Gmail - Iran Weekly Market Report - 3 March 2016:
"The Tehran Stock Exchange witnessed a slight change for the third consecutive week as the TSE All-Share Index closed at 77,697, 0.2% lower than last week. The main index of the Tehran Stock Exchange started the week with negative returns, losing 0.9% by Monday. It then recovered partially, adding 0.2% on Tuesday and Wednesday. The major sectors have had mixed performances but the key driver for the market’s flat performance has been the lower gains of the market leaders. This week the Automotive, Oil Products and Metallic Products sectors recorded increases of 4.6%, 4.0% and 7.0% respectively. These sectors’ average weekly gains in February 2016 have been 8.7%, 8.0% and 7.5% respectively. The IT sector’s average weekly gains have been 7.2% in February, but the sector dropped by 2% this week. The Chemical and Banking sectors, which are the largest sectors by market capitalization, have posted lower growth rates in the current week as well. The Chemical sector added only 0.5%, while the Banking sector decreased by 2.9%. The two sectors had gained 1.4% and 1.2% on average during February 2016. In contrast with these sectors, the Construction sector recorded significant improvements, adding 4.1% this week. The sector had been gaining 1.4% on average per week. Rubber & Plastics’ negative performance in February has turned to a 1.2% gain in the trading week ending March 2, 2016.
From a technical analysis perspective, the All-Share Index has been in range for three weeks, after a spike from 61,500 to 78,000. In this period, the gap between the market benchmark and its 50 day EMA has fallen to below 5%. Three weeks earlier the All-Share Index was 16% higher than its 50 day EMA. During the most recent three weeks, the index could not go higher than 78,200, and at the same time, it has also not gone below 76,600. By going beyond the 78,500 resistance level, the index will likely pick up again to reach and potentially surpass its all time high of 89,500. However with two weeks remaining to the Iranian New Year holidays, the index may not have enough time to muster its uptrend.
The TSE30 index, the index of the thirty largest companies by market capitalization, continued its minor weekly changes for the third week. The TSE30 index slipped by 0.7%, closing at 3,265, while it had added 0.5% one week earlier. Bandar Abbas Oil Refining Co. (PNBA 10.6%) rose the most among the top 30s, while Parsian Bank (BPAR -7.5%) had the weakest performance."
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