Iraq Stock Exchange
Encyclopedia
The Iraq Stock Exchange (ISX), formally the Baghdad Stock Exchange, is a stock exchange
in Baghdad
, Iraq
.
The Iraq Stock Exchange was incorporated and began operations in June 2004. It operates under the oversight of the Iraq Securities Commission
, an independent commission modeled after the U.S. Securities and Exchange Commission. June Reed is an American adviser to the stock exchange.
Before the 2003 invasion of Iraq
, it was called the Baghdad Stock Exchange and was operated by the Iraqi Ministry of Finance. Now it is a self-regulated organization similar to the New York Stock Exchange
, owned by the 50 or so member brokerages.
As of 2005, the ISX was Iraq's only stock exchange. It opened in 2004 with 15 companies, and now lists more than 100 companies. Turnover of shares in 2005 was approximately $5 million USD per trading session. Major stocks included Bank of Baghdad
, Baghdad Soft Drinks Co
, Iraqi Tufted Carpets Co, Hader Marble, and Altherar Agriculture.
Aswat al-Iraq
news agency covers every trading session with reports published on the web in English and Arabic
s that listed each company's share buy and sell price.
That changed in February 2009, when for the first time since it was launched in the mid-1990s, the Iraq Stock Exchange announced that it would have a computerized system to show the movement of shares. Iraqi Exchange and Securities Commission Chairman Abdul-Razzak al-Saadi said that the new system would replace two blackboards that are manned by personnel using chalk to record all changes. Al-Saadi said a $7 million grant from international donors enabled the stock exchange to buy the electronic system.
Trading was suspended for several months in 2006 due to violence, and is subject to power outage
s.
In 2006 92 trading sessions were held (an average of 2 per week), 57 billion shares were traded (at a value of 146 billion dinar
s), and 38,000 trades were consummated. The trading floor is currently open six hours a week: Sunday, Tuesday, and Thursday from 10:00 a.m. to 12:00 noon.
The ISX opened to foreign investors on August 2, 2007. The market is dominated by a handful of wealthy Iraqis, many of whom live outside the country and call in their orders by phone to brokers, says Taha Abdul Salam, the exchange's CEO. Foreign investors in late 2008 accounted for less than 20% of activity.
The ISX has been unaffected by the Economic crisis of 2008.
On April 19, 2009, the ISX switched to electronic trading. Currently, only five companies are available for electronic trading, but more will be added over the next few months.
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
in Baghdad
Baghdad
Baghdad is the capital of Iraq, as well as the coterminous Baghdad Governorate. The population of Baghdad in 2011 is approximately 7,216,040...
, Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....
.
The Iraq Stock Exchange was incorporated and began operations in June 2004. It operates under the oversight of the Iraq Securities Commission
Iraq Securities Commission
Iraq Securities Commission, ' is an independent public commission that oversees the activities of licensed securities markets, one of which is the Iraq Stock Exchange.-External links:*...
, an independent commission modeled after the U.S. Securities and Exchange Commission. June Reed is an American adviser to the stock exchange.
Before the 2003 invasion of Iraq
2003 invasion of Iraq
The 2003 invasion of Iraq , was the start of the conflict known as the Iraq War, or Operation Iraqi Freedom, in which a combined force of troops from the United States, the United Kingdom, Australia and Poland invaded Iraq and toppled the regime of Saddam Hussein in 21 days of major combat operations...
, it was called the Baghdad Stock Exchange and was operated by the Iraqi Ministry of Finance. Now it is a self-regulated organization similar to the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
, owned by the 50 or so member brokerages.
As of 2005, the ISX was Iraq's only stock exchange. It opened in 2004 with 15 companies, and now lists more than 100 companies. Turnover of shares in 2005 was approximately $5 million USD per trading session. Major stocks included Bank of Baghdad
Bank of Baghdad
The Bank of Baghdad is one the largest commercial banks in Iraq. It was established in 1992.Bank of Baghdad is a member of KIPCO group and enjoys international banking partnerships throughout the Middle East, North Africa, and further afield to Europe, United States of America, United Kingdom, and...
, Baghdad Soft Drinks Co
Baghdad Soft Drinks Co
Baghdad Soft Drinks Co is a Soft drinks Bottling company in Iraq.It is the company that has the exclusive licence to sell Pepsi products in Iraq....
, Iraqi Tufted Carpets Co, Hader Marble, and Altherar Agriculture.
Aswat al-Iraq
Aswat al-Iraq
Aswat al-Iraq is an independent national news agency in Iraq, established in 2004. Funded by the United Nations Development Program , and with training assistance from the Reuters Foundation , it produces over 60 stories a day in Arabic, some 20 to 25 in English and 15 to 20 in the Sorani dialect...
news agency covers every trading session with reports published on the web in English and Arabic
Growth
Trading was with pen and paper. Buyers shouted at or called into their brokers, who stood near their whiteboardWhiteboard
A whiteboard is a name for any glossy, usually white surface for nonpermanent markings. Whiteboards are analogous to chalkboards, allowing rapid marking and erasing of markings on their surface...
s that listed each company's share buy and sell price.
That changed in February 2009, when for the first time since it was launched in the mid-1990s, the Iraq Stock Exchange announced that it would have a computerized system to show the movement of shares. Iraqi Exchange and Securities Commission Chairman Abdul-Razzak al-Saadi said that the new system would replace two blackboards that are manned by personnel using chalk to record all changes. Al-Saadi said a $7 million grant from international donors enabled the stock exchange to buy the electronic system.
Trading was suspended for several months in 2006 due to violence, and is subject to power outage
Power outage
A power outage is a short- or long-term loss of the electric power to an area.There are many causes of power failures in an electricity network...
s.
In 2006 92 trading sessions were held (an average of 2 per week), 57 billion shares were traded (at a value of 146 billion dinar
Dinar
The dinar is the official currency of several countries.The history of the dinar dates to the gold dinar, an early Islamic coin corresponding to the Byzantine denarius auri...
s), and 38,000 trades were consummated. The trading floor is currently open six hours a week: Sunday, Tuesday, and Thursday from 10:00 a.m. to 12:00 noon.
The ISX opened to foreign investors on August 2, 2007. The market is dominated by a handful of wealthy Iraqis, many of whom live outside the country and call in their orders by phone to brokers, says Taha Abdul Salam, the exchange's CEO. Foreign investors in late 2008 accounted for less than 20% of activity.
The ISX has been unaffected by the Economic crisis of 2008.
On April 19, 2009, the ISX switched to electronic trading. Currently, only five companies are available for electronic trading, but more will be added over the next few months.
See also
- Economy of IraqEconomy of IraqIraq's economy is dominated by the petroleum sector, which has traditionally provided about 95% of foreign exchange earnings. In the 1980s, financial problems caused by massive expenditures in the eight-year war with Iran and damage to oil export facilities by Iran led the government to implement...
- List of Mideast stock exchanges
- Development Fund for IraqDevelopment Fund for IraqIn May 2003, following the invasion of Iraq in March of that year, the Central Bank of Iraq-Development Fund for Iraq account was created at the U.S. Federal Reserve Bank of New York at the request of the Coalition Provisional Authority Administrator...
- 2010 Baghdad church attack2010 Baghdad church attackThe 2010 Baghdad church attack was an attack on the Our Lady of Salvation Syriac Catholic cathedralof Baghdad, Iraq, that took place during Sunday evening Mass on October 31, 2010. The attack left at least 58 people dead, after more than 100 had been taken hostage...