Iran Market

ADDRESSING THE NEEDS OF INDIVIDUAL INVESTORS

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

----------------------- Reporter

VOluME 1 ISSuE 4 AuGuST 2011

Top Ranked 2010

The First Ranked Broker in 2007, 2008, 2009, 2010 2007, 2008, 2009, Top Mutual Fund Manager in 2009

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 seifollahi@emofid.com w www.emofid.com w www.mofidkala.com

Overview
Market Summary
Tehran Stock Exchange and Iran Farabourse Exchange (OTC Market) performances during August are shown in this section. While the trade value in Farabourse has increased dramatically (87%) in compare with the last month, TSE experienced 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

Banking 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 companies. Index of banking companies including 10 major financial companies of TSE rose by 9.5% during August.

Funds

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

Crude 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 industry with more than 6% of market share, reported by TSE in August.

Eid ul-Fitr Prayer in Tehran August 1 2011 Eid ul-Fitr is a Muslim holiday that marks the end of Ramadan, the Islamic holy month of fasting.

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Iran Market Reporter No. 4 August 2011 ( Issue 4, Vol. 1 )

Stock | Market Summery

Trade Value (M USD) TSE* Farabourse**
* Tehran Stock Exchange ** OTC Market

Trade Volume (M)

7,796 3,841

Number of Trades
391,334 158,026

Number of Trading Days

21 21

1,867.56 1,097

Tehran Stock Exchange (As of August 30)

Value of Index TEDPIX* TEDPIX (FM) TEDPIX (SM) FFI** Industry Index
25,822 21,985 30,890 33,822 19,679

High
25,822 21,985 30,890 33,822 19,679

low
24,597 20,912 29,613 31,916 18,770

Average Compared Compared to Compared to to last last Month (%) last year % month % (In uSD Terms)
25,215 21,464 30,215 32,878 19,246 2.83% 2.58% 4.70% 3.96% 1.49% 2.46% 2.21% 4.33% 3.59% 1.13% 43.95% 48.53% 22.38% 48.47% 43.83%

* TSE Dividend & Price Index (All-share Index) ** Free Float Index

TEDPIX
26000 25800 25600 25400 25200 25000 24800 24600 24400 24200 24000 23800

01/08/201 1

02/08/201 1

03/08/201 1

04/08/201 1

05/08/201 1

06/08/201 1

07/08/201 1

08/08/201 1

09/08/201 1

10/08/201 1

11/08/201 1

12/08/201 1

13/08/201 1

14/08/201 1

15/08/201 1

16/08/201 1

17/08/201 1

18/08/201 1

19/08/201 1

20/08/201 1

21/08/201 1

22/08/201 1

23/08/201 1

24/08/201 1

25/08/201 1

26/08/201 1

27/08/201 1

28/08/201 1

29/08/201 1

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Iran Market Reporter No. 4 August 2011 ( Issue 4, Vol. 1 )

30/08/201 1

Stock | Best and Worst

10 Top Gainers
Company Bafgh Mining Neyshabour S. Marjan Kar Iran Mn Mines Yazd Fold Tejarat Bank Nirou Moharreke Marvdasht Sugar Shirin Khorasan EN Bank last Price (Rial)
30,001 4,145 7,103 8,775 2,536 2,223 1,377 12,224 2,739 4,030

Change (%)
88.27 68.77 56.35 52.82 47.61 43.21 35.92 34.71 33.54 32.92

10 Top Losers
Company Sadid Group Asia Bime Tidewater Iran Transfo Margarin Rena Investment Iran Kh. A. M Herbicides Prod Karoon Cement Piazar Agro last Price (Rial)
1,373 3,713 2,696 6,024 1,405 2,201 667 3,564 2,314 3,995

Change (%)
(16.53) (15.23) (13.87) (13.61) (11.47) (10.42) (10.23) (9.73) (8.72) (8.33)

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Iran Market Reporter No. 4 August 2011 ( Issue 4, Vol. 1 )

Stock | Best and Worst

10 Most Active (Value)
Company Saderat Bank Pasargad Bank Buali Inv. Mobarakeh Steel Khavarmiane Mine -R Karafarin Bank Saipa Inv. Shahed Inv. Iran Tele Co. Iran Transfo Change (%)
4.01 6.84 4.66 9.78 0 2.91 11.08 -31.03 -0.51 -6.38

Value (uSD)
204,234,541 191,687,451 109,588,505 100,123,896 96,408,318 84,434,273 79,486,773 55,919,048 48,982,250 43,776,146

10 Most Active (Volume)

Company Buali Inv. Saderat Bank Pasargad Bank Khavarmiane Mine -R Arian e-Bank -R Mobarakeh Steel Day Bank Karafarin Bank Saipa Inv. Shahed Inv. Change (%)
4.66 4.01 6.84 0 -8.71 9.78 11.24 2.91 11.08 -31.03

Volume
1,110,274,025 1,097,662,361 907,047,789 500,000,000 371,373,467 354,443,440 342,222,166 336,505,730 288,523,370 269,640,488

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Iran Market Reporter No. 4 August 2011 ( Issue 4, Vol. 1 )

Stock | Best and Worst

Highest P/E*
Company Khouz Steel Gol-E-Gohar Mobarakeh Steel Chadormalu Iran Tele Co. National Iranian Copper (I.N.C Ind) Iran Mobile Tele Omid Inv. Mng Mellat Bank EN Bank *Filtered by companies with more than 1% of market cap last Price (Rial)
8,064 6,604 3,198 6,378 3,252 4,972 45,892 3,848 2,333 3,977

P/E
12.78 11.39 10.84 9.75 9.59 8.94 8.21 8.17 7.99 7.94

Percent of Market Cap

1.21 2.72 5.67 2.63 10.25 5.93 6.51 2.64 2.57 2.19

Lowest P/E*
Company Saipa Pension Fund Isf. Oil Ref. Co. Khark Petr Mapna Ghadir Inv. Parsian Bank Saderat Bank Iran Khodro Tejarat Bank *Filtered by companies with more than 1% of market cap lastPprice (Rial)
2,205 2,589 4,110 17,157 2,765 4,003 3,391 1,696 3,286 1,917

P/E
4.01 5.31 5.65 5.7 5.92 6.02 6.26 6.4 6.46 6.85

Percent of Market Cap

1.58 1.28 1.18 1.18 1.9 3.3 2.56 2.35 1.42 2.31

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Iran Market Reporter No. 4 August 2011 ( Issue 4, Vol. 1 )

Fund | All Funds Overview

Top 10 Best Funds (Regarding return rate)
Working Days NAV (Rial) Asset Under Management (M USD)*
15,187,335 4,679,962 7,725,898 3,945,558 11,675,803 7,106,238 49,364,367 13,231,380 2,569,471 1,379,868

Last Month Last 6 Months Last 12 Since Inception (%) (%) Months (%) (Compound Return)
-0.6 -0.1 -2.2 1.1 0.6 -1.3 1.4 0.8 -1.1 -0.4 2.8 0.8 16 13.3 15.4 16.3 11.6 14.7 16.1 17.5 22.5 21.1 19 12.6 46.5 51.4 47.8 81.9 36.7 29.6 42.1 46.1 30.5 47.8 44 30.1 65.8 65.7 64.7 63.1 61.6 60.4 60.4 53.9 53.3 52.3

777 2,932,898 Boursiran 502 2,002,438 Ganjineh Bahman 650 2,431,833 Farabi 535 2,048,098 Novin 1122 4,376,379 Agah 1211 4,790,653 Melli 564 2,074,684 Momtaz** 1212 4,168,299 Pishtaz** 1229 4,216,717 Sahm Ashena 657 2,132,831 Amin Karafarin TEDPIX All Funds Index*** * uSD to Rial exchange rate: 10,580
85 75 65 55 45 35 25 15 5 -5

** Managed by Mofid

*** Including 60 Funds

Boursiran

Ganjineh Bahman

Farabi

Novin

Agah

Melli

Momtaz

Pishtaz

Sahm Ashena

Amin Karafarin

TEDPIX

All Funds Index

Since Inception (Compound Return)

last 12 Month (%)

last 6 Month (%)

last Month (%)

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Iran Market Reporter No. 4 August 2011 ( Issue 4, Vol. 1 )

Fund | Mofid Funds Summary

Pishtaz Mutual Fund Inception date Asset under management (IR Rials) 1 Month 6 Months 12 Months life (Compound Return) NAV (Rial) High 12 Months low
May 9, 2008 139,988,141,328 0.80% 17.50% 46.10% 53.90% 4,168,299 4,458,222 2,830,042

Momtaz Mutual Fund

February 16, 2010 522,274,714,685 1.40% 16.10% 42.10% 60.40% 2,074,684 2,182,376 1,460,148

Pishro Mutual Fund

April 20, 2011 408,661,567,462 1.50% 4.00% 4.00% 0.40% 1,004,319 1,004,358 933,824

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.
Rebased to 100

500 450 400 350 300 250 200 150 100 50

07/07/2011 07/05/2011 07/03/2011 07/01/2011 07/11/2010 07/09/2010 07/07/2010 07/05/2010 07/03/2010 07/01/2010 07/11/2009 07/09/2009 07/07/2009 07/05/2009 07/03/2009 07/01/2009 07/11/2008 07/09/2008 07/07/2008 07/05/2008

TEDPIX

Pishtaz (NAV)

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Iran Market Reporter No. 4 August 2011 ( Issue 4, Vol. 1 )

Commodity | Summary
Iran Mercantile Exchange
Toal 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 Industrial Agricultural Oil & Petrochemical Mineral Total Value (uSD)
727,252,094 3,328,170

Percent
60.09% 0.27% 11.95% 27.69% 0.00% 100%

Export Ring Domestic Ring

144,589,206 335,107,536 0 1,210,277,007

0.00%

Industrial Agricultural Oil & Petrochemical Export Ring Ring

27.69%

11.95%

60.09%

0.27%

Mineral

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Iran Market Reporter No. 4 August 2011 ( Issue 4, Vol. 1 )

Commodity | Summary
In the following figure you can see the market share of brokerage firms active in the IME regarding their trading value in August.

Brokerage Firm Market Share (%)

Sepehr Bastan 17% Khobregan Mobin Sarmaye Bahonar 10% 3% 3% 4% 5% 7% 7% 8% Seavolexkala Kala Khavarmiane 10% Shahr Tosee Saderat Bank Hafez

26%

Iranian Rial Exchange Rate

Code uSD GBP CHF AED KWD JPY100 HKD OMR CAD TRY QAR SAR Currency
united States Dollar Pound Sterling Swiss Franc
uAE Dirham

(As of August 30, 2011)

USD to IRR
10,600 10,590 10,580 10,570 10,560 10,550 10,540 10,530 10,520 10,510 10,500

in Rial
10,580 17,349 12,931 2,881 38,884 13,768 1,358 27,479 10,833 6,112 2,906 2,821

Compared to Last Month (%)

0.36% 0.23% -3.64% 0.38% 0.78% 0.25% 0.37% 0.37% -1.83% -2.10% 0.38% 0.36%

Kuwaiti Dinar Japanese Yen Hong Kong Dollar Omani Rial Canadian Dollar Turkish lira Qatar Riyal Saudi Riyal

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 currencys rate are shown in the table.

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Iran Market Reporter No. 4 August 2011 ( Issue 4, Vol. 1 )

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News
After 5 month of the beginning of Shamsi year,
August 30, 2011

Mofid is still the leader of the market

On the last day of August, TSE released the list of brokerage firms regarding their trading value during 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 Value (uSD) Percent Normal Value (uSD)
750,834,121 392,857,656 1,007,930,718 526,855,388 409,735,539 146,991,304 467,690,076 636,458,034 538,364,461 304,976,181 10,592,357,278 15,775,050,756

Other Percent Value (uSD)

150,665,406 693,231,285 8,222,968 351,167,202 459,460,302 689,644,329 286,879,112 0 51,517,958 247,552,268 377,376,843 3,315,717,675

Total Percent Value (uSD)

1,246,678,828 1,090,097,259 1,032,515,501 878,045,652 876,385,633 836,637,524 769,996,314 715,980,340 590,204,159 577,314,367 11,449,714,272 20,063,569,849

Percent

Mofid Behgozin Kaspian Khobregan Hafez Rahnama Saderat Bank Nahayatnegar Mellat Bank Bahman Other Total

345,179,395 4,008,318 16,361,815 23,157 7,189,792 1,890 15,427,221 79,522,306 321,739 24,785,917 479,979,868 972,801,418

35.48% 0.41% 1.68% 0.00% 0.74% 0.00% 1.59% 8.17% 0.03% 2.55% 49.34% 100%

4.76% 2.49% 6.39% 3.34% 2.60% 0.93% 2.96% 4.03% 3.41% 1.93% 67.15% 100%

4.54% 20.91% 0.25% 10.59% 13.86% 20.80% 8.65% 0.00% 1.55% 7.47% 11.38% 100%

6.21% 5.43% 5.15% 4.38% 4.37% 4.17% 3.84% 3.57% 2.94% 2.88% 57.07% 100%

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Iran Market Reporter No. 4 August 2011 ( Issue 4, Vol. 1 )

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News |
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 Bourse

August 20, 2011 TEHRAN (FNA)- Iran started transaction of crude in the countrys international oil bourse on the Persian 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 Irans Bourse Organization, 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 offered 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 worlds 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 second phase operational in late 2009. www.emofid.com Iran Market Reporter No. 4 August 2011 ( Issue 4, Vol. 1 )
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News |
Tehran Stock Exchange: Offers Bank Pasargard (BPI) to Public
August 16, 2011 Trading on Bank Pasargads 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 governments 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 Bankers list of the top 500 Islamic financial institutions.

Tehran bourse moves towards options launch

August 5, 2011 Irans 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, introduced 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 countrys capital markets. Bourse officials have promised to launch the options by October but market analysts say the introduction could be delayed to the end of this year. Soudabeh Einali, a senior official in the exchanges research and development department, said www.emofid.com Iran Market Reporter No. 4 August 2011 ( Issue 4, Vol. 1 )
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News |
final preparations were under way to meet the deadline. Her department is in charge of regulating 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 reforms

August 3, 2011 The IMF has praised Iranian authorities for progressing financial sector reforms and improving economic indicators, despite sanctions on the country and its increasing political isolation. In a report published on Wednesday, the International Monetary Fund says Irans 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 Exchange 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 countrys economy. The IMF says Iran has progressed corporate disclosure reforms and increased the central banks 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 Irans medium-term outlook. On the strength of high oil prices and expected efficiency gains resulting from the domestic subsidy 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 impact of sanctions on Irans ability to meet payments and settlements under the international monetary system. The report says Irans main challenge is to grow its market-based economy while controlling inflation and maintaining stability. large scale subsidies and inefficiencies have limited Irans ability to further develop its non-oil economy. Irans total factor productivity growth has been low, and its energy-intensiveness increased in recent years.

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Iran Market Reporter No. 4 August 2011 ( Issue 4, Vol. 1 )

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