Weekly Market Report. Week ended 18 th October, Saturday thru Wednesday inclusive. Contents

Transcription

1 Weekly Market Report Week ended 18 th October, 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 Worldwide prices of oil & gas, major currencies precious metals and basic metals Industry Index Information 3.Detailed Market information 4. Economic News

2 The status of our Mutual Fund 1 st Dana Mutual Fund Three months ended 18 th October, ,550,000 3,450,000 3,350,000 3,250,000 3,150,000 3,050,000 2,950,000 percentage of each industry in dana fund Mining of metal ores 13% Oil Products 3% Chemicals 9% Telecommunicatio n 14% Base Metals 30% Engineering Services 13% Information and communication 0% Pharmaceuticals 5% holdings 13% 1

3 Comments on the performance of our Mutual Fund The value of our unit for the last three months has risen by 1.1% closing at IRR 3,502,887 at the end of the week (last week was IRR 3,464,685). However our annual return as at the above date has declined by 0.85% showing a return of 12.99% p.a.(last week was 13.84% p.a.). We currently hold 6 th position amogst our peers. 2

4 2.Market Report-The Indices All Share Index 86, , , , , , , , , , Oct 15-Oct 16-Oct 17-Oct 18-Oct Series1 84, , , , , , Market indices Title October 11, 2017 October 18, 2017 Unit change Change % All-Share Index 84, , , % Fara Bourse Index % Index Of 30 Largest Co. 3, , % Index Of 50 Most Active Co. 3, , % P/E % Daily Average Trading Value Last Week ($) Current Week ($) Amount Of Change ($) Change Percentage 36,157,401 33,273,963-2,883, % 3

5 Market Analysis The Market Following the overwhelming protest by virtually all the members of the security council against a possible withdrawal of US from the Iran nuclear deal along with a rise in Base Metals prices the market ignored this threat and rose by 1,024 points (+1.2%) closing at 85,768. However the weekly trading volume declined by 24% against last week reaching a total value of US$ million. The Debt Market The total weekly trading volume of the debt market reached US$ million showing 39% decline against last week. The rate of return on T bills dropped to 15% p.a. paving the way for further declines in the weeks and months ahead. Market Activities Following the resumption of the activity of the Market Stability Fund combined with the support of the banking industry the share prices of the companies within the Motor Car & Auto Parts sector turned positive during this week. On Monday the share price of " Hasa" ( under Motor Cars & Auto sector) previously offered to the market as an IPO turned stable after rising by 27% with a high trading volume. During this week we also witnessed a rise of 78% in the net profit of Isfahan Mobarke Steel Co for the year ended 21st March, 2017 from IRR302 per share to IRR538 per share and it was further announced that the company has achieve a net profit of IRR298 per share representing 55% of the annual budgeted profit for the six months ended 21st September, The Managing Director of Asset Management of the Security Exchange announced that a go ahead in principle has been given to Golgohar Co ( Iron Ore Co) for raising funds worth IRR3000 billion through market by way of issuing Skuk corporate bonds. The World Steel has predicted that the demand for steel following a rise in China 's demand during 2017 will rise by 7% and will reach 1,622 billion tons. IPOs million shares of Pegah Milk Co were offered in Fara Bourse by way of a "Book Building" and reached the price of IRR 3,355 per share million shares of Kaveh South Kish Steel Co were offered by way of "Book Building" and managed to reach the price of IRR1,760 per share. 3. On Tuesday the shareholders of 99.9% of Development of Persia Oil & Gas Co worth IRR2000 billion with a net profit of IRR386 per share resolved to offer 10% of their shares to the public in the near future. 4

6 Currency Market The deputy to the head of the Security Exchange advised the Market that the first currency fund will be established within the next few weeks. This is very good news for the domestic and foreign investors alike. Mining & Base Metals Following the prospect of higher demand by China in the second half of this year we witnessed the rise of the prices of Base Metals and that of Copper reaching beyond US$7,000 per ton-at the beginning of the week standing at US$7,100 ton. The price of Iron Ore passed US$70 per ton and that of Aluminum, Lead & Zinc reached US$2,160, US$2,511 and US$3,134 per ton respectively. Oil & Energy Following the take over of Kirkuk by Iraqi military this week combined with the report by API as at 13th October, 2017 concerning a reduction of 7.1 million barrels of oil in the US stock reserves the price of Brent Oil reached above US$57 per barrel. Total Oil Co in an interview with International Daily Oil announced that even if USA withdraws from the Iran nuclear deal they will continue doing business with Iran. Currency & Gold Following the speech by President Trump this week the value of US Dollar initially declined by 0.25% against IRR reaching IRR40,000. However by the end of the week the Dollar rose to IRR40,015. In the meantime the price of Gold following the rise in the value of US Dollar fell below the psychological barrier of US$1,300 per ounce. Foreign Investments The ambassador of Norway reported that an agreement for the development of Solar energy worth 2. 5 billion euro has been signed. Macro Economy The Central Bank of Iran reported of a 9% rise in the country's liquidity against last year reaching US$340 billion. The IMF has rejected President Trump' s suggestion not to lend to Iran and has predicted a growth of 3.6% growth for this year. Moreover according to the IMF and the World Bank Iran has achieved a growth of 12.5% for the year

7 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: 6

8 Worldwide prices of oil & gas, major currencies, precious metals and basic metals Oil Unit 13/10/ /10/2017 Change% Opec Barrel/Dollar % Petrol Gallon/Dollar % Natural Gas One Million-BTU % Currency (IRR) Currency 13/10/ /10/2017 Change% Dollar Official Rate Free Market Rate 34,149 40,170 34,299 40, % 0.0% Euro 47,850 47, % Pound 53,640 53, % Precious Metal Metal Unit 13/10/ /10/2017 Change% Gold Dollar/ Ounce 1, , % Silver Dollar/ Ounce % Basic Metal Product Unit 13/10/ /10/2017 Change% Aluminum Dollar/ Tonne 2, , % Lead Dollar/ Tonne 2, , % Zinc Dollar/ Tonne 3, , % Copper Dollar/ Tonne 6, , % 7

9 3.Detailed Market information TSE TOP 5 Gainers Symbol ATIR CHAR Sector Manufacture of motor vehicles trailers and semitrailers Manufacture of motor vehicles trailers and semitrailers Company Name Iran Tractor F. Charkheshgar NSPS Manufacture of other non-metallic mineral product Pars Refract. Manufacture of structural non-refractory clay and TKSM ceramic products Takceram KRTI Manufacture of paper and paper products Iran Carton close (USD Cent) %change % % % % % TSE TOP 5 LOSERS Symbol Sector Company Name close %change (USD Cent) LEAB manufacture of chemicals and chemical products Loabiran % THSH PSIR GSBE SHPZ manufacture of chemicals and chemical products Manufacture of other non-metallic mineral product Manufacture of sugar Manufacture of food products and beverages except sugar Tehran Chemical Iran Glass Wool Sabet Khorasan W. Azar. Pegah % % % % 8

10 TSE TOP 5 VALUE LEADERS Symbol Sector FOLD Manufacture of basic metals Company Name Mobarakeh Steel close (USD Cent) Trade Value USD Million HWEB Information and communication HiWeb MSMI Manufacture of basic metals I. N. C. Ind. KRTI Manufacture of paper and paper products Iran Carton SIPA Manufacture of motor vehicles trailers and semi-trailers Saipa

11 4.Economic News Total Says to Stay in Iran If US Imposes Unilateral Sanctions Total Chief Executive Officer Patrick Pouyanne said the French oil and gas major would push ahead with its Iran gas project if the United States decided to impose unilateral sanctions on Tehran. Iran to Dispatch Workforce to Four Countries, Official Says A senior official at Iran s Ministry of Cooperative, Labor and Welfare said the country plans to send unemployed people to foreign countries, including Australia, Oman, Turkey and Tajikistan. Iran Says Supports OPEC Output Cut Extension Iranian Deputy Oil Minister for International Affairs Amir Hossein Zamaninia said Iran is ready to back a deal to extend OPEC-led production cuts through the first quarter of Iran Ready to Supply Uzbekistan s Energy Needs Iranian President Hassan Rouhani expressed the country s readiness to meet Uzbekistan s demands for energy. Norwegian Firm Signs $2.9bn Solar Deal with Iran Norway s Saga Energy has signed a 2.5 billion-euro ($2.94 billion) deal to build solar power plants in Iran, the company said. Iranian, Turkish Central Banks Ink Currency Swap Deal Governor of the Central Bank of Iran (CBI) Valiollah Seif and his Turkish counterpart, Murat Cetinkaya, signed an agreement, according to which the two countries can conduct trade transactions through using their national currencies. Turkey Common Borders to Work Round-The-Clock: VP Visiting Iranian First Vice-President Eshaq Jahangiri announced that Tehran and Ankara have agreed to further facilitate bilateral trade between the two neighboring countries through making common borders operate 24 hours a day. 10