Defying global slump, Iran stocks soar on sanctions relief
DUBAI - A leap by the Tehran stock market in the past four weeks contrasts with gloom in many bourses around the world and hints at Iran's investment potential as its economy, long isolated by sanctions, rejoins the global trading system.
The TEDPIX index has soared 18.3 percent since Jan. 16, when the sanctions were lifted after an international deal on Iran's nuclear program. Average daily trading turnover has tripled from last year to around $150 million.
The economy is still struggling - growth is close to zero, the jobless rate exceeds 10 percent and many banks face mountains of bad debt. Political tensions between hardliners and moderates could slow efforts to address these problems.
As a result, some commentators are warning that the notoriously volatile market may not hold on to its gains.
"The Tehran bourse is disregarding warnings and the condition of world markets ... It is going down the same road as in 2015, the result of which will only be a lack of confidence and the flight of capital from this market," the conservative Nassim news agency said in a commentary last week.
