Tehran Stock Exchange reopens under tight controls with key firms still suspended

What happened

Iran International reports that after an 80-day shutdown, the Tehran Stock Exchange (TSE) resumed trading on Tuesday under heavy state controls, with 42 major firms, mostly export-oriented, still suspended. The reopening includes curbs on large-scale selling amid unresolved uncertainties over war damage and corporate losses.

The reopening was partial and tightly managed: key sectors such as steel and petrochemicals remain closed due to reported war damage, though authorities have not disclosed details about production halts, insurance, financing, or reconstruction. No updated earnings projections have been issued, leaving investors without crucial information to reassess valuations in the post-conflict environment.

Trading resumed in sectors already weakened before the conflict, including an undercapitalized banking system and a loss-making automobile industry now further hit by supply disruptions. Capital market participants operate amid near-triple-digit inflation and strains on the real estate sector, adding layers of economic fragility to the market dynamics.

Known from the source

• The Tehran Stock Exchange was closed for 80 days and has now reopened under strict state controls.
• 42 major firms, mostly export-oriented, remain suspended from trading.
• Steel and petrochemical companies are among those still suspended due to reported war damage.
• Authorities have not disclosed the extent of the damage, production halts, insurance coverage, financing, or reconstruction timelines.
• Sectors that resumed trading were structurally fragile before the conflict, including banking, automobile, and real estate sectors.

What remains unclear

Market controls reportedly include restrictions on institutional investors and major shareholders to limit sell-offs, with certain funds facing unit caps and some stocks reopened without price fluctuation limits. These measures appear designed to manage the TEDPIX index’s stability and prevent a politically damaging sharp decline rather than to restore full market functionality.

What remains unclear: Extent and official confirmation of war damage to steel, petrochemical, and other major firms. Official statements detailing production, insurance, and reconstruction conditions for suspended companies. Verification of the scope and enforcement level of trading restrictions imposed on investors and funds. Any updated earnings projections or corporate disclosures relevant to investors.

Evidence note

Outside Brief has treated the source material as confirmed within the supplied source context, while retaining attribution to the original publisher.

Original source: Iran International. Open the source.