metal ores
11,311,624
10.80
Gol-E-Gohar
GOLG 7,490,090 18.51
Chadormalu
CHML 1,428,440 8.96
Bama
BAMA 1,308,724 4.63
Computer And Related
Activities
36,805,113
1.32
Behpardakht Mellat PRKT 22,851,871 22.73
Etebari Iran Kish Co. RKSH 6,351,081 19.23
Industries with
Negative Impact
Chemicals
18,909,646.81
(0.13)
Tamin Petro PTAP 3,195,071.16 (2.51)
Iranian Investment Petrochemical IPTR 1,851,238.80 (2.61)
Transportation and
storage
2,091,671.06
(2.71)
Tuka Trans HTOK 428,597.79 (2.32)
Khalij Fars Trans HFRS 341,117.55 (7.27)
Motor vehicles and auto
parts
9,696,389.04
(1.07)
Rena Investment RENA 1,376,515.55 (0.74)
Iran Khodro IKCO 749,973.64 (4.18)
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Industries with the highest trade value for the week
Industry Trading Value ($)
Computer And Related Activities 36,805,113
Basic metals 35,440,432
Industries with the highest/lowest return for the week
Industry with highest return Return (%)
Mining Of Coal 16.71%
Basic metals 11.39%
Industry with lowest return Return (%)
Manufature of Sugar -5.34%
Electric machinery and apparatus -3.15%
Market movements since the lifting of the sanctions
The following chart shows the movements in the prices of the shares on the Tehran Stock Market
since the lifting of the sanctions:
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Commodity Market
* No transactions on the Mercantile Market were undertaken during this week. 9
name product Current Week
Price(IRR) Last Week Price(IRR)
Change Percent
Price(USD)
Iralco 1000 pound ingot
99.8 * * * *
Isfahan oil refinary vaccum bottom *
6,945 * *
Tondgouyan oil refinary of
Tehran
lubecat
10,644
10,291 3.43%
0.28
Esfehan steel company round bar * * * *
National Iranian copper
industrial company
cathode
232,004
241,051 -3.8%
6.12
Esfehan mobarakeh steel
company
B hot steel *
21,978 * *
Zagros Petrochemical
Company
methanol
7,843
7,884 -0.5%
0.21
Jam Petrochemical Company High Density
Polyethylene BL3 * * * *
Shiraz Petrochemical
Company
Urea
7,509
7,505 0.1%
0.20
Maroun Oil Company Polypropylene
MR332C
43,431 * *
1.14
Khouzestan Steel Company Steel Bloom 5SP
(150*150)
16,843 * *
0.44
Bandarabbas Pasargad Oil
Company
Bitumen 60/70 *
9,400 * *
Worldwide prices of oil & gas, major currencies, precious metals
and basic metals
Oil Change% 26/07/2017 19/07/2017 Unit
-1.7% 46 46.8 Barrel/Dollar Opec
2.6% 1.6 1.56 Gallon/Dollar Petrol
-0.3% 2.95 2.96 One Million-BTU Natural Gas
Currency (IRR) Change% 26/07/2017 19/07/2017 Currency
0.14% 32,705 32,659 Official Rate
Dollar 0.5% 37,940 37,770
Free Market Rate
2.7% 45,240 44,070 Euro
Precious Metal Change% 26/07/2017 19/07/2017 Unit Metal
0.35% 1,247 1,242 Dollar/ Ounce Gold
0.43% 16.44 16.37 Dollar/ Ounce Silver
Basic Metal
Change% 26/07/2017 19/07/2017 Unit Product
0.9% 1,941 1,924 Dollar/ Tonne Aluminum
4.9% 2,319 2,212 Dollar/ Tonne Lead
3.1% 2,821 2,736 Dollar/ Tonne Nickel
5.3% 6,282 5,966 Dollar/ Tonne Copper
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Industry Index Information
Description Close % Change
Medical & Measurement Products 10,244.3 0.0
Wooden Products 56,984.9 0.0
Insurance 5,131.8 0.8
Printing & Publishing 173,708.6 0.8
Machinery & Equipment 16,503.7 1.6
Cement 742.4 3.9
Coal Mining 1,349.7 16.7
Leather Production & Products 1,789.2 0.0
Non-Metallic Ores 2,467.2 1.9
Metallic Products 30,871.4 1.0
IT 13,087.8 1.3
Transportation & Logistics 3,499.2 (2.7)
Paper Products 13,240.1 (1.5)
Rubber & Plastics 23,374.7 (1.3)
Chemicals 4,745.1 (0.1)
Construction 802.8 2.4
Ceramics & Tiles 2,291.0 1.5
Foods excluding Sugar 3,826.3 (1.0)
Investment 1,931.3 0.7
Textile 1,376.4 0.0
Other Financial Services 2,425.8 (0.6)
Agriculture 7,133.8 (2.0)
Pharmaceuticals 9,236.6 0.0
Machinery & Electric Equipment 508,260.5 (3.1)
Industrial Conglomerates 7,637.1 1.2
Sugar 9,094.7 (5.3)
Telecommunication 954.5 (1.0)
Utility Service Providers 194.2 (1.0)
Automotive 18,289.4 (1.1)
Mining 16,298.6 2.2
Base Metals 39,779.9 11.4
Engineering Services 693.2 0.0
Metallic Ore 14,402.5 10.8
Banking 576.3 0.0
Oil Products 217,097.6 0.7
Oil Drilling & Services 603.8 0.0
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3.Detailed Market information
FX Information
Description 22-Jul 26-Jul %changes
official USD-IRR 32,670 32,705 0.11%
Market USD-IRR 37,704 37,887 0.49%
Market Euro(€) -IRR 44,045 43,861 -0.42%
Market Pound( £)-IRR 49,110 49,330 0.45%
TSE TOP 5 Gainers
Symbol Sector Company Name
close %change
(USD Cent)
SLMN Manufacture of food products and beverages except sugar
Salemin Factory
9.50 66.74%
BAHN Manufacture of basic metals Bahonar Copper
15.57 36.37%
PASH manufacture of chemicals and chemical products Paksho 41.32 25.54%
PRKT Computer and related activities Behpardakht Mellat
59.55 22.78%
SURO Manufacture of cement،lime and plaster Oroumiyeh Cem.
8.55 21.43%
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TSE TOP 5 LOSERS
Symbol Sector Company Name
close %change
(USD Cent)
AFRZ Computer and related activities Afra Net Co. 7.59 -16.86%
GSHI Manufacture of sugar Shirin Khorasan
53.25 -14.42%
LIAZ Manufacture of other non-metallic mineral product Lia company
33.07 -13.44%
BLSZ Industrial contractors Const and Rail
46.58 -11.56%
IAGM Computer and related activities Iran Argham 17.47 -11.17%
TSE TOP 5 VALUE LEADERS
Symbol Sector
close Trade Value
Company Name
(USD Cent)
USD Million
PRKT Computer and related activities Behpardakht Mellat
59.55 39.7
FOLD Manufacture of basic metals Mobarakeh
Steel 4.44 16.0
MSMI Manufacture of basic metals I. N. C. Ind. 4.79 7.8
RKSH Computer and related activities Etebari Iran
Co 15.85 6.5
BAHN Manufacture of basic metals Bahonar
Copper 15.57 6.2
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4.Economic News
Iraq Seeking Rise in Natural Gas Imports from Iran
Managing Director of the National Iranian Gas Company (NIGC) Hamid Reza Araqi said Iraq has sought to increase its natural gas imports from the Islamic Republic.
Iranian Judiciary, Oil Ministry Form Committee to Review Gas Deal with Total
A member of the Iranian parliament’s Energy Commission said the country’s Oil Ministry and the Judiciary have established a joint committee to review a controversial $5 billion gas deal recently signed with France’s energy giant Total.
Iran Starts Building Mideast’s Largest Solar Farm
Iran’s energy minister on Thursday inaugurated a project to build the Middle East’s largest solar plant in the country’s southeastern province of Kerman.
Iran-China Bilateral Trade Up by 31%: Report
The total value of bilateral trade between Tehran and Beijing in the first half of 2017 increased by 31 percent compared to the amount for a year earlier, the East Asian country’s customs data showed.
New Pipeline to Guarantee Steady Supply of Gas in North Iran
A much-awaited gas pipeline in Iran’s northern areas, which will come on stream next week, is going to guarantee the steady supply of natural gas to the regions that experienced harsh winters in the past when neighboring Turkmenistan cut off gas supplies to Iran.
Iran’s Power Generation Capacity Tops 77,000 MW
Iranian Deputy Energy Minister Houshang Falahatian announced that the country’s nominal capacity to produce electricity has surpassed 77,000 megawatts (MW).
Iran, France Ink Deal to Cooperate in Making Subway Cars
High-ranking officials in Iran’s rail industry signed a major deal with the French rail car manufacturer Alstom to boost cooperation in the production of subway cars.
Korea Focusing on Small, Midsize Businesses in Iran: Envoy
One of South Korea’s main trade strategies is to grow links with the Iran’s small and midsize businesses in order to minimize the adverse impacts of any severance of trade interaction between a few major companies, South Korean ambassador to Tehran said.
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Official Sees Sanctions as Opportunity for Iran-Russia Partnership
Secretary of Iran’s Expediency Council Mohsen Rezaei said Tehran and Moscow, both facing Western sanctions, could use the embargoes as an opportunity to reap economic benefits.
US Congress Reaches Deal on Sanctions Bill for Iran, Russia
US Republicans and Democrats have reached agreement on legislation that allows new sanctions against Russia, Iran and now also North Korea, leading congressional Democrats said on Saturday.
Iran’s Parliament Forms Committee to Review Gas Deal with France’s Total: MP
The spokesman for the Iranian parliament’s Energy Commission announced on Saturday that a special committee headed by Parliament Speaker Ali Larijani has been formed to review a controversial $5 billion gas deal recently signed with France’s energy giant Total.
Italy’s Eni Says Happy with Total’s Presence in Iran
The CEO of Eni said the Italian oil giant is not competing with France’s Total in Iran, noting that it has also signed an agreement with the National Iranian Oil Company (NIOC) to develop oil and gas fields in the Islamic Republic.
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