Iranian share prices have rallied 40 percent in the past four months, at odds with the country's deteriorating economic fundamentals under the weight of sanctions and raising the risk of a stock market bubble, analysts say.
While a weak currency, high unemployment and double-digit inflation are contributing to a contraction in the Iranian economy as Western sanctions crimp the country's energy and banking sectors, some listed companies are benefiting as a sharp currency devaluation has made them much more competitive.
That is boosting the share prices of companies like Sina Chemical Industries, up 145 percent since October, and Abadan Petrochemical Co., up 18 percent in that time.
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