The Iraq Stock Exchange (ISX)

formally the Baghdad Stock Exchange,

Serious Information

Info on Iraq

The Iraq Stock Exchange began operations in June 2004. It operates under the oversight of the Iraq Securities Commission, an independent commission modeled after the USA. Securities and Exchange Commission.

As of 2005, the ISX is Iraq's only stock exchange. It lists more than 100 companies, and continues to grow rapidly. Turnover of shares in 2005 was approximately 5 million USD per trading session.

For the period from 1992-2003 a market called Baghdad Stock Exchange had worked in Iraq and was well known.

The previous Baghdad Stock Exchange was established by the law No. 24 for year 1991. The market was related to government and was able to list companies, some privates and other from mixed sector.

The ISX is an entity capital market not related or powered by government. It is directed by a Board of nine members representing different economical sectors of investments called the Board Of Governors (BOG).

The market is the place where the investments exchange stocks, purchasing and selling are done. It is considered one of the channels which funds can flow between persons and commission through different sectors that may help to mobilize and develop saves as to give readiness for different investments.

http://www.isx-iq.net/ Website to stock exchange

http://www.isx-data.com/ A website giving updated data info on the Iraqis stock

In 2005 it was reported in the BBC that Iraq's battered contingent of foreign business people have grown well used to making the most of small mercies. Two years after the fall of the Iraqi capital, there were discernible signs of commercial life. But reasons to steer clear seemed to be growing more compelling by the day.

In 2004 on the advice of the US Treasury, the new Iraqi finance minister Adel Mahdi made his first major decision. Iraq decded to launch a bond market, beginning with an issuance of 150bn dinars (£54m, $100m) worth of treasury bills on 18 July. The bills were have a 91-day maturity period and will yield between 5% and 8% annual interest, quite low even by emerging market standards. A bond, or debt, market is one of the three pillars - as well as a stock exchange and a foreign exchange market - of what is generally referred to as the banking system.

Ann Starr, a former official at the Philadelphia Stock Exchange helped advise the Iraqi authorities on stock market issues, and said the new bourse met international standards of transparency. The Liberty Bell replica used in the exchange in 2004 was a donation from the Philadelphia Stock Exchange.

The whitehouse commentated on the reopening of the stock exchange in 2004 as "The private sector was given a boost with the reopening of the Iraq Stock Exchange. On opening day, 589 million shares were traded, and for two weeks the stock exchange has been operating normally. U.S. advisers assisted Iraqi officials in restructuring their country's trading system, and on June 24 there was stock trading in Baghdad for the first time in 15 months. The Iraq Stock Exchange will help development Iraq's economy, especially the private sector."

The ISX was temporarily housed in a converted restaurant. Looters had gutted the old exchange, so traders jostled for position in a long room overlooking an old dining room. Where bartenders once chatted with patrons sidling up for drinks, a bank of secretaries log orders.

The ISX replaces the now-defunct Baghdad Stock Exchange, which was riddled with corruption. Saddam's extended family often muscled in at will by simply issuing new shares for companies they found attractive.

The new exchange has built in safeguards against manipulation. It took about a year to set up, with 12 brokerage houses and banks that own it working alongside former occupation authorities to lay the legal and regulatory framework.

"This is much better than before," said Emad Shakir al-Baghdadi, a broker with the Okaz Co. firm. The removal of a 5 percent cap on price swings has added tremendous credibility and liquidity to the market, he added.

In 2004 Kubba Consultants set up reporting group. At the end of every trading session, a unique market was to report on the most actively traded stocks on the Iraq Stock Exchange (ISX) reported by Kubba Consultants. Kubba Consultants was established in Baghdad, Iraq in 1989 by a group of British educated professionals with disciplines in Economics, Business administration and Engineering. The firm established its reputation as prominent financial and business consultants in Iraq providing extensive services to private businesses and public departments. In 1995, the group diversified its activities through a subsidiary group, Al-Aman Investments, making an entry into the Iraq Stock Exchange and the newly emerging financial market in Iraq.

In 2006 USA today reported that the stock exchange is open for two hours a day, twice a week. So don't stop to watch clock tick tock.

Operations recently moved into a heavily guarded building surrounded with thick concrete blast walls. "The exchange lists 93 companies today and averages between $1.35 million and $2 million in daily volume," says Taha Ahmed Abdul Salam, the exchange's chief operating officer. Another drag on the market is the delay in implementing a law that would allow foreign investors to purchase Iraqi shares.

Info on Iraq

Though free from the yoke of its former president Saddam Hussein, pressing problems loom large for Iraq and its new leaders.
Their paramount challenges include the restoration of civil order, reconstruction and the completion of a political transition.

There are more than 100 newspapers and magazines on offer in Baghdad and other cities and private radio and television stations have mushroomed. Sectarian tensions between Shia and Sunni Muslims have spilled over into violence.

Population: 26.5 million (UN, 2005)
Area: 438,317 sq km (169,235 sq miles)
Capital: Baghdad
Major languages: Arabic, Kurdish
Main religion: Islam
Life expectancy: 57 years (men), 60 years (women) (UN)
Monetary unit: 1 Iraqi dinar = 1,000 fils
Main exports: Crude oil
GNI per capita: n/a
Internet domain: .iq
International dialling code: 964

Trivia

In Germany a sock exchange has opened that discusses soccer.

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