Controlled reopening ends Iran's lengthy stock market shutdown

Iran’s stock market reopened after nearly three months of closure with two days of controlled trading and extended trading windows. More than a third of the market’s main players did not participate, including major petrochemical and steel companies, utilities, and investment firms with large exposure to infrastructure targeted by US and Israeli strikes. Equity funds with over 35% of portfolios invested in the most affected companies remained suspended. The measures aimed to prevent additional selling pressure and stabilize the market. Remaining trading was constrained by rules limiting daily share moves to 3%. Iran’s market remains underdeveloped due to US sanctions and limited access to global financial markets, but it still serves as an important economic indicator.

"A near-three-month closure of Iran's stock market has ended with two days of a controlled reopening among some restrictions for investors. Although Tuesday's and Wednesday's sessions of the Tehran Stock Exchange allowed investors to generate some liquidity, underlying economic troubles were also evident. A little more than a third of the market's main players were absent, reportedly to protect shareholders from the effects of the United States-Israel war."

"A total of 42 ticker symbols for companies representing about 36 percent of the market were offline, Securities and Exchange Organization deputy supervisor Hamid Yari told state media, adding that trading windows were extended by one hour on both days to facilitate the reopening. While Yari said he is hoping for an end to lengthy market closures, this might not be possible if attacks break out again and authorities are forced to intervene."

"Those absent from the reopening included the Fajr and Mobin petrochemical giants, the Khuzestan and Mobarakeh steel giants, utility firms and investment companies that had a large part of their portfolios invested in infrastructure that was targeted by the US and Israel. The involvement of equity funds with more than 35 percent of their portfolios invested in the most affected companies will also remain suspended until further notice."

"Measures put in place before the war to prevent any major financial upsets mean that shares in the remaining two-thirds of the market players could rise or fall only by 3 percent. Iran's stock market remains relatively underdeveloped due to US sanctions and isolation from global financial markets. It also accounts for a smaller share of financial activity than that of banks and the state but still functions as an important baromete"

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