Iranian stock market in fast recovery - The National Newspaper

Iranian stock market in fast recovery - The National Newspaper

When most people think of the Iranian economy, they think of UN sanctions and the potential development of nuclear power. But a stock market boom?

One is well under way. The main index for the Tehran Stock Exchange (TSE) last month reached its highest level in its 42-year history and last week exchange officials issued a statement to reassure investors they are not in the middle of a market bubble.

“Concerns about bubble growth are unfounded,” Ali Sahraie, the operations manager of the TSE, said in a statement released by the bourse. “The reason for the rise in the index is the flow of cash into the stock market.” Mr Sahraie said the sharp ascent was a reflection of the overall improvement of Iran’s economy, and many outside observers agree.

“Even though [the market] is rallying I still think of it as underperforming,” said Ahmad Alanani, a trader with Exotix, a company based in London that specialises in frontier markets.