Tedpix index, 2 years. Source: Tehran Stock Exchange
Iranian investors’ concerns over the future of nuclear negotiations with the world powers, added to falling oil prices, have caused further falls in shares prices on the Tehran Stock Exchange.
The bourse’s main index, the Tedpix, closed at 66,902 on Wednesday – the last working day this week – about 11 per cent down from its 75,949 points on November 24, when investors expected the nuclear negotiators to yield results, particularly an easing of international sanctions over Tehran’s nuclear programme. Read more
Many Iranians have expressed disappointment that their national currency, the rial, did not strengthen over the weekend in response to the historic phone call between Iran’s president Hassan Rouhani and Barack Obama.
The reason the currency market did not reflect the public mood, analysts believe, is because the central bank is determined to curb a currency crisis and shield the market against political news in order to encourage investment, domestic production and non-oil exports. Read more
Iranian shoppers are getting used to constantly rising prices, especially – and most worryingly – prices of basic commodities. Inflation over the past year has added to feelings of insecurity. Butter, for example, is increasingly scarce in Tehran and, where available, its price has doubled in the past few weeks, from 11,000 rials ($0.44) for 100 grammes to 22,000 rials. Read more
For the past few months the Tehran Stock Exchange has looked like a green island surrounded by lava flows. State-run media have boasted of growth unprecedented in the bourse’s 46-year history, as the main index, the Tedpix, has leapt 45 per cent since September, sending the market capitalisation of traded companies to a run of record highs.
On that evidence, you would think the country’s economy was prospering – and not facing unprecedented sanctions and international pressure over its nuclear programme. Read more