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Tehran stock market rally likely to continue

Iran’s stock market is recovering dramatically as subsidized exchange rates are reduced, commodities are deregulated and certain prices are brought in line with inflation.
Stock market employees work at Tehran's Stock Exchange, Iran, January 17, 2016. REUTERS/Raheb Homavandi/TIMAATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. FOR EDITORIAL USE ONLY.       TPX IMAGES OF THE DAY      - GF20000097701

Iran’s stock market has been rallying in recent weeks and months, notching fresh all-time highs. The Tehran Stock Exchange (TSE) Index spiked by 0.07% to close at 278,674 points on Wednesday, its return was a whopping 55.9% according to the report posted on the TSE's website. The recovery is also in line with analysts’ estimates for the benchmark’s rise around 60% over the year, conducted and published by the economic Daily Donye-e-Eqtesad on July 16.

While traditionally parallel markets have the potential to attract idle money in the economy, they have not shown any signs of attractiveness for retail investors over the past few months. The gold, currency and housing markets currently do not enjoy a high profitability outlook for Iranian investors regarding their dramatic spike on the wake of rial depreciation in the previous year.

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