The Tehran Stock Exchange's main index surged 36,112 points, or 1.71%, on September 24, closing at 2,152,650, as investors reacted positively to reports from President Masoud Pezeshkian’s diplomatic engagements in New York, EcoIran reported.

The market's upward momentum, though fluctuating within a 3% range, signals growing optimism, driven in part by political developments. Recent discussions surrounding  President Masoud Pezeshkian's visit to New York have provided hope, with remarks from the trip suggesting potential economic improvements. Pezeshkian's statements, though cautiously optimistic, have been closely watched by investors.

Fatemeh Mohajerani, the new spokesperson of the government, delivered positive signals in her first press conference, particularly concerning Iran's status with the Financial Action Task Force (FATF). She confirmed that discussions, in coordination with the Expediency Council, are ongoing, and actions are being taken to comply with FATF standards.

Mohajerani stressed the importance of seizing every opportunity to lift sanctions, stating that no time should be wasted if progress can be made, which the diplomatic department is attempting to do in the United Nations General Assembly (UNGA).

Total market turnover reached IRR 233.58 trillion ($5.5bn), with debt securities accounting for 43% of total market value. Retail equity trading rose 3% from the previous day’s close and stood at IRR 55.05 trillion ($1.29bn).

Large-cap stocks like Mobarakeh Steel Company, Parsian Oil and Gas Development Group and Bank Mellat) were among the market's top performers.

Latest political developments have buoyed market sentiment, with investors expressing greater confidence in the future of the capital markets.

Despite the overall positive performance, concerns remain about the volatility cap on stocks. Many investors are calling on new stock exchange chief Hojatolah Saydi to restore the previous price spread.

This is while, in his inaugural speech as head of the Securities and Exchange Organisation (SEO), Saydi underscored the importance of strengthening corporate governance in Iran's capital markets.

"Corporate governance must move beyond a ceremonial role and become a real and structured system," he said, warning that failure to uphold these standards would have widespread negative consequences.