JUNE 2013 - FEAS

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FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013IRAQ STOCK EXCHANGETo speed up the evolution process ISXhas successfully accomplished all of 2012plans.Taha Ahmed AL-RubayeCEOIraq Stock Exchange (ISX) establishedaccording to the law No. (74) in April 18th,2004, and start the trading in its 1st session onJune 24th, 2004, Using the manual trading withWight plastic boards.The operation in ISX transferred to electronictrading in April 19th, 2009. The tradingoperation since 2009 are five trading sessionsfrom Sunday to Thursday.ISX market capitalization is (4.6) billion US$, thenumber of listed shares is (3712) billion, andthe deposit shares are (2985) billion for (85)listed companies.ISX price index for trading shares price:• On 2010 ISX price index closed on (100, 98)points.• On 2011 ISX price index closed on (103, 11)points at the end of 1st trading session, andon (136, 03) points at the end of last tradingsession.On 2012 ISX price index closed on (138, 18)pointsISX organized the offering of Asiacell in the 3rdof February, 2013. This IPOs will increase theMarket Capitalization from (4.6) billion US$ to(9) billion US$ which is the largest IPO volumeever happened in Iraq and the Middle Eastsince 2008. To speed up the evolution processISX has successfully accomplished all of 2012plans and is looking forward to accomplish allof 2013 plans by achieving the goals stipulatedin this report.HISTORY AND DEVELOPMENT1. For the period of 1992-2003 the BaghdadStock Exchange was operating and waswell known.The previous Baghdad Stock Exchangewas established by the law No. 24 in 1991.The market was related to the governmentand it listed (113) different companies,some private and others from the mixedsector. During that period, especially in2003, the market had gained an annualtrading volume exceeding, US$17.5 million.However, this market was closed by adecision of its Governing Council in March19, 2003.2. Establishment of Iraq Stock ExchangeOn 18 of April 2004, the temporary lawNo. 74 was issued. It gave the authority toestablish two important capital developmentbodies concerning financial sectors, theyare:A. Iraq Stock Exchange (ISX).B. Iraq Security Commission (ISC).3. Meaning of Iraq Stock ExchangeThe ISX is an entity capital market notrelated or powered by the government. Itis directed by a Board of Governors (BOG)and consists of nine members, representingdifferent economic sectors of investment.The market is where the investments,exchange stocks, purchasing and sellingtakes place. It is considered one of thechannels in which funds can flow betweenpersons and commissions through differentsectors that may help to mobilize anddevelop financing and financial channelsin order to give readiness for differentinvestments.FUTURE OUTLOOK1. Organizing (232) trading sessions inaverage five sessions weekly, andsupervised and accurate trading dealingsaccording to rules and electronic tradinginstructions and disclosure abouttransactions based the on the effectedratios and Special orders.2. Publishing daily tickers on ISX Websiteduring trading sessions which has beenstarted in December 2011.3. Issuing (232) end-of-session daily reportsand yearly reports on ISX Website inaddition to publishing listed companiesguide and financial statements.4. End-of-session prices published byBloomberg and Thomson Routers startingfrom January 2012.5. Monitoring, surveillance of tradinglimitations using Cap Formula T+0 which issupposed to be changed to new Clearingand Settlement Cap Formula T+2 instead ofcurrent formula T+ 0 after the ISC approvalof the Custodian Banks regulations.Inspection plans for all brokerage firms tocheck files and documents integrity.6. Electronic trading support for Al-RabeeBrokerage branch in Erbil and SulimaniyaErbil branch started electronic tradingthrough ISX system since May, 2011.7. However, Iraq Stock exchange will supportany brokerage firms planning to havebranches in other governorates.8. Encouraging the non-listed companies tobe listed in ISX.9. Inviting new firms and select the best five for2012 to be licensed as brokerage firms.10. Upgrade ISX electronic trading system tonew advanced version from OMX NASDAQ.11. Representing Iraq Stock Exchange inrelevant conferences locally and globally.12. Holding workshops to educate andencourage investment in ISX.CAPITAL MARKET DEVELOPMENTAND ECONOMIC OUTLOOKGDP in current prices for the year 2011According to Central Bank report for the year2011.Iraq’s economy features by oil’s sectorcontribution to GDP, which is funding 92% ofthe general budget revenue. That’s why Thereis a very strong relationship among actual oilrevenues and GDP.Oil sector is so affected by global oil demandand global economic crisis associated withinthe movement of global economy. As happenedin 2009 due to global economic crisis.The contribution of industrial, agricultural, andbanking sectors in addition to many othersectors are very poor in GDP.We enclose herewith the number of importanteconomic indicator:1. GDP in current prices for the year 2011 hasincreased to (211.3) Trillion ID compared to(158.5) Trillion ID for 2010.PAGE 46
FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013IRAQ STOCK EXCHANGECAPITAL MARKET DEVELOPMENT AND ECONOMIC OUTLOOKISX PRICE INDEX 2011, 2012Points150145.18142.76 142.45 142.46140131.67133.01126.98 128.29130 123.67121.66120122.36 122.33116.44118.06110115.53 116.05 114.22117.81 117.49 119.1210090Jan2. Average per capita of the GDP has increasedto (6359) Thousand ID for the year 2011 versus(4887) Thousand ID for 2010.3. Economic activity for the year 2011 hasconfined on distributive sectors withoutproductive sectors. But still the activitiescontribution of master sectors like:(Agricultural, industrial, and Electrical) too low.Government contribution to economicactivities in GDP:1. Oil & Mining sector has achieved highestcontribution in GDP, so it ranks 1st compared toother activities. As the percentage contributionis (54.7%), which is equivalent to 116.2 TrillionID, thus recording increase rate of (58%)compared to the previous year.2. Social and Personal Service sector ranks 2ndwith (13.1%) percentage contribution, whichis equivalent to 27.9 Trillion ID, thus recordingincrease rate of (10.3%) compared to theprevious year.127.32Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2011 2012136.03125.06 125.023. Financial & Insurance activities andreal estate services ranks 3rd with (8.5%)percentage contribution, which is equivalent to18.1 Trillion ID, thus recording increase rate of(16.5%) compared to the previous year.4. Hotels, Wholesale & single trade sector ranks4th with (6.6%) percentage contribution, whichis equivalent to 13.9 Trillion ID, thus recordingincrease rate of (14.5%) compared to theprevious year.5. Building and Construction sector ranks 5thwith (4.9%) percentage contribution, which isequivalent to 10.5 Trillion ID, thus recordingincrease rate of (18.7%) compared to theprevious year.6. Transport, Storage and Communicationssector ranks 6th with (4.9%) percentagecontribution, which is equivalent to 10.3 TrillionID, thus recording increase rate of (10.1%)compared to the previous year.7. Agriculture, Forestry and Fishing sector ranks7th with (4.2%) percentage contribution, whichis equivalent to 8.8 Trillion ID, thus recordingincrease rate of (5.3%) compared to theprevious year.8. Manufacturing industry sector ranks 8thwith (1.8%) percentage contribution, which isequivalent to 3.9 trillion dinars, thus recordingincrease rate of (5.5%) compared to theprevious year.9. Electricity and Water Sector ranks 9th with(1.3%) percentage contribution, which isequivalent to 2.7 trillion dinars, thus recordingincrease rate of (8.5%) compared to theprevious year.Managing the trading sessionsIraq stock exchange organized (230) sessionson 2012 in weekly average five regular tradingsessions from Sunday to Thursday plusadditional trading times as follows:Clearing and settlementISX trading rules for transactions clearing andsettlement are as follows:1-Brokers must know numbers of shares for theseller before entered the orders in the systemT+0.2-Buyers must deposit the shares value inthe settlement bank before submitting hisorder. Operation department in ISX update theinformation for buyers based on the investoraccount shown in daily settlement bank report.ISX price index and trading shares price limits:1. ISX price index:By follow up ISX price index for trading sharesprice:-On 2010 ISX price index closed on (100, 98)points.CONTACT INFORMATIONContact Name Ms. Jimmy Afham Toma E-mail jimmy-afham@yahoo.com Website www.isx-iq.netPAGE 47
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JUNE 2013 - FEAS

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