Thread by @mwojtal

1/ "#Iran’s stock market outstrips global rivals" - timely update from @FinancialTimes although the article highlights only the drivers of that last year's rally, i.e. exporters of petrochemicals, steel, metals, which obviously benefitted from USD strength
ft.com/content/62c734…

@FinancialTimes 2/ This year consumer-oriented industries are top performers with confectioners, retail and distribution, and beverages leading the way with YTD returns of 400% or more. Diversified chemicals, metallic ores, and steel industries are actually among the worst performers in 2019

@FinancialTimes 3/ While exporters benefit from USD appreciation, their volumes are going down due to sanctions. On the other hand, domestic companies are the biggest winners of sanctions because their foreign competitors are gone.

@FinancialTimes 4/ Weak #Rial means that even cheap Chinese exporters are no longer competitive. Sanctions made logistics and payments more difficult which further disrupted trade. Hence local companies gain market share and are able to increase prices faster than their costs are inflating

@FinancialTimes 5/ Worth noting that the combination of lower deposit rates offered by banks, no momentum in USD / gold coin prices and lethargic housing market started pushing individual Iranian investors towards the stock market

@FinancialTimes 6/ A recent IPO attracted 800k investors vs. 300k last year. 40k new trading codes are being issued every month. Stock market turnover topped $400 million on a couple of days in September, a new record

@FinancialTimes 7/ While some industries got more expensive, many stocks are still valued at 3x-4x forward P/E and earnings continue to grow. Also, government decided to exempt gains from the revaluation of assets from tax. Many companies hold real estate on their balance sheet at purchase price