ADDRESSING THE NEEDS OF INDIVIDUAL INVESTORS ADDRESSING THE NEEDS OF INDIVIDUAL INVESTORS Mofid Securities Co. Member of TSE ( Tehran Stock Exchange ) Member of IME ( Iran Mercantile Exchange ) Member of Farabourse Contact Person: Mr. Seifollahi t 009821 8190 1165 f 009821 8190 1022 e [email protected]w www.emofid.com w www.mofidkala.com IRAN MARKET REPORTER Is produced by Mofid Securities Co. Distributed electronically via email. Top Ranked 2010 The First Ranked Broker The First Ranked Broker in in 2007 2007 , , 2008 2008, , 2009 2009, , 2010 2010 Top Mutual Fund Manager in Top Mutual Fund Manager in 2009 2009 VOLUME 1 ISSUE 4 AUGUST 2011
Iran Market Reporter (IMR) is an electronic newsletter made by Research Department of Mofid Securities Company 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.
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Iran Market----------------------- Reporter
ADDRESSING THE NEEDS OF INDIVIDUAL INVESTORSADDRESSING THE NEEDS OF INDIVIDUAL INVESTORS
Mofid Securities Co.Member of TSE(Tehran Stock Exchange)Member of IME(Iran Mercantile Exchange)Member of Farabourse
Overview Market Summary 3Tehran Stock Exchange and Iran Farabourse Exchange (OTC Market) performances during August are shown in this sec-tion. While the trade value in Farabourse has increased dra-matically (87%) in compare with the last month, TSE expe-rienced a slight decrease (25%) in trade value. It seems that the month of Ramadan has affected TEDPIX and after the Eid ul-Fitr we will have a rise in the market.
Best and Worst 4Banking and investment companies were the most active groups of TSE during August, with 14 names among 20 most actives in terms of value and volume. Tejarat Bank with 43% increase marked the best performance of banking compa-nies. Index of banking companies including 10 major finan-cial companies of TSE rose by 9.5% during August.
Funds 7 Among 10 best mutual funds of August Momtaz is the only fund with large asset under management. There are 10 funds with the minimum of 50,000 units active in TSE.
News 8Crude oil transaction for the first time on the IME and IPO of Pasargad Bank were the hottest news of August. Pasargad Bank named the largest bank of TSE after its IPO with total value of uSD 24.4 million. Mofid Securities Company is leading the brokerage firms in-dustry with more than 6% of market share, reported by TSE in August.
Eid ul-Fitr Prayer in TehranAugust 1 2011 Eid ul-Fitr is a Muslim holiday that marks the end of Ramadan, the Islamic holy month of fast-ing.
Pishtaz Mutual Fund Momtaz Mutual Fund Pishro Mutual Fund
Inception date May 9, 2008 February 16, 2010 April 20, 2011
Asset under management (IR Rials) 139,988,141,328 522,274,714,685 408,661,567,462
1 Month 0.80% 1.40% 1.50%
6 Months 17.50% 16.10% 4.00%
12 Months 46.10% 42.10% 4.00%
life (Compound Return) 53.90% 60.40% 0.40%
NAV (Rial) 4,168,299 2,074,684 1,004,319
12 Months High 4,458,222 2,182,376 1,004,358
low 2,830,042 1,460,148 933,824
Here is a comparative chart between Nav of Pishtaz Fund and TEDPIX since the inception date of Pishtaz. You can see how it has outperformed the main index of TSE during the past three years.
Iran Mercantile ExchangeToal value of commodities traded on the IME in August, increased by 27% in compare with last month. Export Ring trade value also rose by 20% due to its new guest, crude oil. other groups detail are shown in the following table:
Groups of Product Value (uSD) Percent
Industrial 727,252,094 60.09%
Agricultural 3,328,170 0.27%
Oil & Petrochemical Export Ring 144,589,206 11.95%
The above graph shows the exchange rate of united States Dollar to Iran Rial during August. while uSD exchange rate rose by 0.36%, CAD decreased by 1.83%. Other currency’s rate are shown in the table.
NewsAfter 5 month of the beginning of Shamsi year,Mofid is still the leader of the marketAugust 30, 2011
On the last day of August, TSE released the list of brokerage firms regarding their trading value dur-ing last 5 months. Mofid Securities Company is the first on this list with 6.21% of total trading value among 87 brokerage firms. The total trading value of the last 5 months is around uSD 20,000 million. Mofid, also has the best market share of online trading having more than 35% of the online trades done through “mofidonline.com”. After Mofid, Nahayatnegar with 8% of trades is the second best company in online trading. You can see the summary of brokerage firms trading value from March 21, 2011 to August 22, 2011 in the following table:
Brokerage Firm
Trade Value
Online Normal Other Total
Value (uSD) Percent Value (uSD) Percent Value (uSD) Percent Value (uSD) Percent
Gold Coin Futures Transactions Volume Hits a new Record August 29, 2011
In the wake of the unprecedented welcome of the market participants and traders to the futures contracts of Bahar-e-Azadi gold coin, a new record in volume of transactions hit the market for the second time. As per report of the Public Relations and International Affairs of IME, the trading floor on Wednesday 24 August 2011, amassed with traders and the clients behind the floor, witnessed the total volume of trades in gold coin futures contracts as 13077 trades shown on the exchange screen worth 768 billion rials ( 72 million uSD).The report adds that according to the contract specification the contract size is ten coins equivalent to1/4 one troy ounce.The previous record was registered on Tuesday August 10, 2011 with total volume of 10508 trades worth 50 million uSD.
Iran Starts Crude Transaction in Kish Oil BourseAugust 20, 2011
TEHRAN (FNA)- Iran started transaction of crude in the country’s international oil bourse on the Per-sian Gulf island of Kish after the first shipment of Iranian crude oil was sold through the bourse.Mohammad Reza Khajenasiri, the chief supervisor of bourses and markets in Iran’s Bourse Organiza-tion, said that a shipment of 500,000 barrels of heavy crude oil were offered at the Kish Commodity Exchange on Thursday and were traded at $105.49 per barrel. The crude consignment was traded “without any discount or additional premium,” he stressed.Iran started fuel oil transactions in the Kish Oil Bourse early June. Some 35,000 tons of fuel oil was of-fered on the international trade hall of the Iranian Mercantile Exchange in the Persian Gulf island of Kish on the day.The base price for fuel oil was 621.35 dollar per ton and payment was made through Euro or Dirham accounts overseas under the supervision of the National Iranian Oil Company.Iran, having the world’s second largest oil and gas reserves, is trying to play a more active role in oil and petrochemical transactions in international markets. Recently Iran started offering gasoline in the Kish Island Oil Bourse.The Islamic Republic launched the first phase of the oil stock exchange on Kish Island for trade in crude and petrochemical products on February 17, 2008, and successfully managed to make the sec-ond phase operational in late 2009.
Tehran Stock Exchange: Offers Bank Pasargard (BPI) to PublicAugust 16, 2011
Trading on Bank Pasargad’s equity shares was started on Tehran Stock Exchange for first time after listing. At the first day, 122 Million equity shares of BPI (as 9th listed Bank) were traded at the price of IRR 2,106 (0.20 uSD) with the total value of IRR 257 billion (24.4 uSD million).
“Today, Pasargad Bank was listed as ninth bank in TSE. So far, 6 private banks and three state banks, including Bank Saderat, Bank Mellat and Bank Tejarat in line of privatization programs, have been offered in the Exchange” Dr. Hassan Ghalibaf Asl, CEO of TSE, stated in an inaugural ceremony.
He added, “with regard to the price of 2,106 Rials per share, the market value of BPI reached 5.7 thousand billion Rial that is the largest value in the banking industry in TSE.”
BPI is a major Iranian bank which offers retail, commercial and investment banking services. The company was established in 2005 as a part of the government’s privatization of the banking system.
While established in Tehran, the bank operates throughout the country with 2930 employees and 269 branches. The bank is currently the fastest growing bank in Iran and is the fifth largest in the country.
In 2010, The Banker Magazine rated BPI among the top “1000 banks in the world”, ranking 435th overall. The Bank is also on The Banker’s list of the top 500 Islamic financial institutions.
Tehran bourse moves towards options launchAugust 5, 2011
Iran’s bourse plans to expand its fledgling derivatives market by launching options in the coming months despite the cold shoulder traders have given to single stock futures.Tehran Stock Exchange, whose operations are limited mostly to stocks, warrants and bonds, intro-duced single stock futures in July 2010 to help diversify, vowing to add options and stock index futures as next steps in the development of the country’s capital markets.Bourse officials have promised to launch the options by October but market analysts say the intro-duction could be delayed to the end of this year.Soudabeh Einali, a senior official in the exchange’s research and development department, said
final preparations were under way to meet the deadline. Her department is in charge of regulat-ing options, which are to be approved by the Securities and Exchange Organization, which also supervises the exchange. No time frame is set for the launch of stock index futures. Traders suspect it could be next year.
IMF praises Iran on regulatory reformsAugust 3, 2011
The IMF has praised Iranian authorities for progressing financial sector reforms and improving eco-nomic indicators, despite sanctions on the country and its increasing political isolation.In a report published on Wednesday, the International Monetary Fund says Iran’s financial sector has “undergone major transformations in the last two years”. The IMF says four government-owned banks were privatized and listed on the Tehran Stock Ex-change while the Iranian central bank began supervising about 1,700 credit cooperatives.It says Iran needs to ensure its private banks have better capital adequacy ratios because of “the intrinsic volatility” of the country’s economy.The IMF says Iran has progressed corporate disclosure reforms and increased the central bank’s powers but that more still needs to be done.“It was critical that the central bank be given full autonomy to exercise its prompt enforcement powers (cease-and-desist), which are currently limited.”It says “intensified loan collection efforts” in Iran have brought the percentage of non-performing loans from 24.5 per cent of the total loan portfolio in January 2010 to 13.5 per cent in March 2011. The fund is positive about Iran’s medium-term outlook.“On the strength of high oil prices and expected efficiency gains resulting from the domestic sub-sidy reform, growth is expected to rebound to about 4.5 per cent in the medium term.”But in the same report, representatives from IMF member states have raised concerns about the im-pact of sanctions on Iran’s ability to meet payments and settlements under the international mon-etary system.The report says Iran’s main challenge is to grow its market-based economy while controlling infla-tion and maintaining stability.“large scale subsidies and inefficiencies have limited Iran’s ability to further develop its non-oil econ-omy. Iran’s total factor productivity growth has been low, and its energy-intensiveness increased in recent years.