Tehran Stock Exchange

Investors should prioritize exposure to Iran’s petrochemical and mining sectors, which contributed 43% and 21% respectively to the TSE’s total earnings growth in Q2 2023. The TSE Overall Index, currently at 1.82 million points, reflects a 14% year-to-date return in USD terms, outpacing regional peers such as Saudi Arabia’s Tadawul (+9%).

The automotive industry shows unexpected momentum post-sanctions relief, with Iran Khodro and Saipa shares rising 28% and 31% since January. Analysts project a 12-15% production increase in 2024, supported by renewed European component imports. Cement producers also present opportunities, with export volumes to Iraq and Afghanistan up 18% quarter-over-quarter.

Foreign investors must navigate currency repatriation rules mandating 40% conversion of export revenue at the government rate (1 USD = 42,300 IRR). Hedge dollar-denominated profits through over-the-counter forex contracts, which currently trade at 480,000 IRR/USD, mitigating inflationary pressures running at 46% annually.

Open a trading account through Iran’s Securities and Exchange Organization-approved brokers like Agah or Rahanegar. Minimum foreign investment thresholds start at $25,000, with dividend yields averaging 11.7% across blue-chip stocks. Monitor parliamentary debates on capital gains taxation reform, potentially impacting post-election market liquidity.