Sunday 6 October 2019

#Iran’s stock market outstrips global rivals | Financial Times

Iran’s stock market outstrips global rivals | Financial Times:

The stock market of Iran, for a long time dogged by US sanctions, has notched up a notable achievement: ranking among the world’s best performing over the past 12 months, as domestic investors seek refuge from rampant inflation.

A collapse in the rial against the dollar has triggered a huge spike in prices, with the official inflation rate at almost 43 per cent in the year to September. Banks’ interest rates have not kept up, which analysts say has pushed Iranians into stocks to protect the value of their savings.

This has triggered a big rally for the Tehran bourse, which had sold off in the final quarter of 2018 on fears of military conflict and economic stagnation. It is now up 73 per cent in local currency terms over the past 12 months, outpacing any other global equity market tracked by Bloomberg.

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