Iranian investors fled the Tehran stock market en masse Saturday, dumping shares worth 350 trillion rials as trading reopened, sparked by the regime’s failure to shield its nuclear infrastructure from Israeli and US attacks.
Established in 1967, Iran’s Tehran Stock Exchange had once been one of the world’s best performing stock exchanges from 2002 through 2013. Despite decades of international sanctions, Iranian investors have used the stock market as a hedge against inflation and currency devaluation with the exchange listing over 500 companies worth more than $150 billion.
Within 90 minutes of opening, 99% of stocks traded in red territory, exceeding 20 trillion rials ($23.8 million), with nearly 12 trillion rials ($14.3 million) withdrawn by individual investors alone. Banks and investment firms dominated trading activity, moving 6.6 trillion rials ($7.85 million) and 2.8 trillion rials ($3.33 million) respectively.
By day’s end, total sell orders had reached 350 trillion rials while Iran’s main index fell 62,503 points, or 2.1%, to 2,922,101. Overall, Iran’s main index dropped about one percent to 2,957,000 points while its equal-weight index slid nearly 3,800 points, approaching 920,000, according to Iran International.
Iran normally maintains a five percent daily price fluctuation limit.
Since the US withdrew from the disastrous JCPOA nuclear deal in 2018 and imposed sanctions on Iran’s oil exports and international banking, the rial has lost a staggering 15 times its value. In the past three years alone, it has depreciated by over 50%, coinciding with runaway inflation rates now hovering between 40-50%.
The fallout has pushed tens of millions of Iranians into poverty, creating a powder keg of public discontent. Officially, one-third of Iran’s population now lives in extreme poverty. However, international estimates suggest the real figure could be much higher, with some reporting 60% of citizens living below the poverty line.
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