Iran Market Reporter 05

Iran Market----------------------- Reporter

ADDRESSING THE NEEDS OF INVESTORSADDRESSING THE NEEDS OF INVESTORS

Mofid Securities Co.Member of TSE(Tehran Stock Exchange)Member of IME(Iran Mercantile Exchange)Member of Farabourse

Contact Person: Mr. Seifollahit 009821 8190 1165f 009821 8190 1022e [email protected] www.emofid.comw www.mofidkala.com

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

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VOluME 1ISSuE 5SEPTEMbER 20115

2www.emofid.com Iran Market Reporter No. 5 Sep 2011 ( Issue 5, Vol. 1)

Contents3 Overview

Global financial turmoil did not have a huge impact on TSE All Share Index (TEDPIX) during September. However TEDPIX could not continue its prior raising trend due to the deteriorating effects of the global market crisis.

6 StockDuring September TEDPIX marked 27,000 for the first time in its history. Even though it could only sustain its position for a few days, TEDPIX is once again aiming 27,000 for the next month.

10 FundPishtaz, Momtaz, Pishro –all three funds are managed by Mofid- where among top ten funds of September regarding their returns. Due to the delicate situ-ation of global and domestic market Mofid’s asset managers have tried to use all possible investment opportuni-ties of market in order to boost Mofid’s funds performances.

12 Commodity200,000 tons of Iron ore were traded for the first time in the Export Ring of the IME in September with the aver-age price of USD 113.5 and set a new record for the IME trading floor.

13 NewsMofidTrader5 a new Mofid’s online trading software lunched at September 15th at the opening of the 5th special-ized exhibition of bourse, bank, insur-ance and privatization. From now on Mofid’s customers can use both Mo-fidTrader5 and Mofid Online to trade on TSE and OTC. Future contracts of TSE and IME will be soon available on MT5 as well.

Mofid’s booth at the 5th specialized exhibition of bourse, bank, insurance and privatization; September 15, 2011


OverviewBalanced Shocks Help TSE Weathering the September StromIn September 2011, the all share index of the Tehran Stock Exchange (TEDPIX) grew at the rate of 3.76 percent from the prior month. The growth, especially in some specific sectors, still seems acceptable, considering the huge headwinds the market faced, from both the domestic and the international sources, which raised the uncertainties to an uncomfortable level.

TSE Reactions to the Global Financial TurmoilFrom the international level, the deepening debt crisis in Europe and the deterioration of the global economic outlook, mostly found its way to the Iranian market through the sharp fall of the energy and commodities prices.

As it might be expected, sectors like the Base Metals, Metallic Ores, and the Chemicals absorbed most of the consequences. How-ever, the size of this impact was considerably limited as another shock worked in favor of these mostly export-oriented sectors: the sharp rise of the unofficial exchange rate of the USD against the Rial.

High Volatility in the Exchange RatesFor the month of September, the USD rose 6.4 percent against the Rial in the unofficial for-eign exchange market while the official rate was raised by only 1.71 percent at the same period.

Reaching the price of 13000 Rial per 1 USD, the spread between the official and the unof-

ficial rate widened to as much as 2239 Rial on Sep 28, before the CBI (Central Bank of Iran) started to inject millions of dollars in the fol-lowing week to reduce the gap and to calm the market participants.

Although the volatility raised the uncer-tainty about the future of the CBI policies, the rising USD had contradictory effects on many TSE listed companies. Some export oriented ones, like the Chemicals, were better posi-tioned to benefit from the strength of the dollar, but some others, the ones relying on imported materials were negatively affected.

Base MetalsWith market capitalization of 21 billions of dollars, this sector represents more than 14 percent of the TSE All Share Index (TEDPIX).

In Base Metals, com-panies like the National

Chemicals and Base Metals Resist, Metallic Ores Falls


Iranian Copper Industries Co. (NICIC) with the market cap of USD 8.0 billion - almost 39 percent of the Base Metals Index – were hit by the sharp decline in the global prices of the industrial metals.

However the negative impact was interest-ingly limited. The NICIC share price fell just 2.1 percent in September while the copper prices fell as much as 24 percent globally in the same period, reflecting the opposite forces explained earlier.

On the other hand, steel producers like Mobarakeh Steel - the main Iranian steel producer with the Market cap of USD 7.6 bil-lion - benefited from good performance and the speculations about the increase in their domestic sales prices.

Mobarakeh steel, in addition to the two other main steel producers, Khoozestan Steel and Khorasan Steel, make up to 52 percent of

the Base Metals index and their performance contributed to the increase of the index in September. Nevertheless, the NICIC share price decline limited the increase to 1.4 per-cent.

Metallic OresThe Metallic Ores Index fell as much as 4.5 percent in September, as the decline in com-modities prices and the negative outlook for the demand finally forced investors to reduce their earnings expectations for the compa-nies like Gol-E-Gohar or Chadormalu – the two dominant iron ore producers with total market cap of USD 7.3 billion, representing 6 percent of the TEDPIX.

Regarding the dollar effect, one should remember that the Chadormalu, in contrast to the Gol-E-Gohar, lacks the earnings from exports while the Gol-E-Gohar itself is experi-encing an increase in the expenditures be-cause of its very dollar-intensive development plans.

ChemicalsWith 6.4 percent increase through Septem-ber, the Chemicals had the best performance among these three sectors, as the global price decline for their products were more limited in comparison to the Minerals.

In addition and as another advantage, many companies in the Chemicals, like Kharg Pet-rochemicals -a main methanol producer- sell most of their products to the overseas, and more importantly they operate close to the unofficial exchange rate, so they were better

Overview


positioned to benefit from the increase in the exchange rate of the dollar.

BankingUntil mid September, with the growing speculations about the increase in the interest rates, the banking sector initially experienced the increase in share prices. But it didn’t last as the unfortunate news of the huge embezzle-ment battered the domestic financial markets.

The consequences put the future of the management of some involved-banks in question. In response, the investors sold the banks’ shares to reduce their exposure to the core of the uncertainty at least in the short term.

Considering that most of the bad news is already priced, the Banking sector is still 0.3 percent up for September.

CementThe Cement index rose as much as 8 percent in September, one of the best performances in the TSE’s sectors, as the 15 percent increase in the domestic sales price of the cement

positively affected the earnings estimates in the companies’ reports.

VehiclesThe 0.8 percent increase in the index was the result of a balance between two opposite forces.

From one hand, the news of the agreement between the government and the producers for the increase in the sale prices positively affected the outlook for car makers like SAIPA, IKCO, and Bahman Group – three companies with the highest market cap in the Vehicles index.

But on the other hand, the strength of the USD raised the questions about the profitabil-ity of a sector that is still considerably relying on imported parts and raw materials.

SugarAmong the TSE Top 10 Gainers, four com-panies came from the Sugar industry, as the news of the subsidies removal from the sugar prices helped the domestic producers to experience higher-than-average gains in their share prices.

Marvdasht Sugar [GMRO1] share price grew more than 9 folds in September while the Sa-bet Korasan [GSBE1] and the Shirin Khorasan [GSHI1] – the two sugar producers located in East of Iran – experienced 175 and 156 per-cent increase in their share prices respectively.

Overview


Stock | Market Summary

Trade Value (M USD) Trade Volume (M) Number of Trades Number of Trading Days

TSE1 1,291.09 5,079 386,575 19

Farabourse2 432.27 1,159 123,829 191Tehran Stock Exchange 2OTC Market

Tehran Stock Exchange

Value of Index

High Low Average Compared to last month %

Compared to last month %(in USD Term)

Compared to last year %

TEDPIX1 26,793 27,100 26,083 26,764 3.76% 2.01% 44.55%

TEDPIX (FM)2 22,824 23,100 22,219 22,799 3.82% 2.07% 48.52%

TEDPIX (SM)3 31,905 32,246 31,076 31,883 3.29% 1.55% 25.14%

FFI4 34,841 35,596 34,266 35,008 3.01% 1.28% 48.03%

Industry Index 20,446 20,748 19,808 20,459 3.90% 2.15% 44.91%1TSE Dividend & Price Index (All-share Index) 2First Market 3Second Market 4Free Float Index

TEDPIX


Stock | Gainers & Losers

10 Top Gainers

Company Last Price Change (%)

Marvdasht Sugar 10,163 930.73

Lorestan Sugar 17,049 795.9

Pars Pamchal 7,112 433.53

Sepah Inv. -R 471 309.57

Balast 16,251 274.62

Post Bank 6,881 198.91

Sabet Khorasan 2,784 175.37

Shirin Khorasan 3,831 156.6

Iran Tractor Forging 3,067 144.19

Shiraz Petr. 2,912 140.07

10 Top Losers

Company Last Price Change (%)

W. Azar. Pegah 1,260 -83.30

Arian E.Bank -R 325 -74.67

Khavar Spring -R 100 -66.44

Sadid Pipe 1,432 -62.36

Alumtek 1,960 -62.21

National Iranian Leak and Zinc Company (N.I.L.Z.) 1,876 -60.09

Iran Tractor M. 1,919 -59.74

Pars Int. Mfg. 1,950 -57.21

Ghazvin Glass 1,179 -57.11

Alborz Bimeh 3,331 -56.48


10 Most Active (Value)

Company Change (%) Value (M USD)

Iran Mobile Tele. Co. 37.67 1,477

Parsian Bank 27.50 901

Iran Tele. Co. 48.69 767

Iranian National Copper (I.N.C Ind) -36.69 744

Mobarakeh Steel 7.96 703

Saipa -12.27 657

Ghadir Inv. 21.29 629

Pardis PC 58.12 576

Mapna -37.26 501

Bahman Group 1.04 499

10 Most Active (Volume)

Company Change (%) Volume (M Share)

Parsian Bank 27.50 2,961

Iran Tele. Co. 48.69 2,667

Saipa -12.27 2,624

Mobarakeh Steel 7.96 2,577

Bahman Group 1.04 2,053

SADRA -30.98 1,879

Saderat Bank 11.28 1,730

Saipa Inv. 88.90 1,665

Ghadir Inv. 21.29 1,626

Karafarin Bank -26.42 1,576

Stock | Most Active


The following table shows weighted average P/E (calculated according to the market cap.) of the mojor sectors of TSE. These sectors are selected among more than 40 sectors of stocks in the TSE.

Average P/E of these 14 major sectors is 8.37 while other sections marked the average P/E of 7.21 which made the total market average P/E 8.07 by the last day of September.

Sector Average P/E Percent of Market Cap.

Basic Metals 10.44 14.45

Banking 7.20 13.47

Post and telecommunications 10.19 10.66

Diversified Industrials (Holdings) 6.72 7.91

Metal Ores Mining 10.28 6.70

Motor Vehicles And Auto Parts 5.60 4.85

Chemicals & By-products 8.10 3.36

Cement, Lime & plaster 5.15 2.30

Pharmaceuticals 8.58 2.19

Investment Companies 6.93 2.13

Refined Petroleum Products 7.14 1.96

Technical & Engineering Services 5.95 1.88

Real Estate And Construction 5.57 1.06

Computer & Related Activities 9.68 0.96

Other 7.21 26.12

Total 8.07 100

Stock | Average P/E


Top 10 Best Funds (Regarding return rate)

Working Days

NAV(Rial)

Asset Under Man-agement (USD)1

Last Month (%)

Last 6 Months (%)

Last 12 Months (%)

Since Inception (Compound Return)

Firouzeh 412 1,393,849 3,309,172 7.1 8.3 30.1 34.2

Bourse24 517 1,467,738 861,909 7.1 -5.2 35.2 31.1

Tejarat Bank 1,146 2,554,634 1,852,151 6.6 18 51.9 34.8

Pishtaz2 1,240 4,404,766 11,235,201 5.7 7 50.3 54.9

Boursiran 805 3,099,007 15,357,402 5.6 8.4 48.8 67

Momtaz2 592 2,190,537 48,891,274 5.6 7.3 45.4 62.2

Hafez 1,286 1,922,490 1,925,750 5.6 6.5 30.5 20.4

Tadbirgar Sarmaye

208 1,180,862 1,156,026 5.5 15.4 -- 18.1

Pouya 1,286 4,058,559 7,585,355 5.3 0.4 33.6 48.8

Pishro2 164 1,057,632 35,657,188 5.3 -- -- 5.8

TEDPIX 4.6 9.4 44.5

All Funds Index3

3.4 7.4 31.7

1USD to Rial exchange rate: 10,761 2Managed by Mofid 3Including 60 Funds

Fund | All Funds Overview


Pishtaz Mutual Fund Momtaz Mutual Fund Pishro Mutual Fund

Inception date May 9, 2008 February 16, 2010

April 20, 2011

Asset under management (Billions of Rials) 121 526 384

Asset under management (M USD) 11 49 36

1 Month 5.70% 5.60% 5.30%

3 Month 7.00% 7.30% 7.70%

6 Months 7.00% 7.30% 5.80%

12 Months 50.30% 45.40% 5.80%

Life (Compound Return) 54.90% 62.20% 5.80%

NAV (Rial) 4,404,766 2,190,537 1,057,632

Fund | Mofid Funds Summary

Comparative chart between Nav of Pishtaz and Momtaz since a year ago.

Pishro (NAV) last two month


Commodity | Exchange Rate

Iranian Rial Exchange Rate (As of September 30)1

Code Currency in IRR Compared toLast Month (%)

USD United States Dollar 10,761 1.71%

GBP Pound Sterling 16,812 -3.10%

CHF Swiss Franc 11,970 -7.43%

AED United Arab Emirates Dirham 2,929 1.67%

KWD Kuwaiti Dinar 38,871 -0.03%

JPY100 Japanese Yen 14,055 2.08%

HKD Hong Kong Dollar 1,380 1.62%

OMR Omani Rial 27,941 1.68%

CAD Canadian Dollar 10,500 -3.07%

TRY Turkish Lira 5,816 -4.84%

QAR Qatar Riyal 2,955 1.69%

SAR Saudi Riyal 2,869 1.70%

BHD Bahrain Dinar 28,536 1.69%

CNY Chinese Yuan 1,684 1.51%

MYR Malaysian ringgit 3,399 -4.17%

EUR Euro 14,596 -4.94%1Official rates according to Central Bank of Iran (CBI)


NewsEnergy bourse operational by year endSeptember 30, 2011

Iran Daily: Energy Bourse Company will be launched by December 21, announced man-aging director of Iran Power Network Man-agement Company.

Mirfattah Fattah-Qarahbagh put the total value of stocks pertaining to the proposed company at 200 billion rials ($20 million), 80 percent of which, or 160 billion Rials ($16 million), have so far been sold as Initial Public Offering (IPOs), Mehr News Agency reported.

This amount of IPO pertains to monetary and banking institutes as well as power-relat-ed firms, he pointed out.

Close to 20 percent of the stocks will be listed for public prior to the formation of the “energy bourse company”, he said.

He listed creating healthy competition, entrepreneurship, liberalizing the prices and affecting positively on power finance as the major benefits of launching the proposed bourse.

Mofid to Introduce “MofidTrader5” September 18, 2011

Mofid - International Dep.: The 5th special-ized exhibition of bourse, bank, insurance and privatization held on September 15th to 18th at the Tehran Permanent International Fair-ground.

Over 150 firms including 15 public and private banks, 50 brokers, 45 bourse and non-bourse companies (listed and un-listed in the Tehran Stock Exchange), insurance

firms, investment companies and educating institutes, showcased their achievements and

Licensed and Customized MetaTrader 5


Newsoffering their services during the event.

Mofid Securities Company as the leading company in brokerage services introduced ‘MofidTrader5’ under license of MetaQuotes Software Corp. to Iranian investors commu-nity.

MofidTrader5 will provide Mofid’s custom-ers with the latest online trading tools avail-

able on MetaTrader5 which is designed for Forex, stocks, futures and CFDs.

Mofid brought online trading to Iranian market, introducing “Mofid Online” in 2010. Tadbir Pardaz, a subsidiary of Mofid, designed the Mofid Online software and managed to run it for more than 25 brokerage firms until today.

TSE, sole positive stock exchange worldwide September 15, 2011

Tehran Times: Tehran Stock Exchange was the only one globally with positive result in the past six months, the president of the TSE an-nounced Wednesday.Hassan Ghalibaf-Asl in his speech at the inauguration ceremony of the fifth Stock Exchange, Banking system and Insurance said TSE showed in the period 16% efficiency, Fars news agency reported.“The total value of TSE assets was $32 bn in 1996 it however rose by 4.5 fold and is cur-rently about $120 bn,” he added. The value of traded shares between March 21 and today was about $12 bn rising from $11bn dur-ing the same period a year ago, Ghalibaf-Asl stated.TSE Index is at the moment around 26800 points and shows in the recent time only an uptrend and is for local investors a real bull market.Since Iranian economy is uncoupled from the international market due widespread

sanctions, there was no index crash as it was noticed in most stock markets worldwide.

Documents

Iran Market Reporter 05