Rabee Securities' Iraq Stock Exchange Index reports 17.6% growth in October

Rabee Securities has announced a substantial growth of 17.6% in the Rabee Securities Iraq Stock Exchange Index (RSISX Index) for October 2024. This increase reflects the robust performance across all ten RSISX Index companies, with significant contributions from major players such as Bank of Baghdad, National Bank of Iraq, Al-Mansour Pharmaceuticals Industries, Al-Mansour Bank, and Commercial Islamic Bank of Iraq.

The RSISX Total Return (RSISXTR) Index reported even greater growth, with an 18.7% increase in October. This higher rate was primarily due to the absence of the diminishing impact from Asiacell’s recent dividend payout of IQD 1.00 per share, which provided an 8.8% dividend yield. Asiacell was the only company to declare dividends during the month, further strengthening returns for shareholders.

The Iraq Stock Exchange (ISX) recorded a 50% increase in total trading volume, amounting to $ 62.9 million in October. Excluding cross transactions, trading volumes rose by 19% to reach $ 40.8 million. The banking sector continued to dominate trading activity, accounting for 66.8% of the total volume, followed by the telecom sector at 13.5%, industry at 13.0%, agriculture at 3.5%, hotels and tourism at 2.0%, and services at 1.2%.

In a notable development, the first trade on the ISX’s new Over-the-Counter (OTC) market occurred in October. Launched on January 2, 2024, the OTC market is designed as a platform for unlisted joint stock companies, with six eligible companies now trading on it. The OTC market’s total trading volume in October reached $ 1.1 million, underscoring the expanding opportunities within Iraq’s financial market infrastructure.

October saw remarkable price gains, with 45 companies’ share prices increasing during the month. Notably, Babil Animal & Vegetable Production recorded the highest growth, with its share price rising by 200.0%, followed by Iraqi Date Processing & Marketing with an impressive 83.1% increase. Among the companies experiencing growth, 36 posted increases of over 5%, while 28 exceeded a 10% rise in share price, demonstrating broad-based confidence in the market.

October also marked significant developments for Iraq on the economic and political fronts. The Iraqi Cabinet approved an increase in Iraq’s quota at the International Monetary Fund (IMF) by 831.9 million Special Drawing Rights (SDR), equivalent to IQD 1.45 trillion ($ 1.1 billion) as of October 8, 2024. This adjustment represents a 50% increase in Iraq’s previous quota, enhancing the country’s voting power within the IMF. Additionally, the Iraqi Council of Representatives elected Mahmoud Al-Mashhadani as its new speaker, a milestone in Iraq’s political landscape after nearly a year of stalemate.

Rabee Securities remains optimistic about the continued growth of Iraq’s stock exchange, supported by strong performance across various sectors, expanding market platforms, and the country’s efforts to strengthen its financial and political foundations. With ongoing developments and investor interest, Iraq’s stock market is poised to further establish itself as a vital player in the region.