Gmail - Iran Weekly Market Report - 25 February 2016

Gmail - Iran Weekly Market Report - 25 February 2016:

"For the first time in 2016, the Tehran Stock Exchange witnessed slight declines in its share prices on a weekly basis. The TSE All-Share Index slipped by 0.06% this week, closing at 77,840. The market benchmark’s fast growth started to slow a fortnight ago, adding just 0.5% last week. Lower pace growth in the previous week has continued as 0.84% was lost in the first two trading sessions of this week and just recovered by the end of the week. Weak performances by leading sectors in the market have inhibited growth. Last week, the Oil Products sector’s 7.5% drop hindered further gains on the main index.  However, this sector had the highest growth this week with 11.1%. The two other leading sectors, Automotive (-0.1%) and Metallic Products (+1.1%) had poor re­turns in the fourth week of February. Banking (-1.0%), the sector with second largest trade volume, continued to move minimally for the second week, recording a negative performance. Bandar Abbas Oil Refinery Co. (PNBA +12.1%) and Esfahan Oil Refinery (PNES +11.0%) pulled the Oil Products sector down last week, but were the top positive movers on the sector’s index this week. The majority of banking shares had limited week­ly changes with a slight tendency to negative returns. Also Azarab Industries Co. (AZAB -7.0%) had the highest negative effect on Metallic Products sector. Iran Khodro (IKCO +0.3%) and SAIPA Group (SIPA +5.9%), the main shares in the Automotive sector, did not follow their recent solid gains this week.

 

Looking at the TSE’s main index performance from a technical analysis perspective, cur­rent conditions suggest further potential for growth. However, the index is already in the range with limited fluctuations. The Money Flow Index indicator shows the All-Share In­dex has already left the overbought area and volume has declined slightly. The trend is still upward, with a gentler slope. The 50 day EMA is still lower than the index but the dif­ference has now declined to 8%. Chart analysis also confirms the possibility of lower pace growth under the 80,000 level. However, the index first needs to surpass a re­sistance level at 78,500.

 

The Average Daily Trade Volume (ADTV) of the market reached USD 181 million, 15% higher than last week. However, the trade volume was inflated by a block trade on SAIPA Group shares. SAIPA Investment Co. (SSAP +1.2%) bought 6% of SIPA’s shares for USD 105 million. Excluding this block trade, the weekly increase of ADTV would be only 2%. The shares with the highest daily traded values were SAIPA Group, Iran Khodro, and Mellat Bank (BMLT +3.7%), recording USD 75.8, USD 57.7 and USD 50.9 million respec­tively."



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