Iran Capital Market Insight - en.seo.ir

Iran Capital

Market Insight

February 2018

Iran Capital Market Insight 3

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

Change (%) January 2018

February 2018

Index

-0.68% 98,817 98,149 TEDPIX

1.36% 1,084 1,098 IFX

The past year trend of the indices is illustrated in the following figure.

800

850

900

950

1,000

1,050

1,100

1,150

72,000

76,000

80,000

84,000

88,000

92,000

96,000

100,000

2/19

/201

7

2/27

/201

7

3/7/

201

7

3/15

/201

7

3/23

/201

7

3/31

/201

7

4/8/

201

7

4/16

/201

7

4/24

/201

7

5/2/

201

7

5/10

/201

7

5/18

/201

7

5/26

/201

7

6/3/

201

7

6/11

/201

7

6/19

/201

7

6/27

/201

7

7/5/

201

7

7/13

/201

7

7/21

/201

7

7/29

/201

7

8/6/

201

7

8/14

/201

7

8/22

/201

7

8/30

/201

7

9/7/

201

7

9/15

/201

7

9/23

/201

7

10/1

/201

7

10/9

/201

7

10/1

7/2

017

10/2

5/2

017

11/2

/201

7

11/1

0/2

017

11/1

8/2

017

11/2

6/2

017

12/4

/201

7

12/1

2/2

017

12/2

0/2

017

12/2

8/2

017

1/5/

201

8

1/13

/201

8

1/21

/201

8

1/29

/201

8

2/6/

201

8

2/14

/201

8

Figure 1: Major Indices

TEDPIX - (Left Axis) IFB - (Right Axis)


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.

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

Share of the IFB and the TSE market capitalization in comparision with end of January is demonstrated below. The IFB is younger and smaller; yet, has differentiated itself in hosting state-of-the-art financial instruments.

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2/1

9/2

01

7

3/1

/20

17

3/1

1/2

01

7

3/2

1/2

01

7

3/3

1/2

01

7

4/1

0/2

01

7

4/2

0/2

01

7

4/3

0/2

01

7

5/1

0/2

01

7

5/2

0/2

01

7

5/3

0/2

01

7

6/9

/20

17

6/1

9/2

01

7

6/2

9/2

01

7

7/9

/20

17

7/1

9/2

01

7

7/2

9/2

01

7

8/8

/20

17

8/1

8/2

01

7

8/2

8/2

01

7

9/7

/20

17

9/1

7/2

01

7

9/2

7/2

01

7

10

/7/2

01

7

10

/17

/20

17

10

/27

/20

17

11

/6/2

01

7

11

/16

/20

17

11

/26

/20

17

12

/6/2

01

7

12

/16

/20

17

12

/26

/20

17

1/5

/20

18

1/1

5/2

01

8

1/2

5/2

01

8

2/4

/20

18

2/1

4/2

01

8

Figure 2: TEDPIX, MSCI, COMCEC Annual Returns in a Window

TEDPIX MSCI COMCEC

3,939,532

3,911,113

1,253,977

1,359,293

0 1,500,000 3,000,000 4,500,000 6,000,000

Jan-18

Feb-18

Billion Rials

Figure 3: TSE and IFB Market Capitalization Comparison

Tehran Stock Exchange (TSE) Iran Fara Bourse (IFB)

https://en.wikipedia.org/wiki/Security_(finance)


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.

Iran Fara Bourse

Manufacture of chemical products,

22.0%

Manufacture of basic metals , 14.1%

Manufacture of coke, refined petroleum

products and nuclear fuel, 8.9%

Post and telecommunications,

7.8%

Banking and financial institutions, 7.4%

Mining of metal ores, 6.7%

Multidisciplinary industrial activities,

6.4%

Automotive and manufacturing parts,

3.9%

Computer and related activities ,

3.6%

Manufacture of pharmaceuticals,

2.9%

others, 16.300%

FIGURE 4: TSE TOP 10 INDUSTRIES

Manufacture of chemical products

25.2%

Manufacture of basic metals 11.2%

Banking and financial institutions

8.4%

Manufacture of coke, refined petroleum products and nuclear

fuel3.8%

Electricity, gas, steam and steam supply

3.1%

Investment3.1%

Insurance and pension funding, except compulsory social security

2.8%

Real estate activities1.7%

Manufacture of pharmaceuticals

1.3%

Manufacture of food products and beverages

1.4%

others38.00%

FIGURE 5: IFB TOP 10 INDUSTRIES


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

Date Exchange

February 2018

22,511 Trading Volume - Million Shares TSE

63,053 Trading Value - Billion Rials

7,347 Trading Volume - Million Shares IFB


2,555,597 Trading Volume - Tonne IME


13,801 Trading Value - Billion Rials IRENEX

178,186 Total Trading Value (Billion Rials)


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

Commodity Markets Trading Statistics

0 10,000 20,000 30,000 40,000 50,000 60,000

Figure 8: IME Trade Value of Different Groups Feb

Jan

Billion Rials

29,017.6 97%

35.30%

0.20%

804.13%

Trading Volume (Million Stocks)

67,23663%

33,09631%

110%

6,1726%

Trading Value (Billion Rials)

Stocks

Sukuk

Derivatives

Exchange Traded Funds(ETFs)


Share of Institutional and Individual Investors in Trading Value

Figure 10 reveals the proportion of individual and institutional investors in total market

trading value.

0 2000 4000 6000 8000 10000 12000 14000

Figure 9: IRENEX Trade Value of Different Groups Feb

Jan

Billion Rials

69.98%

30.02%

Figure 10: Investors' Proportion in Trade Value of Four Exchanges

Institutional

74,593 Billion Rials

Individual

31,976 Billion Rials


Institutional and Individual Transactions

Institutional and Individual contribution for each catogery of instruments is demonstrated in

the following figure.

Figure 12: Comparing of Institutional and Individual Transactions Based on Markets

43.7%

25.8%

3.0% 4.2%

56.3%

74.2%

97.0% 95.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Stocks ETFs Sukuk Derivatives

Figure 11: Investors Trading Value of Securities

Share of Individual transactions value Share of Institutional transactions value

91.89%

4.97%3.14% 0.00%

Comparing of Individual transactions based on

markets

50.78%

6.15%

43.05%

0.01%

Comparing of Institutional transactions based on

markets

Stocks

ETFs

Sukuk

Derivatives


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.

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

February 2018

325 Listed Companies in the TSE

96 Listed Companies in the IFB

160 Unlisted Companies in the IFB

11.8%

9.6%

1.0%

11.3%

44.6%

9.7%

11.9%

Governmental Musharaka

Governmental Ijarah Sukuk

Governmental Salam

Governmental Murabahah Sukuk

Islamic Treasury Bills

Musharaka Securities IssuedMunicipalities

Sukuk Issued by Corporations

Figure 13: Outstanding Value of Each Type of Sukuk Amounting 508,555 Billion Rials


Initial Public Offerings The detail of IPOs in the TSE and the IFB is shown in the following table.

Table 4: detail of IPOs

Offering Date

No.Shares Ticker Company Name Industry Exchange

2/6/2018 1,000,000,000 SHOY Behshahr Ind Manufacture of

chemical products TSE

2/7/2018 2,500,000,000 HSIP Hekmat Saba Ins

Insurance and

pension funding,

except compulsory

social security

IFB

2/17/2018 143,488,000 MFMP Man-madeFibres

MFR

Manufacture of

chemical products IFB

1/22/2018 3,570,979,000 POIP Polyacryl Iran Manufacture of

chemical products IFB

Iran Capital Market Insight - en.seo.ir

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