TEHRAN — Hotels in the Iranian capital are all booked, hosting an array of bargain-hunting foreign investors in one of the world's biggest untapped markets. As Iran and six world powers have finally clinched a deal on Iran's nuclear program, the road is paved for positive economic momentum. With the most crucial systemic risk to investment no longer squeezing the insulated Iranian stock market, many institutional investors are gauging sectors in which to pump fresh capital.
At present, given the hitherto wobbly Iranian economy, most stocks have notched rock-bottom values. Listed companies are grappling with the country’s recession and credit crunch, and trade volume and value have recently reached a dramatic low. The Tehran Stock Exchange (TSE) benchmark in particular has had a bumpy ride since the beginning of the current Iranian year, which began March 21. In recent months, investors shored up their portfolios in search of gains on speculation about a nuclear deal, with TEDPIX, the main index, soaring around 6% during the month ending July 22.