Economy, Business And Markets

Iran, S. Korea Seek Stronger Ties

Iran, S. Korea Seek  Stronger Ties
Iran, S. Korea Seek  Stronger Ties

Iran and South Korean financial managers have held negotiations to enhance cooperation and joint investments.

The negotiations took place on the sidelines of a workshop held by the Central Securities Depository of Iran (CSDI) for their South Korean counterparts.

“Capital market should prepare for the sanctions to be removed or eased in the wake of nuclear energy negotiations,” said the CEO of the CSDI, Hamed Soltaninejad.

He noted that the capital market has received many requests from foreign investors; however, the volume of investment at the exchange market is not significant due to restrictions in transferring the money.

Price-Earnings ratio (P/E) in Iran’s exchange is between 5 and 6, while the rate of return is between 15 and 20 and these are the factors that make Iran’s capital market an attractive place for investment.

Soltaninejad stresses that the only obstacles are foreign currency exchange risk and the restrictions to transfer the money, and if these obstacles are removed, numerous investors would rush to Tehran Stock Exchange (TSE).

In January this year, the TSE became the second best performing stock market in the world, with a nearly 133% rise since March 2013.

The extraordinary growth was achieved by the TSE despite the limited foreign inflows and economic sanctions imposed on Iran by Western countries and the United Nations Security Council.