- Banking Sector Trading Represents 78% Of Total Volume
By Ron Chen, Senior Correspondent, ASEAN Region
Iraq Stock Exchange’s (ISX) trading volume in April surged by 58 per cent compared to the previous month to US$66.7 million. The banking sector had the highest share in trading volume with 78.0 per cent, followed by the telecom sector with an 8.4 per cent share. The industry sector had a 5.2 per cent share, the agriculture sector had a 4.0 per cent share, hotels & tourism had a 3.7 per cent share, and the rest of the sectors had a 0.7 per cent share in total trading volume. The month witnessed a high volume of cross transactions in the banking sector.
Three companies decided to distribute profits during April; Baghdad Soft Drinks Co (yield: 5.3%), Trust International Islamic Bank (yield: 2.9%), and Baghdad Hotel (yield: 3.2%).
Twenty companies’ share prices went up in April, with Ishtar Hotels climbing +41.9 per cent during the month, followed by Tourist Village of Mosul Dam +28.7 per cent.
In April, Rabee Securities ISX Index and USD RSISX Index decreased by 7.0 per cent (March: +6.9%, +8.2% year to date as of the end of April).
Foreigners’ share in total trading volume increased from 3.7 per cent in March to 4.0 per cent in April. Rabee Securities expects to see an increase in demand on the ISX as the oil price remains high, and the real GDP of Iraq will grow to the 6th highest in the world in 2022, according to IMF.
For the increase in demand, transparency in the market should continue improving. More importantly, the limit on foreigners’ ownership should be eliminated (Iraqi Companies Law No. 21 of 1997 limits foreign ownership in all Iraqi companies to 49 per cent, except for the banking sector).
