Tehran Stocks Rally as Government Raises Funds for Virus Fight - Bloomberg

Tehran Stocks Rally as Government Raises Funds for Virus Fight - Bloomberg:

Stocks in Iran have rallied to record highs after the government announced plans to sell about $2 billion worth of state assets to raise money for the fight against the coronavirus epidemic.

The Tehran Stock Exchange’s main index of shares rose 2.5% to 623,276 points, driven mostly by industrial shares such as petrochemical producers, steel companies and banks. The index has climbed 30% since Feb. 19, when Iran reported its first confirmed cases of the virus.

With about 4,500 reported dead and more than 70,000 infected, Iran is the Middle East’s epicenter of the disease. Its ability to respond has been hampered by U.S. sanctions that have crippled its economy. On Saturday, President Hassan Rouhani instructed the Minister of Economy and Financial Affairs to expedite plans to sell stakes in a range of state-owned companies and assets on the stock exchange to bolster the country’s coffers.

Over the past two weeks Rouhani has announced about $10 billion worth of measures to support lower-income families, the healthcare system and businesses struggling with the impact of the virus. As infection rates start to flatten, the government relaxed some social distancing rules to allow most government employees to get back to work.