Iran stocks, rial gain after nuclear talks

'Positive and constructive' discussions in Istanbul help spur the stock exchange's largest daily rise in seven months

Iran's currency and stock market have experienced a small but much needed boost after nuclear talks between Iran and major world powers on Saturday that both sides described as positive and constructive.
The progress of the talks, although slight, helped the rial to climb, trading at 16,500 to the dollar on the open market on Monday, from nearly 19,000 two weeks ago, the semi-official Fars news agency reported on Monday.
Western diplomats say they were surprised by Iran's constructive approach in the first talks in 15 months about its controversial atomic programme, but maintain that any final settlement will be long and complex.
The rial took a battering in January after U.S. President Barack Obama announced tough new sanctions against Iran's central bank with no marked recovery by the currency since then. Increasing speculation over possible military strikes against Iran by Israel and the United States added further downward pressure.
Tehran's stock market also saw gains on Sunday and Monday, Fars news agency reported. It said the morning after the talks the Tehran index rose to a record high of 27,241 points after the largest daily rise in seven months.
"Many factors, especially political issues, have had an impact on Iran's stock exchange ... but following the meeting with P5+1 countries, calm has returned," ILNA news agency quoted analyst Alireza Asgari Marani as saying on Monday.
"Naturally, there will be a more positive view towards the stock exchange," he added.
The United States and its allies have imposed sanctions against Iran's banking and energy sectors to force Iran to reconsider its uranium enrichment activities which they believe is part of a programme to develop a nuclear weapons capability.Iran says its goals are purely peaceful.
While Iranian officials have played down the impact of sanctions, people across the country have encountered increasing financial hardship as prices of goods have spiralled and the value of the rial has plummeted.
The economic slump has led to tens of thousands of job losses as companies have closed their doors over the prospect of mounting debt.
The withdrawal of generous government subsidies on food and fuel has piled further pressure on Iranians through rampant inflation.
Iran and the five permanent members of the U.N. Security Council plus Germany are set to meet again in Baghdad on 23 May in an effort to work towards a comprehensive negotiated solution over Iran's nuclear programme.
Iran maintains it has the right to enrich uranium under its membership of the Nuclear Non-Proliferation Treaty but has recently hinted it may be flexible in its activities as long as its needs are met and the West lifts sanctions against it.
Meanwhile there is disageement among the countries negotiating with Iran over the policy of using sanctions to punish Tehran. Russia and China have criticised the measures imposed by the United States and EU, with Moscow recently describing them as "totally contrary to international norms".