In August, the Rabee Securities Iraq Stock Exchange Index (RSISX Index) surged by 4.0%, standing out against declines in several regional markets like Abu Dhabi (-2.7%), Kuwait (-2.2%), Saudi Arabia (-2.0%), Dubai (-1.6%), and Bahrain (-1.4%). This growth was primarily driven by the National Bank of Iraq, Bank of Baghdad, Iraqi Islamic Bank, and Baghdad Soft Drinks.
During the month, two non-RSISX Index businesses distributed dividends: Baghdad Hotel with a 4.2% yield and National for Tourist Investments with a 1.8% yield.
Trading activity saw a significant uptick, with the total Iraq Stock Exchange (ISX) volume more than tripling month-over-month to $77.6 million, largely due to cross transactions in the banking sector. Even excluding these, the monthly trading volume rose by 26% to $31.7 million. The banking sector dominated, accounting for 87.8% of total trading, followed by industry (6.2%), telecom (3.5%), agriculture (1.5%), services (0.6%), and hotels & tourism (0.3%). Conversely, OTC market trading plummeted 86% to $37.4K.
Share prices increased for 29 companies in August, with 18 climbing by over 5.0% and 11 soaring by more than 10.0%. Al-Badia for General Transport led this surge with a 52.2% rise, followed closely by Fallujah for Construction Materials at 50.0%.
Tugba Tan Karakaya, Equity Analyst at Rabee Securities
Tugba Tan Karakaya, an Equity Analyst at Rabee Securities, remarked: “August was a robust month for the Iraqi market, with the banking sector’s momentum boosting both index performance and trading volumes. The market’s resilience is notable amidst regional declines, and dividend payouts along with Iraq’s comprehensive economic reforms are bolstering long-term investor trust.”
August also saw significant national developments: Iraq introduced its 2024–2028 economic development strategy, targeting a reduction in unemployment from 13% to 10% and a decrease in the oil sector’s GDP contribution by up to 25%. Standard & Poor’s (S&P) maintained Iraq’s credit rating at B-/B with a stable outlook, and the Association of Private Iraqi Banks announced the issuance of over 18 million electronic payment cards nationwide.
