Iran Capital. Market Insight

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Annabelle Johns
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1 Iran Capital Market Insight April 2018

2 4/22/2017 4/30/2017 5/8/2017 5/16/2017 5/24/2017 6/1/2017 6/9/2017 6/17/2017 6/25/2017 7/3/2017 7/11/2017 7/19/2017 7/27/2017 8/4/2017 8/12/2017 8/20/2017 8/28/2017 9/5/2017 9/13/2017 9/21/2017 9/29/ /7/ /15/ /23/ /31/ /8/ /16/ /24/ /2/ /10/ /18/ /26/2017 1/3/2018 1/11/2018 1/19/2018 1/27/2018 2/4/2018 2/12/2018 2/20/2018 2/28/2018 3/8/2018 3/16/2018 3/24/2018 4/1/2018 4/9/2018 4/17/2018 Capital Market Indices The end of month figure of Iran capital market major indices including the TSE's (TEDPIX) and the IFB's total return index (IFX) is compared with that of the previous month in Table 1. Table 1: Capital Market Indices Index April 2018 March 2018 Change (%) TEDPIX 95,524 96, % IFX 1,064 1,097-3 % The past year trend of the indices is illustrated in the following figure. Figure 1: Major Indices 101,000 97,000 93,000 89,000 85,000 1,200 1,150 1,100 1,050 1, , , , TEDPIX - (Left Axis) IFB - (Right Axis) Iran Capital Market Insight 3

3 4/22/2017 5/2/2017 5/12/2017 5/22/2017 6/1/2017 6/11/2017 6/21/2017 7/1/2017 7/11/2017 7/21/2017 7/31/2017 8/10/2017 8/20/2017 8/30/2017 9/9/2017 9/19/2017 9/29/ /9/ /19/ /29/ /8/ /18/ /28/ /8/ /18/ /28/2017 1/7/2018 1/17/2018 1/27/2018 2/6/2018 2/16/2018 2/26/2018 3/8/2018 3/18/2018 3/28/2018 4/7/2018 4/17/2018 In addition, the performance (annual return in percent) of TEDPIX is compared with MSCI Emerging Market TRI and S&P/OIC COMCEC 50 SHARIAH TRI. Figure 2: TEDPIX, MSCI, COMCEC Annual Returns in a Window 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% MSCI Emerging Market TRI: The index includes securities from 23 countries; however, excludes stocks from emerging and frontier economies. COMCEC: The S&P/OIC COMCEC 50 Shariah is designed to provide investors with a Shariah-compliant benchmark that measures the performance of leading companies from the Organization of Islamic Cooperation (OIC) member states. TSE and IFB Market Capitalization tri MSCI COMCEC Share of the IFB and the TSE market capitalization in comparision with end of March is demonstrated below. The IFB is younger and smaller; yet, has differentiated itself in hosting state-of-the-art financial instruments. Figure 3: TSE and IFB Market Capitalization Comparison Apr-18 3,799,030 1,497,420 Mar-18 3,822,857 1,465, ,500,000 3,000,000 4,500,000 6,000,000 Billion Rials Tehran Stock Exchange (TSE) Iran Fara Bourse (IFB) Iran Capital Market Insight 4

Industries Market Capitalization Tehran Stock Exchange The break-down of top industries' market capitalization in the IFB and the TSE is

6% others, 16.3% Manufacture of chemical products, 21.9% Computer and related activities, 3.9% Multidisciplinary industrial activities, 6.

0% Manufacture of coke, refined petroleum products and nuclear fuel, 8.

2% Manufacture of food products and beverages 1.3% Real estate activities 1.5% Electricity, gas, steam and steam supply 2.

4 Industries Market Capitalization Tehran Stock Exchange The break-down of top industries' market capitalization in the IFB and the TSE is depicted in the next two figures. FIGURE 4: TSE TOP 10 INDUSTRIES Manufacture of pharmaceuticals, 3.1% Automotive and manufacturing parts, 3.6% others, 16.3% Manufacture of chemical products, 21.9% Computer and related activities, 3.9% Multidisciplinary industrial activities, 6.1% Manufacture of basic metals, 14.3% Banking and financial institutions, 6.8% Mining of metal ores, 7.3% Post and telecommunications, 8.0% Manufacture of coke, refined petroleum products and nuclear fuel, 8.7% Iran Fara Bourse FIGURE 5: IFB TOP 10 INDUSTRIES Manufacture of chemical products 22.9% others 44.3% Industrial contracting 1.2% Manufacture of food products and beverages 1.3% Real estate activities 1.5% Electricity, gas, steam and steam supply 2.7% Insurance and pension funding, except compulsory social security 2.8% Manufacture of basic metals 9.6% Banking and financial institutions 7.6% Manufacture of coke, refined petroleum products and nuclear fuel 3.1% Investment 3.0% Iran Capital Market Insight 5

5 Exchanges' Trading Statistics Value and volume of trades for each exchange is depicted in the following table. Table 2: Value and Volume of Trades for Each Exchange Exchange Date TSE IFB IME IRENEX Trading Volume - Million Shares Trading Value - Billion Rials Trading Volume - Million Shares Trading Value - Billion Rials Trading Volume - Tonne Trading Value - Billion Rials Trading Value - Billion Rials Total Trading Value (Billion Rials) April ,792 20,934 2,611 27,568 1,493,020 33,696 5,042 87,240 Iran Capital Market Insight 6

6 Instruments' Trading Statistics Trading value and volume of each instrument is depicted in the following figures. Figure 7: Trading Value and Volume of Each Instrument Stocks Sukuk Trading Value (Billion Rials) 2,813 6% 1 0% 22,035 45% Trading Volume (Million Stocks) % 0% % Derivatives 23,653 49% Exchange Traded Funds (ETFs) 12, % Commodity Markets Trading Statistics Figure 8: IME Trade Value of Different Groups Apr Mar 0 10,000 20,000 30,000 40,000 50,000 60,000 Billion Rials Iran Capital Market Insight 7

7 Figure 9: IRENEX Trade Value of Different Groups Apr Mar Billion Rials Share of Institutional and Individual Investors in Trading Value Figure 10 reveals the proportion of individual and institutional investors in total market trading value. Figure 10: Investors' Proportion in Trade Value of Four Exchanges Individual 14,947 Billion Rials 31% Institutional 69% 33,555 Billion Rials Iran Capital Market Insight 8

8 Institutional and Individual Transactions Institutional and Individual contribution for each catogery of instruments is demonstrated in the following figure. Figure 11: Investors Trading Value of Securities 100% 90% 42.7% 68.3% 48.3% 80% 70% 60% 94.0% 50% 40% 57.3% 51.7% 31.7% 6.0% Stocks ETFs Sukuk Derivatives Share of Individual transactions value Share of Institutional transactions value 30% 20% 10% 0% Figure 12: Comparing of Institutional and Individual Transactions Based on Markets Stocks Comparing of Institutional transactions based on markets 0.00% Comparing of Individual transactions based on markets 5.98% 9.56% 0.00% ETFs 28.05% Sukuk Derivatives 66.23% 5.72% 84.46% Iran Capital Market Insight 9

Sukuk Outstanding Sukuk The outstanding value of each Islamic securities (sukuk) is

It is noteworthy that all instruments in the Iran capital market are Shariah compliant.

Governmental Musharaka 13.5% 22.4% Governmental Ijarah Sukuk 5.

Manfaat Musharaka Securities Issued Municipalities Sukuk Issued by Corporations 7.0% 36.

7% Number of Listed and Unlisted Companies Number of listed and registered companies on

9 Sukuk Outstanding Sukuk The outstanding value of each Islamic securities (sukuk) is presented in the following figure. It is noteworthy that all instruments in the Iran capital market are Shariah compliant. Figure 13: Outstanding Value of Each Type of Sukuk Amounting 713,615 Billion Rials Governmental Musharaka 13.5% 22.4% Governmental Ijarah Sukuk 5.0% Governmental Salam Governmental Murabahah Sukuk Islamic Treasury Bills Governmental Manfaat Musharaka Securities Issued Municipalities Sukuk Issued by Corporations 7.0% 36.4% 8.0% 6.9% 0.7% Number of Listed and Unlisted Companies Number of listed and registered companies on the TSE and the IFB are presented in the following table. Table 3: Number of Listed and Registered Companies on TSE and IFB April 2018 Listed Companies in the TSE Listed Companies in the IFB Unlisted Companies in the IFB Iran Capital Market Insight 10

10 Initial Public Offerings The detail of IPOs in the TSE and the IFB is shown in the following table. Table 4: detail of IPOs Exchange Industry Company Name Ticker No.Shares Offering Date IFB Investment Adak Ind. & BSNS AIBP 870,000,000 3/26/2018 Iran Capital Market Insight 11

11 Iran Capital Market Insight 12

Iran Capital. Market Insight

Iran Capital. Market Insight Iran Capital Market Insight June 2018 6/24/2017 7/2/2017 7/10/2017 7/18/2017 7/26/2017 8/3/2017 8/11/2017 8/19/2017 8/27/2017 9/4/2017 9/12/2017 9/20/2017 9/28/2017 10/6/2017 10/14/2017 10/22/2017 10/30/2017