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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2007
IRAQ STOCK EXCHANGE
Taha Ahmed Abdul Salam
CEO
The important issue for the year 2006
was the signing of the agreement between
ISX and OMX to provide the market with
ELECTRONIC SYSTEMS (Equator & Horizon
SYSTEMS).
Iraq Stock Exchange (ISX) introduced a special
index which was introduced in October 2004
and which closed in December 2004 at 64.996
points, January 2006 at 38.209 points, and
December 2006 at 25.288 points.
The ISX held approximately 92 sessions in
2006 compared with 94 sessions in 2005.
The total trading volume for the year of 2006
reached US$ 101 million, a decrease of 59%
when compared with the year 2005. The total
traded shares in 2006 was 57,974 million
shares, an increase of 4% when compared with
the year 2005. The total numbers of
transactions reached in 2006 was 38.6
thousand.
In 2005, the number of the listed companies
reached 85 companies compared with 80
companies in 2004. The number of listed
companies in 2006 increased to reach 93.
During first half of 2006, 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 ISX and Financial
Statements. The ISX publishes a special
newspaper called the Capital Market.
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 ISX has successfully joined FEAS,
which held its annual meeting in Shiraz on
21 September 2005. Also ISX has successfully
joined the Union of Arab Stock Exchange in
June 2006.
The important issue for the year 2006 was
the signing of the agreement between ISX and
OMX to provide the market with ELECTRONIC
SYSTEMS (Equator & Horizon SYSTEMS).
And the first travel was realized by sending 7
employees from the IT department to Amman,
Jordan for training with IBM. Our plan is to be
live with the e-trading next April 2007.
The ISX is still a small market but we are doing
our best to transform it to meet or exceed the
standards in the region.
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 on
19 March 2003.
Establishment of Iraq Stock Exchange
On 18 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
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.
FUTURE OUTLOOK
The ISX’s continued plans for 2006 are to:
• list more companies as they meet listing
requirements,
• participate in conferences and
international symposiums,
• initiate development and training
programs in cooperation with other
exchanges, especially in the Middle East,
• install and begin operating the automated
electronic trading system in May 2007
• assist in the eventual privatization of state
owned enterprises,
• issue a new Securities Law in cooperation
with the Iraqi Securities Commission,
• hold meetings and symposiums with
financial investment companies and
investors,
• publish trading data and information about
the ISX to encourage investment in Iraq,
• open new branches (Trading halls) In
Erbil and Basrah, that will be electronically
linked to the ISX in Baghdad,
• contract with a satellite channel to spread
trading session information to all investors,
and;
• obtain permission from the Iraqi Securities
Commission for foreign investment on the
ISX.
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