Iranian Stocks and Currency Gain as Sanctions Relief Loomsby
Iranian shares climbed to the highest level in almost five months and the rial gained as diplomats gathered in Vienna to announce the end of international economic sanctions against the country’s nuclear program.
The benchmark TEDPIX index gained 2 percent to 64,860.9 at the close in Tehran, the highest level since Aug. 23, data posted on the exchange’s website showed. The currency gained 2 percent, according to Daily Rates For Gold Coins and Currencies, a Facebook page used by businessmen based in Iran and abroad.
Iran’s Foreign Minister Mohammad Javad Zarif said sanctions will be lifted on Saturday once the United Nations nuclear agency reports that the Islamic Republic has fulfilled its commitments under July’s nuclear agreement with world powers. The move will unlock billions of dollars in frozen accounts and pave the way for a surge in Iranian oil exports as well as foreign investments into the country.
“Ultimately it’s to do with the nuclear deal and its implementation and particularly the impact that sanctions removal will have on oil exports and the wider economy,” said Masoud Gholampour, an analyst at Novin Investment Bank in Tehran.
The accord imposes restrictions on Iran’s nuclear program in return for the lifting of oil and financial sanctions that have cut off domestic banks from the international system and prevented aviation companies from upgrading aging fleets.
Companies including Parsian Oil & Gas Development Co. and Iran Telecommunications Co. led the gains, each advancing 5 percent, the maximum limit imposed by the stock exchange to reduce volatility.
“The lifting of sanctions will have a direct impact on the profitability of many companies and sectors such as banks and industrial companies, making it cheaper and easier for them to transact globally,” said Ramin Rabii, chief executive officer of Turquoise Partners in Tehran.