Iran threatens world markets, but has its own problems

After two years of rapid growth, Iran's stock market is plummeting. The Financial Times spoke with Khosro Pourmemar, managing director of brokers Pars Nemoodgar. READ MORE

A lot of expatriate money came in during 2003-4, feeding rising prices in real estate, especially near the Caspian sea, and in stocks," said Khosro Pourmemar, managing director of brokers Pars Nemoodgar. "Part is now moving out." ...

Iran's Parliment isn't helping the Tehran Stock Exchange (TSE):

"Deputies have voted to freeze prices of many goods and to reduce profit rates," said Mr Pourmemar. This will affect the profits of some listed companies, including the two private banks.

"Privatisation has been primarily a means for the government to bridge a deficit," said Mr Pourmemar. "There is no notion of improving productivity, introducing private management, or developing capital markets. But the country cannot succeed without creating a real private sector." ...

"But pessimists look at the elections and see no new ideas and no new faces, said a broker. They worry that pressure from outside means tighter rule at home and that in turn means more bad politics, more bad economic policy, and no markets."