TEHRAN - Iran’s stock market benchmark index surged past 5.5 million points for the first time on Saturday, rising more than 100,000 units in a strong start to the trading week, as easing political risks and robust demand fueled a fresh wave of buying.
The Tehran Stock Exchange’s main index jumped 124,000 points, or 2.29 percent, in early trading, reaching 5,532,000 points and setting a new all-time high. The equal-weighted index also rose 2.38 percent to over 1,571,000 points, suggesting the buying wave was not limited to a few large-cap stocks but spread across a wide range of listed companies.
Trading value reached 6.38 trillion tomans by midday, reflecting strong liquidity in the market.
The rally follows a largely positive trend last week, with the index reclaiming the five-million-point level and gradually accelerating. Investors had been waiting for a long time for this event. The market’s momentum was driven by declining geopolitical risks and renewed diplomatic activity.
Analysts noted that political developments had previously been a major source of volatility for stocks. However, the recent easing in tensions has encouraged investors to return to the market, particularly among large-cap stocks, where reduced systemic risk lowers the cost of capital.
One of the key signs of the current rally’s strength is the performance of the equal-weighted index, which outpaced the main index by rising 2.38 percent. When both indices rise in tandem, it signals broad-based demand rather than a rally concentrated in a few heavyweights.
Despite the strong performance, some analysts cautioned that consecutive sharp gains could trigger profit-taking in the coming days. The market’s ability to absorb increased supply will be critical. If demand remains strong and trading volumes stay high, the upward trend could continue.
However, a decline in trading value or renewed political shocks could lead to a short-term correction, as seen in previous weeks when heightened geopolitical concerns triggered rapid selloffs.