JUNE 2013 - FEAS

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013
IRAQ STOCK EXCHANGE
To speed up the evolution process ISX
has successfully accomplished all of 2012
plans.
Taha Ahmed AL-Rubaye
CEO
Iraq Stock Exchange (ISX) established
according to the law No. (74) in April 18th,
2004, and start the trading in its 1st session on
June 24th, 2004, Using the manual trading with
Wight plastic boards.
The operation in ISX transferred to electronic
trading in April 19th, 2009. The trading
operation since 2009 are five trading sessions
from Sunday to Thursday.
ISX market capitalization is (4.6) billion US$, the
number of listed shares is (3712) billion, and
the deposit shares are (2985) billion for (85)
listed companies.
ISX price index for trading shares price:
• On 2010 ISX price index closed on (100,98)
points.
• On 2011 ISX price index closed on (103,11)
points at the end of 1st trading session, and
on (136,03) points at the end of last trading
session.
• On 2012 ISX price index closed on (138, 18)
points
ISX organized the offering of Asiacell in the 3rd
of February, 2013. This IPOs will increase the
Market Capitalization from (4.6) billion US$ to
(9) billion US$ which is the largest IPO volume
ever happened in Iraq and the Middle East
since 2008. To speed up the evolution process
ISX has successfully accomplished all of 2012
plans and is looking forward to accomplish all
of 2013 plans by achieving the goals stipulated
in this report.
HISTORY AND DEVELOPMENT
1. 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 listed (113) 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.
However, this market was closed by a
decision of its Governing Council in March
19, 2003.
2. 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. Iraq Stock Exchange (ISX).
B. Iraq Security Commission (ISC).
3. Meaning of Iraq Stock Exchange
The ISX is an entity capital market not
related or powered by the government. It
is directed by a Board of Governors (BOG)
and consists of nine members, representing
different economic sectors of investment.
The market is where the investments,
exchange stocks, purchasing and selling
takes place. It is considered one of the
channels in which funds can flow between
persons and commissions through different
sectors that may help to mobilize and
develop financing and financial channels
in order to give readiness for different
investments.
FUTURE OUTLOOK
1. Organizing (232) trading sessions in
average five sessions weekly, and
supervised and accurate trading dealings
according to rules and electronic trading
instructions and disclosure about
transactions based the on the effected
ratios and Special orders.
2. Publishing daily tickers on ISX Website
during trading sessions which has been
started in December 2011.
3. Issuing (232) end-of-session daily reports
and yearly reports on ISX Website in
addition to publishing listed companies
guide and financial statements.
4. End-of-session prices published by
Bloomberg and Thomson Routers starting
from January 2012.
5. Monitoring, surveillance of trading
limitations using Cap Formula T+0 which is
supposed to be changed to new Clearing
and Settlement Cap Formula T+2 instead of
current formula T+ 0 after the ISC approval
of the Custodian Banks regulations.
Inspection plans for all brokerage firms to
check files and documents integrity.
6. Electronic trading support for Al-Rabee
Brokerage branch in Erbil and Sulimaniya
Erbil branch started electronic trading
through ISX system since May, 2011.
7. However, Iraq Stock exchange will support
any brokerage firms planning to have
branches in other governorates.
8. Encouraging the non-listed companies to
be listed in ISX.
9. Inviting new firms and select the best five for
2012 to be licensed as brokerage firms.
10. Upgrade ISX electronic trading system to
new advanced version from OMX NASDAQ.
11. Representing Iraq Stock Exchange in
relevant conferences locally and globally.
12. Holding workshops to educate and
encourage investment in ISX.
CAPITAL MARKET DEVELOPMENT
AND ECONOMIC OUTLOOK
GDP in current prices for the year 2011
According to Central Bank report for the year
2011.
Iraq’s economy features by oil’s sector
contribution to GDP, which is funding 92% of
the general budget revenue. That’s why There
is a very strong relationship among actual oil
revenues and GDP.
Oil sector is so affected by global oil demand
and global economic crisis associated within
the movement of global economy. As happened
in 2009 due to global economic crisis.
The contribution of industrial, agricultural, and
banking sectors in addition to many other
sectors are very poor in GDP.
We enclose herewith the number of important
economic indicator:
1. GDP in current prices for the year 2011 has
increased to (211.3) Trillion ID compared to
(158.5) Trillion ID for 2010.
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