Iran General NewsFirst Persia Fund opens Iranian stock market to foreigners

First Persia Fund opens Iranian stock market to foreigners

-

Bloomberg: First Persia Equity Fund Ltd., the only fund in which foreign investors can buy Iranian stocks, has opened its second-phase of subscription as it aims to raise 250 million euros ($395 million). By Zainab Fattah

April 13 (Bloomberg) — First Persia Equity Fund Ltd., the only fund in which foreign investors can buy Iranian stocks, has opened its second-phase of subscription as it aims to raise 250 million euros ($395 million).

"We are looking at one of the few remaining frontier markets out there," Stephen Austen, the fund's managing director, said in interview in Dubai. "Iran has one of the most diverse economies in the region and the government's privatization program will see most state companies sell shares on the stock exchange."

The First Persia fund was established in July 2007 with 34 million euros. It gained 2.5 percent since, outperforming Tehran's main index, known as TEPIX, every month, according to an e-mailed press release from fund.

The Tehran Stock Exchange, which opened in Feb. 1967, has more than 420 listed companies, according to the bourse's Web site. Companies listed on the exchange include industries such as mining, manufacturing, banking and real-estate with a combined market value of $50 billion, Austin said.

"It's a very cheap market, but there are too many uncertainties over the short term such as the economic management and geopolitical risks," Bahrain-based Nomura Holdings Inc. analyst Tarek Fadlallah said in a telephone interview today. "Over the long term, Iran will be a fantastic place to invest." The potentials are huge for an economy that is rich in resources and has a highly educated workforce, Fadlallah added.

Shares listed in the TEPIX, which advanced 3.9 percent so far this year, trade at an average of 4 or 5 times earnings, Austen said. That compares to a multiple of 15 for the MSCI GCC Countries Index, a measure of more than 140 companies in six Persian Gulf states, including Saudi Arabia and the United Arab Emirates.

Latest news

Iranian Regime’s Head of Prisons Organization Confesses to the Catastrophic Situation of Iran’s Prisons

It is no secret that the Iranian regime’s prisons are some of the worst in the world, with catastrophic...

Iranian Regime and the Humiliating Failure of the Nuclear Talks

The nuclear talks and their ups and downs have become an endless series of stalemates in recent years. As...

Open Letter to Rt. Hon. Boris Johnson, MP To Support the Iranian Resistance

Since 2004, after the failed coup against the Iranian Resistance in 2003, carried out by the then French government...

Iranian Regime Ignores Its Main Demand in the Qatar Talks

On the evening of Friday, June 24, the High Representative of the European Union Josep Borrell traveled to Iran...

Regime’s Negligence Makes Iran the Main Loser in Oil Competitions

Last Friday, the Iranian regime’s president Ebrahim Raisi claimed in a meeting that his regime could be a 'stable'...

Dez River Joins the Dried-Up Rivers of Iran

The Iran regime’s insistence on pointless dam construction and the diversion of the rivers has dried up another river...

Must read

5 ministers threaten to leave Iraq’s cabinet

New York Times: Five ministers suspended their participation in...

Iran Exploits Venezuela’s Crises

By Pooya Stone These days, two pariahs of sorts...

You might also likeRELATED
Recommended to you