The Tehran Stock Exchange (TSE)

The Tehran Stock Exchange was established in 1966 and by 1978 102 companies were listed making it the largest stock market in the Middle East .in the1979 all banks and insurance companies were nationalized   together with the 56 largest industrial groups resulting in the government, through various holding companies, bonyads (foundations) and state entities, controlling most of the exchange listed companies. Although the TSE was never formally closed until 1990 activity was very limited.

Interest in the TSE picked up as the rules were gradually eased , encouraging new companies to be listed .in the past five years the state sector ,which in total still dominates the market , has begun to relinquish control by selling  some shares to the public and by allowing  private entrepreneurs to take control of companies. This policy has paid dividends-witness the 120% increase (in USD terms) of the TSE this year.

The General Partner believes that this trend will continue as the privatization program accelerates, although it should be noted that oil plays a very important part in the economy and that price swings will affect the TSE.it can be argued that the Iranian market is natural hedge against markets in oil importing countries.

Pleas note that the Iranian Rial has been stable against the USD for the past five years.