Reporting "Asre Bazar", the TSE’s main index saw 1.5% growth last week but negative returns in Oil Products (-4.2%) and Transportation & Logistics (-6.9%) shrank this week’s gain. Islamic of Republic of Iran Shipping Lines (KSHJ -7.09%) affected the Transportation & Logistics’ sector the most, while lower prices for Esfahan Oil Refining Co. (PNES -5.80%) and Bandar Abbas Oil Refining Co. (PNBA -3.20%) were the main negative drivers on the Oil Products’ index. The top performing sectors at the start of November were IT (+4.60%) and Utility Service Providers (+4.50%) which recorded the highest weekly growth on the TSE. Asan Pardakht Co. (APPE +14.55%), the newly listed e-payments company, was the main driver behind the IT sector’s rise for the second consecutive week. The positive uptick in the Utility Service Providers sector came on the back of increases seen at Fajr Petrochemical Co. (BFJR +5.78%) and Mobin Petrochemical Co. (MOBN +3.64%). Like the All-Share Index, the top 30s overall index continued to grow, albeit at a slower pace. The TSE30 index, the index of the thirty largest companies by market capitalization, closed at 3,236, a 0.3% increase from last week. Iran Transfo Corp. (TRNS +5.89%) continued to rise and was marked as the top performing stock in the top 30s. In contrast, Esfahan Oil Refining Co. (PNES -5.80%) was the weakest on the TSE30 index.
The Average Daily Trade Volume (ADTV) dropped by 17% to reach USD 62 million. Some experts believe the lower trade volume of equities on the TSE is related to investor concerns around global politics. According to some market analysts, there is a temporary risk aversion in the market ahead of the US presidential elections on November 8. This week, the stocks with the highest weekly traded value were Asan Pardakht Co. (APPE +14.55%), Azarab Industries Co. (AZAB +2.84%) and Iran Khodro (IKCO -2.52%), recording USD 23 million, USD 15 million and USD 6.7 million worth of trades respectively.
Iran Fara Bourse:
On the Iran Fara Bourse (IFB) market, the overall index went up by 1.7% to close at 842. The IFB’s ADTV fell by 54% to USD 40 million. The most popular securities on the IFB this week were equities and USD 99 million worth of trades were recorded.
Foreign Exchange Market:
In the FX market, the Central Bank of Iran added 0.1% to the official US Dollar rate, announcing it to be IRR 31,796. On the free market, the US Dollar was sold at IRR 36,167, a 0.1% increase on last week. The US Dollar free market rate is gradually moving up towards January levels when it was moving between IRR 36,500 to IRR 36,900. This week, the CBI also increased the official rate of the Euro by 2.1%, quoting it at 35,349, while its free market rate nudged up by 0.2% to IRR 39,908. The official rate of British Pound Sterling was increased by the CBI to 1.1%, reaching IRR 39,211. On the free market, GBPIRR’s rate stood at 44,750, 0.4% higher than last week.
Iran Vehicle Manufacturers Association (IVMA) released its latest production volume report this week covering the first seven months of the Iranian Calendar Year starting March 21, 2016. According to the report, 691,427 vehicles were produced in the period amounting to 26% year-on-year growth. Passenger cars recorded the highest annual increase and the highest production figures. According to IVMA, 638,599 passenger cars were produced this year, a 27% increase on last year. Iran Khodro (IKCO) is still the dominant automobile producer with total manufactured cars standing at 343,480. However, the company’s production growth has only increased 20% since last year, which is almost half of the growth rate that its main competitor SAIPA Group (SIPA) has seen. Peugeot cars represent the bulk of the country’s total production with 230,897 vehicles or almost 33% of total production. Iran Khodro, the producer of Peugeot cars, has seen 19% higher production of Peugeot cars, mostly on the back of higher production volumes of the Peugeot 206. This year, IKCO has increased the production volumes of this car by 33% to 78,360.