FEDERATION OF EURO-ASIAN STOCK EXCHANGES
SEMI ANNUAL REPORT OCTOBER 2006
IRAQ STOCK EXCHANGE
The total trading volume in the semi annual
of 2006 reached US$ 686 million, an
increase of 40% when compared with the
last months of 2005.
Taha Ahmed Abdul Salam
CEO
The Iraq Stock Exchange (ISX) introduced a
special index which started working in October
2004 and closed in December 2004 at (64.996)
points and closed in the beginning of January
2005 at (63.919) points and in the end of
December 2005 closed at (45.644) points, in
January 2006 at (38.209) points and closed in
June at (25.584) points.
The ISX held approximately 46 sessions in the
first half of 2006 compared with 94 sessions in
2005 and 48 sessions in 2004. The total trading
volume in the semi annual of 2006 reached
US$ 686 million, an increase of 40% when
compared with the last months of 2005.
Total traded shares in the first half of 2006 was
329 million shares, a decrease of 31% when
compared with the last months of 2005.
HISTORY AND DEVELOPMENT
For the period of 1992-2003 the Baghdad
Stock Exchange was operating and was
well known.
The previous Baghdad Stock Exchange was
established by the law No. 24 in 1991.
The market was related to the government
and it was able to list (113) of different
companies, some private and others from
the mixed sector. During that period
especially in 2003, the market had gained
an annual trading volume exceeding,
US$ 17.5 million. But this market was closed
by a decision of its Governing Council in
March 19, 2003.
Establishment of Iraq Stock Exchange
On 18 of April 2004 the temporary law No.
74 was issued, it gave the authority to
establish two important capital development
bodies concerning financial sectors,
they are:
A. ISX
B. Iraq Security Commission (ISC).
Meaning of ISX
The ISX is an entity capital market not
related or powered by the government.
It is directed by a Board of nine members
representing different economical sectors
of investments called the BOG.
The market is the place where the
investments, exchange stocks, purchasing
and selling are done. It is considered one of
the channels in which funds can flow
between persons and commissions through
PAGE 76
The total numbers of transactions reached in
the first half of 2006 was 23 thousand, an
increase of 13 % when compared with last
months of 2005.
In 2005, the number of the listed companies
reached to 85 companies compared with (80)
companies in 2004. In the first half of 2006, the
number of listed companies increased to reach
(93).
During first half of 2006, the ISX has organized
a number of training courses such as the
training course of agent brokers and training
courses for investors. These training courses
include the teaching of Trading in the ISX and
Financial Statements. The ISX publishes a
special newspaper called the Capital Market.
different sectors that may help to mobilize
and develop financing and financial
channels in order to give readiness for
different investments.
Goals of the ISX
a) to operate and regulate its members and
to list companies in a manner that is
consistent with the goal of protecting
investors and promoting investor confidence
in the market.
b) to promote the interests of investors in
efficient, reliable, competitive, transparent
and honest markets.
c) to organize and facilitate fair, efficient and
orderly transactions in securities, including
the clearance and settlement of such
transactions.
d) to regulate its members’ dealings in
securities-related services and transactions
and define the rights and obligations of
parties concerned and the means to protect
their legal interests.
e) to assist in capital-raising for companies
which either are listed, or which desire to list
on the Exchange.
f) to engage, as appropriate, in investor
education programs to educate potential
investors about opportunities for
investments at the Exchange.
g) to collect, analyze and publish statistics
and information necessary to achieve the
goals stipulated in this Law.
h) to establish and support contacts with the
stock exchanges of Arab and international
markets that may be beneficial to the
development of the Exchange.
i) to undertake other services and activities
necessary to support its objectives.
Published in Arabic. The Capital Market covers
all financial events which happen within the ISX
and the listed companies. The ISX publishes its
information in the website www.isx-iq.net.
The daily bulletin is published in major Iraqi
newspapers and is also published in Iraqi and
Arabic news broadcasts.
The ISX has successfully joined FEAS
(Federation of EURO-ASIAN Stock Exchanges),
which held its annual meeting in Shiraz on
September 21st, 2005. Also ISX has
successfully joined the Union of Arab Stock
Exchange in 2006. The ISX has also been
working on Electronic Trading and Depository
system center in 2006.
FUTURE OUTLOOK
The ISX’s Continued Plans for 2006
• to continue to list more companies as they
meet listing requirements,
• to participate in conferences and
international symposiums,
• to initiate development and training
programs in cooperation with other
exchanges, especially in the Middle East,
• to install and begin operating the
automated electronic trading system,
• to assist in the eventual privatization of
state owned enterprises,
• to join other regional and global stock
exchange associations,
• to support the adoption of the new
Securities Law in cooperation with the Iraqi
Securities Commission,
• to hold meetings and symposiums with
financial investment companies and
investors,
• to publish trading data and information
about the ISX to encourage investment in
Iraq,
• to study the opening of regional branches
that will be electronically linked to the ISX in
Baghdad,
• to contract with a satellite channel to
spread trading session information to all
investors; and
• to obtain permission from the Iraqi
Securities Commission for foreign
investment on the ISX.