Stock market employees work at Tehran's Stock Exchange, Iran in this January 17, 2016 photo. REUTERS/Raheb Homavandi/TIMA
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A leap by the Tehran stock market in the past four weeks contrasts with gloom in many bourses around the world and hints at Iran's investment potential as its economy, long isolated by sanctions, rejoins the global trading system. The TEDPIX index has soared 18.3 percent since Jan. 16, when the sanctions were lifted after an international deal on Iran's nuclear program. Many investors are betting that by restoring Iran's links with the rest of the world and attracting foreign capital and technology, the end of sanctions will trigger a long-term economic boom.Auto stocks have led the rally because of prospects for tie-ups with foreign firms; Iran Khodro, which announced a 50-50 venture to build cars with Peugeot, has rocketed 52 percent.Under many ways of valuing stocks, Iranian equities are still cheap by international standards. The market is trading at 7-7.5 times this year's projected corporate earnings – above its long-term average of 6 times, but well below 11 times for the world's frontier markets, Rabii said.
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