Trading in Iran’s fixed-income investment funds resumed after an 11-day suspension triggered by US-Israeli military attack on the country, while broader equity trading on the Tehran Stock Exchange remains halted.
The funds reopened on Sunday (March 8) in a limited trading window between 10 a.m. and 12 p.m., marking the first step toward restoring activity in Iran’s capital market after the recent conflict. During the two-hour session, about 43.87 trillion tomans ($292.5 million) worth of fund units changed hands.
Market data show that around 7.11 trillion tomans ($47.4 million) of net capital moved out of fixed-income funds during the session. While notable, the figure is significantly smaller than the market reaction during the earlier 12-day war in June, when roughly 18.42 trillion tomans ($122.8 million) exited these funds on the first day of trading.
The Tehran Stock Exchange halted trading last week following the military strikes on Iran on February 28. Roughly 50 minutes after the market opened that day, all trades were canceled. Shortly afterward, authorities declared a week of national mourning following the martyrdom of Iran’s Leader, suspending most economic and financial activities until March 7.
In line with a decision by the Supreme Council of the Stock Exchange, trading in equities and derivatives will remain suspended on March 8–10 (March 8–10). However, policymakers have allowed selected financial instruments to gradually resume activity in order to maintain liquidity for investors.
Fixed-income funds were the first instruments to reopen, while housing facility bonds are scheduled to begin trading in a similar two-hour window starting Monday (March 9).
Despite the challenging environment, prices of fixed-income exchange-traded funds rose by an average of 0.33% on the first day of trading, compared with a 0.17% increase following the reopening of these funds during the earlier conflict.
Market analysts say allowing fixed-income funds to resume trading provides investors with access to liquidity at a time when many assets—including equities, stock funds and gold funds—remain temporarily locked.
Hojjat Sarhangi, a capital market analyst, said the relatively balanced market reaction indicates that investors and fund managers have become more experienced in dealing with geopolitical shocks.
“These funds are considered among the safest short-term investment options because their portfolios are mainly composed of bank deposits, government bonds and corporate debt,” he said, adding that they can offer greater stability during periods of economic volatility.
Analysts note that the gradual reopening of financial instruments could help the market return to normal conditions while maintaining balance between liquidity and investor protection.
