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Tehran Stock Exchange plunges, baffling investors

Why is Iran’s stock exchange falling under President Hassan Rouhani and after the easing of sanctions?
EDITORS' NOTE:  Reuters and other foreign media are subject to Iranian restrictions on their ability to film or take pictures in Tehran.

An Iranian official works at her desk in the main hall of the Tehran Stock Exchange August 3, 2010. Sanctions against Iran have done nothing to dent a boom in its stock market, as investors bet on a continued rise in company stocks which have been undervalued for years, the head of the Tehran bourse said.    REUTERS/Morteza Nikoubazl (IRAN - Tags: BUSINESS POLITICS) - RTR
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The Tehran Stock Exchange (TSE) is making news in Iran for all the wrong reasons. It's falling, and fast. Its main index peaked at 89,500 points on Jan. 5 of this year. Then it started to fall. By Jan. 26, it had fallen to 81,905 points. At one point, its dive was described as "historic." 

A loss of 7,595 points within three weeks (almost 7%) is a lot for any stock exchange, especially the TSE, one of the fastest rising in the world. In mid-August 2010, it crossed the 16,000 points threshold and that was considered major news. Now, despite the recent falls, its value is almost 400% higher than then.

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