While the Middle East’s stock markets languish in the summer heat, still unable to recover from the financial crisis, one bourse has kept on gaining – the Tehran Stock Exchange.
The TSE has gained 53 per cent so far this year – after climbing 29 per cent last year – and now has a record market capitalisation of $81bn across about 350 companies. This comes in spite of the dire state of the Iranian economy, a tightening international sanctions regime and the most severe global financial crisis in generations.
Fund managers say the stock market has primarily benefited from a lack of investment alternatives for Iranians. Property, long the most popular asset class, has struggled for two years, and falling interest rates have made bank deposits less attractive – particularly in light of high inflation.
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