Posted on 12/19/2005 6:47:37 AM PST by HundredPercenter
It appears the Iraqi stock market (ISX), is down approximately 25% in 2005, as most would expect-- considering its investors have to endure daily acts of terrorism. However, rough estimates indicate the Iraqi market had doubled in the first half of 2004, sold off, and then finished up 30% for the year. So, this year's loss merely cancelled out last years gain.
As one would imagine, it is very difficult to retrieve, live, accurate data, regarding the Iraqi exchange. However, despite all the violence and growing pains the exchange faces, the dedicated Iraqi brokers manage to keep the exchange running smoothly.
Due to security precautions, the exchange is available for trading only two days per week, 4 hours total. Its new facilities are located in a Christian part of Baghdad, behind heavily armed guards and concrete blast proof walls.
The trading volume is handled by approximately 50 brokers, who write current quotes on a white board-- electronic trading is supposed to be implemented sometime next year. The dollar equivalent trading value, per day, is 1.5 million dollars--making the ISX one of the smallest exchanges in the world. However, its CEO, Taha Ahmed Abdul Salam, has big plans for expansion.
Once trading is automated, Salam will push for the privatization of Iraq's state owned companies, in particular oil companies. A move, that will dramatically increase the market capitalization of the ISX.
The real question is, considering the stellar performances of other middle eastern stock exchanges this year, ( Saudi Arabia + 101%, Bahrain +18%, Egypt +127%, Jordan +97%, Kuwait +74%, Lebanon +89%, Oman +25%, Palestine +316%, Qatar +101%, and UAE +107% ) is Iraq a buy?
Naturally, before investing in Iraq, most big investors would like to see the suicide death squads eliminated.
(Excerpt) Read more at wealthmanagementcenters.com ...
That they even have an operating exchange at this stage in their liberation is exceptional.
Hmmm - what is up with that? Are most of the brokers Christians - as the Christians in Iraq tend to be of the merchant class...
Wonder what they trade on the Palestite stockX
Once trading is automated, Salam will push for the privatization of Iraq's state owned companies, in particular oil companies.
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This would be the best thing to happen to Iraq. Oil needs to get out of the hands of govenrment.
You can open a ISE account at Al Worka Bank and they will broker for you. I have had this account for a year. They pay 8% intrest on the account balance. The exchange rate is 1460 IQD per dollar.
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