Page 1

Iran Market

Reporter

ADDRESSING THE NEEDS OF INVESTORS

12

Volume 2 ISSUE 4 April 2012

IRAN MARKET REPORTER Is produced by Mofid Securities Co. Distributed electronically via email.

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Contents 3

Overview

5

Stock

The TSE All Share Index (TEDPIX) rose 1.4 percent in April, capping the third monthly increase in four months. There are positive developments in some critical issues specifically in foreign exchange market and management of subsidies reform.

In April, trade value and volume of TSE and Farabourse both fell compared to March. However the market kept its positive movement and stood at 26,960 at the end of month.

9

Fund April was the month of funds with small asset as 9 funds out of 10 top funds of this month have less than USD 2 Million asset under management.

13 Commodity

From this month, you can find the detail of traded commodities in the Export Ring of IME in this section. Although total value of export ring rose more than 50 percent, in domestic ring value of trades fell 16 percent.

15 News

This section provides the most important news on Iran capital market specially exchanges for the month of April.

18

Special Report The 6th International Exhibition of Exchange, Bank and Insurance was held in May 8 to 11. In this issue we tried to reflect a brief report of the event.

Mofid’s space at the 6th International Exhibition of Exchanges. This year more space (500 M2) helped us host more visitors at the event. It was a great opportunity to have a face to face contact with the large society of Mofid’s customers.

2

Iran Market Reporter No. 12 Apr 2012 ( Issue 4, Vol. 2) en.emofid.com


Overview The TSE All Share Index (TEDPIX) rose 1.4 percent in April, capping the third monthly increase in four months. There are positive developments in some critical issues specifically in foreign exchange market and management of subsidies reform. The volatility in gold and FX markets continued to fall. First, an ongoing improvement in foreign relations considerably reduced the systematic risks. Second, the supply of gold coins by the Central Bank of Iran (CBI) successfully reduced speculations not only in gold but in FX market.

TEDPIX Climbed to an All Time High TEDPIX ended this month at 26960 after climbing to an all time high of 27412 on April 16. The index returned investors 10.5 percent through the first four months of 2012. Some sectors like the Chemicals, Metallic Ores, and the Basic Metals helped pushing the TEDPIX higher while the auto makers were a drag on the index. Finally, many companies are going to hold annual meetings and make decision on dividends, so their symbols were halted from trading.

The second phase of subsidies reform is another source of uncertainty for investors. Now the horiChemicals Continue to Outperform the zon becomes clearer as the parliament steps in to define some limits and frameworks for the possible Main Sectors outcomes. The performance of the Chemicals again stood Another development is again in FX market as the ahead of other main sectors. With 9.2 percent increase in April, the index returned investors as much exports working group announced that exporters can sell their foreign currencies directly to import- as 38.7 percent in the first four months of this year. ers based on market mechanism. The decision could further reduce uncertainty regarding the effective exchange rates in companies’ financial reports.

The parliament is working on an act that for 10 years limits the price of feedstock for domestic refineries to 65 percent of prices of FOB Persian Gulf. Furthermore, the prospect for higher revenue still works in favor of the chemicals producers. The companies with domestic market benefit from rising prices. Export oriented companies are also expected to return their revenue back home comfortably as the transparency and flexibility probably improves with new mechanism of FX transactions.

Banking Sector Rebounds The index of Banks rose 0.5 percent in April as officials signaled that they may revise and ease monetary policy. After the increase in interest rates, the banks were allowed to compete on rates between 1 to 5 years; so any easing could reduce the pressure from competition. On April 18, a member of

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Iran Market Reporter No. 12 Apr 2012 ( Issue 4, Vol. 2)

3


Overview 57-6

MoďŹ dTrader 5

,Daily 2011.12.31 00:00 - 2012.05.14 00:00 (2012.05.14 14:29)

53-6

MoďŹ dTrader 5

,Daily 2011.12.31 00:00 - 2012.05.14 00:00 (2012.05.14 14:40)

339.25

242.25

334.10

239.50

328.95

236.75

323.80

234.00

318.65

231.25

313.50

228.50

308.35

225.75

303.20

223.00

298.05

220.25

292.90

217.50 214.75

287.75 ShamsiDate 0.5 Copyright 1999 - 2011, Tadbir Pardaz 1390.05.09

| 1390.05.19

| 1390.06.01

| 1390.06.14

| 1390.06.26

| 1390.07.06

| 1390.07.18

| 1390.07.30

| 1390.08.10

| 1390.08.23

| 1390.09.06

RSI(14) 66.26

|

100.00

100.00

RSI(14) 73.86

70.00

70.00

30.00

30.00

0.00

2012.03.30 00:00

31 Dec 2011

10 Jan 2012

25 Jan 2012

6 Feb 2012

19 Feb 2012

29 Feb 2012

12 Mar 2012

27 Mar 2012

10 Apr 2012

22 Apr 2012

5 May 2012

Index of Banking Sector, Daily Chart from MofidTrader5.

0.00

2012.03.30 00:00

31 Dec 2011

10 Jan 2012

25 Jan 2012

6 Feb 2012

19 Feb 2012

29 Feb 2012

12 Mar 2012

27 Mar 2012

10 Apr 2012

22 Apr 2012

5 May 2012

Index of Cement Producers, Daily Chart from MofidTrader5. The index rose well above 100 day moving averge in April.

Credit and Monetary Council (CMC) said that they may revise policies after receiving updates from the earnings estimates. Central Bank. Traders also bought shares of banks as the daily RSI of the index fell below 30 level on Other Sectors April 8; a signal that the sector may be oversold. Metal ores miners and basic metals producers also advanced as they are still among low-risk options Cement Producers Rose as Prospect in portfolio constructions. Their business models Improves are simple, they have upper hand in FX market, and most of them have little costs in dollar terms The index of cement producers rose for the second except for development. month, pushing the index above the 100 days moving average. Cement industry is a challenge Auto makers declined 7.5 percent to be a major as the costs of production are expected to rise as drag on TEDPIX. Financial report from a main a result of subsidies reforms while the sales prices auto maker came short of expectations. Producand volume are highly related to developments in ers are under pressure to raise quality. At the same housing sector and infrastructure projects. time, the increase in wages is just another challenge for this labor-intensive sector. However, the recent trend in parliament that aimed to control any increase in energy prices is Pharmaceuticals advanced 1.2 percent this month, good news for investors in energy-intensive sectors the first monthly increase this year. The sector like the Cement. In addition, the industry highly relies on imported materials so the recent developrelies on imported parts for repair and maintements could reduce uncertainty in costs estimates. nance so the stability in foreign exchange market Investors also took advantages of lower prices after and improvements in transaction mechanism are months of declines in this sector. very positive factors in reducing uncertainty in

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Iran Market Reporter No. 12 Apr 2012 ( Issue 4, Vol. 2)†en.emofid.com


Stock | Market Summary Trade Value (M USD) TSE1 Farabourse2 1Tehran Stock Exchange 

2OTC

Trade Volume (M)

Number of Trades

Number of Trading Days

1,117

4,244

388,983

20

494

847

135,186

20

Market

Tehran Stock Exchange Value of Index

High

Low

26,960 27,281 26,300 TEDPIX1 22,382 22,742 21,846 TEDPIX (FM) 36,838 36,838 35,580 TEDPIX (SM) 2 34,140 34,720 33,354 FFI 21,674 21,963 21,104 Industry Index 1,567 1,607 1,538 TEDFIX 30 1TSE Dividend & Price Index (All-share Index)  2Free Float Index

Average

Compared to Compared to last month % last year %

26,850

1.44%

9.22%

22,330

1.01%

7.61%

36,384

3.54%

18.69%

34,066

1.18%

8.00%

21,604

1.70%

13.06%

1,571

0.32%

4.05%

TEDPIX

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Iran Market Reporter No. 12 Apr 2012 ( Issue 4, Vol. 2)

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Stock | Gainers & Losers 10 Top Gainers Symbol PSHZ PKER PFRB FKHZ KSHJ BPST SKAZ SPAH TAYD ABGN

Company Shiraz Petr. Kermanshah Petr. Farabi Petr. Khouz. Steel IRI Marine Co. Post Bank Khazar Cement Sepah Investment Tidewater Abgineh

Sector Chemicals & By-products Chemicals & By-products Chemicals & By-products Basic Metals Transportation and Storage Banking Cement, Lime & plaster Investment Companies Transportation and Storage Other Non-metallic Mineral Products

Last Price

Change (%)

4,226

36.63

4,696

26.58

3,875

26.51

17,113

21.56

986

18.65

4,777

18.42

2,591

15.16

1,320

14.38

3,450

14.01

522

13.23

10 Top Losers Symbol

Company

Sector

SINA

Sina Tile

Ceramic & Tiles

PETR

Petro. Inv.

Chemicals & By-products

PIAZ

Piazar Agro

GSBE

Last Price

Change (%)

4,213

(21.85)

876

(20.65)

Food Products and Beverages

3,806

(20.43)

Sabet Khorasan

Sugar & Byproducts

4,147

(19.52)

CRBN

Iran Carbon

Chemicals & By-products

773

(16.34)

GNJN

Naghsh Jahan S

Sugar & Byproducts

12,555

(14.62)

IKCO

Iran Khodro

Motor Vehicles And Auto Parts

1,708

(12.86)

RENA

Rena Investment

Motor Vehicles And Auto Parts

1,052

(12.04)

MINO

Pars Minoo

Food Products and Beverages

1,603

(10.94)

BAHN

Bahonar Copper

Basic Metals

1,107

(10.51)

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Iran Market Reporter No. 12 Apr 2012 ( Issue 4, Vol. 2)†en.emofid.com


Stock | Most Active 10 Most Active (Value) Symbol BPAR

Company

Sector

Change (%)

Value (USD)

Parsian Bank

Banking

9.12

68,599,945

Esfahan Steel1

Basic Metals

2.18

60,699,378

GOLG

Gol-eGohar

Metal Ores Mining

5.31

38,164,213

GDIR

Ghadir Investment

Diversified Industrials (Holdings)

1.08

35,438,363

FOLD

Mobarakeh Steel

Basic Metals

(0.42)

32,366,180

KISP

Iran Kish

Computer & Related Activities

4.09

32,300,051

MSMI

I. N. Copper Ind.

Basic Metals

(1.98)

31,105,345

FKHZ

Khouz. Steel

Basic Metals

21.56

24,041,097

MADN

Metals & Mining Investment

Metal Ores Mining

8.80

23,992,377

CHML

Chadormalu

Metal Ores Mining

8.63

21,392,817

1Listed

in Farabourse

10 Most Active (Volume) Symbol

Company

Sector

Change (%)

Volume

Esfahan Steel1

Basic Metals

2.18

359,573,152

BPAR

Parsian Bank

Banking

9.12

358,137,419

SPAH

Sepah Investment

Investment Companies

14.38

197,957,959

BMLT

Mellat Bank

Banking

(0.13)

135,040,135

FOLD

Mobarakeh Steel

Basic Metals

(0.42)

122,924,734

BPAS

Pasargad Bank

Banking

(3.51)

111,669,833

GDIR

Ghadir Investment

Diversified Industrials (Holdings)

1.08

99,226,690

SIPA

Saipa

Motor Vehicles And Auto Parts

(2.05)

82,336,955

MADN

Metals & Mining Investment

Metal Ores Mining

8.80

80,686,125

BHMN

Bahman Group

Investment Companies

(5.80)

79,244,982

Iran Market Reporter No. 12 Apr 2012 ( Issue 4, Vol. 2)

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1Listed

in Farabourse

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Stock | Average P/E Highest P/E Sector Transportation and Storage

Average P/E

Market Weight

13.63

1.19%

Basic Metals

9.92

18.04%

Post and telecommunications

7.58

11.15%

Metal Ores Mining

7.45

8.33%

Refined Petroleum Products

7.22

3.17%

Lowest P/E Sector

Average P/E

Market Weight

Motor Vehicles And Auto Parts

4.05

4.40%

Technical & Engineering Services

4.34

1.61%

Diversified Industrials (Holdings)

4.65

8.57%

Cement, Lime & plaster

4.86

2.60%

Banking

4.94

18.19%

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Iran Market Reporter No. 12 Apr 2012 ( Issue 4, Vol. 2)†en.emofid.com


Fund | All Funds Overview Top 10 Best Funds of April Working Days

NAV (Rial)

384 779,055 Karafarin Bartar 815 1,832,734 Isatis 902 2,610,103 Farabi 958 1,599,994 Razavi 1,510 2,450,570 Hafez 1,440 2,431,136 Arian 272 1,075,646 Atieh Mellat 1,092 1,948,359 Bourse Bime 671 1,596,127 Day 1,510 4,023,195 Pouya 1USD to Rial exchange rate: 12,260

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Asset Under Man- Last Month Last 6 Last 12 Since Inception agement (USD)1 (%) Months (%) Months (%) (Compound Return) 1,355,220

7.10

-3.70

-24.50

-21.30

698,858

6.20

6.30

-1.70

31.30

2,152,202

5.50

13.00

3.90

47.60

588,418

5.30

9.10

-15.90

19.70

1,786,786

4.90

31.20

30.30

24.30

707,341

4.30

27.50

34.60

25.30

23,984,258

4.30

8.00

7.60

1,450,489

3.70

-10.10

-29.90

25.10

664,111

3.50

22.70

11.30

29.10

2,977,651

3.50

6.00

-3.20

40.10

Iran Market Reporter No. 12 Apr 2012 ( Issue 4, Vol. 2)

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Fund | Pishtaz Mutual Fund Commentary After a relatively strong rally in the month of March, Tehran Stock Exchange had a positive return of 1.4 percent in April. The recent rally has been supported by relatively high commodities and oil prices. Furthermore, the markets are now more optimistic about the nuclear negotiations and the political landscape ahead and that the increase in prices of energy (feed stocks) of petrochemical companies appears to be in a reasonable range. Therefore, we expect the recent rally to continue into season. Pishtaz had a return of 1 percent versus a market return of 1.44 percent. Pishro has 13 percent of funds invested in cash instruments that we expect to put to use over the next month. The portfolio selection is somewhat risk averse with positions in a mix of commodities companies, banks and telecommunication companies. Recent weaken in Rial has made the shares of these companies more attractive.

Pishtaz Mutual Fund Inception date Working Days Asset under managementM Rials 1 Month 3 Month 6 Months 12 Months Life (Compound Return) NAV (Rial) 12 Months Hight Low

May. 9, 2008 1,464 92,551 1.00% 11.20% 9.40% 8.90% 46.90% 4,736,218 4,783,727 3,953,895

Fund’s Composition Chemicals & By-products Metal Ores Mining Telecomunication

18.01

FaraBourse Basic Metals Other Industries

7.23

10

12.61 9.11 7.20 45.84

Iran Market Reporter No. 12 Apr 2012 ( Issue 4, Vol. 2)†en.emofid.com


Fund | Momtaz Mutual Fund Commentary After the stellar month of March, Tehran Stock Exchange had a positive return of 1.4 percent in April. However, Recent weaken in local currency has made the shares of commodities producers more attractive. Many major companies have had strong profits growth over the past year, but up until recently stock prices fluctuated in the seesaw pattern with little meaningful gains (largely due to noneconomic factors). At the moment the P/E ratios are quite reasonable and we can find many quality companies with P/E ratios of 4 to 6. Momtaz had a return of 1.7 percent versus a market return of 1.44 percent. Momtaz holds a wellbalanced mix of petrochemical, bank, telecommunication, steel and other commodities companies.

Fund’s Composition Metal Ores Mining Telecomunication Banking Basic Metals Chemicals & By-products Other Industries

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Momtaz Mutual Fund Inception date Working Days Asset under managementM Rials 1 Month 3 Month 6 Months 12 Months Life (Compound Return) NAV (Rial) 12 Months Hight Low

Feb. 16, 2010 816 254,846 1.70% 10.20% 10.30% 12.10% 46.40% 2,379,066 2,397,503 1,956,922

Weight 13.27 11.72 10.10 9.74 8.30 46.87

Iran Market Reporter No. 12 Apr 2012 ( Issue 4, Vol. 2)

11


Fund | Pishro Mutual Fund Commentary Pishro had a return of 2.7 percent versus a market return of 1.44 percent. Pishro was ranked 13th amongst 61 mutual funds active in the market in April. Large positions in major chemical producers and metal ore mining worked out reasonably well. We also hold a moderate position in the telecommunication sector and the basic metal segment which balances portfolio exposure to commodities prices. Iran National Copper Industry [MSMI], Khouz. Steel [FKHZ], Mobarakeh Steel [FOLD] are the main companies of Basic Metal Index. In addition, investors are now more optimistic about the nuclear negotiations ahead and that the increase in prices of energy (feed stocks) of petrochemical companies appears to be in a reasonable range.

Fund’s Composition Metal Ores Mining Chemicals & By-products Basic Metals Telecomunication Banking Other Industries 12

Pishro Mutual Fund Inception date Working Days Asset under managementM Rials 1 Month 3 Month 6 Months 12 Months Life (Compound Return) NAV (Rial) 12 Months Hight Low

Apr. 20, 2011 388 163,743 2.70% 13.70% 13.50% 16.30% 15.30% 1,181,191 1,194,928 933,824

Weight 18.98 14.15 9.61 7.41 6.57 43.28

Iran Market Reporter No. 12 Apr 2012 ( Issue 4, Vol. 2)†en.emofid.com


Commodity Iran Mercantile Exchange Summary As we see in the table of IME Transactions in April, Industrial and Mineral group has accounted for the most of transactions value, regarding they‘re all in the domestic market. 7 percent of oil and petrochemical trading value is related to the export market and specifically bitumen trades. In all, transactions value of IME has decreased 13 percent

Groups of Products

Type

Value (M Rials)

Industrial Export Ring and Mineral Domestic Ring Total

Value previous month (USD)

Value (USD)

Volume (MT)

%

Compared to last Month (USD)

970

0

79,119

200

0%

6,439,974

717,355,147

525,283,321

360,267

59%

-27%

6,440,944

717,355,147

525,362,441

360,467

59%

-27%

0

0

0

0

0%

0%

151,420

13,975,010

12,350,695

20,030

1%

-12%

151,429

13,975,010

12,350,695

20,030

1%

-12%

763,050

39,354,550

62,238,972

93,085

7%

58%

3,587,477

259,068,829

292,616,397

316,409

33%

13%

4,350,527

298,423,379

354,855,369

409,494

40%

19%

10,942,890

1,029,753,536

892,568,505

789,991

Agricultural Export Ring Domestic Ring Total Oil & Petro- Export Ring chemical Domestic Ring Total Total

compared to last month, March, mainly due to the fall in Industrial and Mineral group. The beginning of New Year, fluctuations of Dollar exchange rate in the domestic market and the outlook of market in the future by the buyers has been the main reasons of mentioned decrease in value in April.

-13%

Industrial and Mineral Agricultural Oil & Petrochemical Export Ring Oil & Petrochemical Domestic Ring

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Iran Market Reporter No. 12 Apr 2012 ( Issue 4, Vol. 2)

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Commodity Export Ring Report In April, 93,085 MT bitumen were traded in IME. Pasargad Oil Co. and Jay Oil Co. are two main producers of bitumen in Iran and they supply all their products in IME. The positive point in bitumen trades for export in IME is the variety of delivery places that make the export easier for Trading Companies. The fluctuations of prices

Pasargad Oil Co.1

1

Volume Range of Prices (MT) 210

625 $

3

22,175

630 $ - 680 $

4

1,500

800 $

5

1,000

730 $

5,500

630 $ - 670 $

47,000

630 $ - 670 $

3,000

780 $ - 800 $

1,400

630 $ - 680 $

700

675 $

300

650 $

800

650 $- 680 $

6,000

650 $- 680 $

6 7 8 9 10 11 12 13

Co.2

Jay Oil Refining Corous Energy Co. Zarrin Bam Shargh Co. Akam Co. Azar Bam Ayegh kar Co. Isogam Tabriz Co. Negin Fakhr Azar. Co.

1 1. 2. 3. 4.

Pasargad Oil Co: Minimum quantity of Purchase: 20 MT Premium for LC =3 $/MT Loading Period = During 40 calendar days after settlement Premium for Bitumen at Tehran, transported in Drums to Bandar Abbas (FOB)= + 120 $/MT 5. Discounts for Bulk Purchases which can be loaded During 40 days: 0 $/MT for the quantities between 1 MT and 2,000 MT 3 $/MT for the quantities between 2,200 MT and 3,000 MT 5 $/MT for the quantities between 3,300 MT and 5,000 MT 7 $/MT for the quantities between 5,400 MT and 7,000 MT 10 $/MT for the quantities between 7,600 MT and 10,000 MT

14

FCA Arak FCA Tabriz FCA Tehran FOB B. Abbas Port FOB Boushehr FCA Shiraz Exw Isfahan FOB Bandar Abbas Exw Mashad Exw

Delivery Date During 40 days

15 days after settlement

Free

2

Bulk

625 $- 680 $

Bitumen 60/70

3,500

Delivery Place

Destination

Producer/Supplier

Form

Commodity

N.

have been because of Dollar exchange rate in the domestic market, and elasticity of prices. First the prices increased up to the maximum price in the table then due to little demand in the market, prices reached the minimum prices. We should also point out to Vacuum Bottom (VB) prices as an effective factor in bitumen prices in IME.

Immediate

Exw Jolfa

15 $/MT for the quantities between 10,600 MT and 15,000 MT 20 $/MT for the quantities more than 15,700 MT

6. Discounts for the customers who purchase and load quantaties as below during next 6 months: 10 $/MT for the quantities between 90,000 MT and 120,000 MT 15 $/MT for the quantities more than 120,500 MT

2. 1. 2. 3.

Jay Oil Refining Co: Minimum quantity of Purchase: 200 MT Delivery Date = 15 days after settlement Premium: 90 $ for Drum Packing and 15 $ for the bitumen 40/50

Iran Market Reporter No. 12 Apr 2012 ( Issue 4, Vol. 2)†en.emofid.com


News Development of the ICT Infrastructures April 29, 2012 Source: IME.co.ir

Indicating the necessity to develop the infrastructures of the exchange ICT ushering in the best mechanization of trading operation, Dr. Panahian, President of IME, said : “important efforts have been made in this regard including creation and installation of Online Order Placing, development and completion of the Multi-commodity/ Multi-asset trading system, introducing the IME Dynamic Monitoring System (SAMPAK), expansion of nation-wide connectivity infrastructure for trading, developing the standards for the security of information transmission and transaction space, providing the access to online trading for the futures contracts and introducing the Multi-banking system.

Revitalizing the risk management tools: In his remarks the exchange CEO pointed to the actions carried out regarding strengthening the derivatives and risk management and indicated: “the trading by law of futures has been revised and presented to the regulator of the market for ratification. For good measure, the bylaw for the option trading has been drafted. He referred to the amendments made to the bylaw for the buy-in market in futures contracts as another improving effort to facilitate smooth transactions in the future market. “We have been mulling over optimization of margining and collateral management process which has been reviewed and finalized for the moment “told Panahian.

Iran’s Oil Bourse to stand as pricing Reference for the Oil Products in the Region April 23, 2012 Source: IME.co.ir

“Iran will become the price maker and reference of the region in the near future” said the vice president of the Islamic Republic of Iran. Speaking at the 17th international exhibition of the oil industry Dr. Rahimi said: “accordingly I would invite all interested Iranian and foreign investors to take part in the enormous projects of purchase, storage and sale of the oil products. He regarded the inauguration of oil bourse last summer as one of outstanding achievements of the oil, gas and petrochemical industry and voiced: “within the short period from the inception of the oil exchange, oil and petrochemical products have accounted for large portion of the volume of the

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contracts traded on the IME platform in rial, the national currency. “Financing the oil projects through application of the new financial instruments, public offering of the oil of other oil producing countries and the last but not the least, inking mutual cooperation contracts between foreign exchanges and IME would be high on the agenda of the exchange so Iran would become pricing reference in the region for the oil products accordingly. Indicating that the Islamic Republic of Iran ranks first among energy producers enjoying about 11 percent of the petroleum and 17 percent of gas reserves of the world, Dr. Rahimi said: It’s crystal

Iran Market Reporter No. 12 Apr 2012 ( Issue 4, Vol. 2)

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News clear that I.R. of Iran would stand as one of the world’s largest producers of energy products in future and this enormous reservoir would ensure

procurement of the feedstock and energy required by the domestic industry and that of foreign countries at competitive price for decades.

The value of IME Transactions: 7 percent of GDP April 22, 2012 Source: IME.co.ir

Dr. Panahian, the IME president, in a press conference told: “the total value of the trades in IME within the year 2010 was 3 percent of the gross domestic production (GDP) of the nation which mount to 7 percent in 2011 mainly as a result of the expansion of futures contracts as a modern financial instrument 141% growth of the IME trades value Elsewhere in his interview, Dr. Panahian referred to 141 percent rise in the value of IME transactions last year (ended 20 of March). Briefing on the last year performance of the bourse he added: “in this year 20 million and 350 thousand tons of various listed commodities in different trading categories of industrial, petrochemi-

cal and agricultural products as well as precious metals and oil were traded in IME reaching 3.02 billion US in value and accounted for 50% of the total capital market transactions value during the same period. According to the IME President and CEO the volume and value of 2011 trading has increased by 20 and 141 percent respectively in compare to the year 2010. Much of the surge in the market performance comes from development of derivatives across the market. “The volume of Gold coin futures contract trading in 2011 reached 1/919/000 contracts amounting to 1.31 billion US in value “ Panahian was quoted as saying.

Gold Coin Futures, Hitting Record for the second Consecutive Day April 18, 2012 Source: IME.co.ir

For the second consecutive day as of the beginning of the year the future contract transaction volume hit the record in the IME derivatives trading session. Reported by the information dissemination department of the exchange (IME Newsroom), 19277 contracts were traded by the market participants bringing the value of the transaction of the said volume to 70 million USD.

For good measure, traders traded 4291 contracts of July. Gold coin futures contract is one of the most active and highly traded derivatives contracts of IME interested to investors in the market.

Yesterday, the market participants traded 14359 contracts of June maturity, the report indicated. 16

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News 20% Rise in the Monthly Volume of Trades April 17, 2012 Source: IME.co.ir

With the trade of 2.075 Million tons of all kinds of petrochemicals, agricultural and industrial products in the IME the value of trades in March 2012 reached to more than 1.83 Billion USD. According to the report released by the exchange newsroom, a comparison between the mentioned month and the same period last year shows a 21% decrease in the volume of trade but on the other hand it also marked a 20% increase in the value of trade. The report adds: in the March the trade volume in IME industrial and minerals ring has reached to 1.252 Million tons which shows a 34% decrease comparing to the previous month.

However the trade value of this ring soared to 1.20 Billion USD which shows a 21 percent rise in compare with the previous month. In this period the transaction of all products, metallurgical coke, steel and concentrates experienced a slight increase. On the other hand, in the ring of the petrochemical products, the volume and value of trades in March has increased by 4% and 18% respectively. Moreover, in the agricultural ring of IME within the March, the volume and the value of the trades experienced 10% and 4% positive change respectively.

Tehran Stock Exchange 1ST Q 2012 Statistical Report April 9, 2012

Source: TSE.ir

The total index (TEDPIX) of Tehran Stock Exchange (TSE) closed at 26,576.2 point at the end of March 2012, which was 8.9 percent higher than the beginning of the year’’s value. TSE’’s blue-chip index (TEDFIX 30) also gained 5.4 percent in the previous quarter and closed at 1,561.6 point. Three new firms have been listed at the Exchange since the beginning of 2012, turning the total number of listed companies to 342 at the end of March 2012.

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TSE’’s entire equity market capitalization stood at IRR 1,315,706 billion, increasing about 10 percent over the quarter. The total trading value and volume at the equity market rose about 33 and 29 percent, respectively, comparing with the 4TH Q 2011. About 18.7 billion shares and rights were traded in the first quarter of 2012 at the total value of IRR 56,956 billion. These were executed in more than 1.3 million transactions, which were 17.4 percent over the number of trades in the previous quarter.

Iran Market Reporter No. 12 Apr 2012 ( Issue 4, Vol. 2)

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Special Report 6th International Exhibition of Exchange, Bank and Insurance By: Press TV

See: http://www.presstv.ir/detail/240245.html

While stock markets in the EU are plummeting due to the global economic meltdown, Iran says that the performance of its capital market has been a success. During the past six years Tehran’s permanent international fairground has hosted a number of exhibitions dedicated to Investment and finance. This year the event has kicked off as the 6th International Exhibition of Exchange, Bank and Insurance. During the inauguration ceremony Iran’s minister of economy stressed on the development of financial services as a priority for Iran’s economy. According to the international monetary fund, Iran has the 17th largest economy in the world. During the past decade Iranians have become familiar with new ways of making money. Stock, commodity and over the counter exchange have become more popular than ever before.

Many regard Tehran’s International exhibition on Exchange, Bank and Insurance as the biggest finance industry and investment event in the Middle East. This year the four day venue brings together more than 250 companies from Iran and 8 other countries that introduce their services to the Iranian Market. According to Iran’s ministry of economy the Islamic Republic needs some 1.1 trillion dollars to be invested during the fifth five-year economic development plan that ends in 2015, in order to materialize an 8-percent growth rate. Iran says that the domestic sources have the potential to meet around 56 percent of the required sum and the rest should be provided through foreign investment. Experts believe that a fair share of the required amount could be obtained through further development of the country’s capital market.

Mifod’s team at the 6th International Exhibition of Exchange, Bank & Insurance – May 11, 2012

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Iran Market Reporter No. 12 Apr 2012 ( Issue 4, Vol. 2) en.emofid.com


About Mofid Mofid Securities Company is the leading brokerage firm mainly active in Iran Capital Market. Mofid creates financial products and offers financial services to its clients and investors. Having a qualified and diverse management team enables Mofid to benefit from coupling local knowledge and presence with global expertise. Mofid publishes this newsletter, Iran Market Reporter (IMR), in order to keep its readers updated on the latest news and events of Iran capital market, especially Tehran Stock Exchange (TSE), as well as valuable information for individual and institutional investors. Iran Market Reporter is distributed exclusively via email or hard copy amongst Iranian analysts and potential investors who have worked closely or have been in contact with Mofid Securities Company. Subscription to this newsletter is by referral only or through an online request sent to: imr@emofid.com

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Iran Market Reporter No. 12 Apr 2012 ( Issue 4, Vol. 2)

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Disclaimer This material is for information purposes only and does not constitute an offer to sell nor a solicitation of an offer to buy any specific securities. All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, MOFID SECURITIES COMPANY accepts no liability whatsoever for any loss or damage resulting from errors, inaccuracies or omissions affecting any part of the publication. All information is provided without warranty, and MOFID SECURITIES COMPANY makes no representation of warranty of any kind as to the accuracy or completeness of any information hereto contained. This publication does not provide individually tailored investment advice and may not match the financial circumstances of some of its recipients. The securities discussed in this publication may not be suitable for all investors. The value of an investment can go down as well as up. Past performance is no guarantee of future success.

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IMR12  

Iran Market Reporter (IMR) is an electronic newsletter made by Research Department of Mofid Securities Company in order to keep its readers...

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