The Iraq Stock Exchange (ISX) witnessed significant growth in October, with the Rabee Securities Iraq Stock Exchange Index (RSISX Index) recording an impressive 17.6% increase. This gain, underscoring renewed investor confidence, comes after months of relatively stable but modest market performance, highlighting a robust interest across Iraq’s leading financial sectors.
Driven by strong showings from major banking stocks and telecom companies, the RSISX Index’s October growth reflects increased market activity as Iraq’s economy continues to recover from pandemic-related challenges. Major players in the banking sector, such as Al-Mansour Bank, the National Bank of Iraq, and the Commercial Bank of Iraq, reported substantial gains, positioning banking stocks as the driving force behind the index’s rise. Telecommunications giant Asiacell also contributed significantly to the index’s success, underscoring the sector’s role as a stabilizing force in Iraq’s economic landscape.
Analysts attribute the market’s growth to increased trading volumes, reflecting greater domestic and foreign interest in Iraqi equities. Notably, total trading volume in September hit USD 41.8 million, with a particular increase in transactions outside cross-border trades, which surged by 24% to reach USD 31.9 million. The banking sector commanded nearly 72% of the trading volume, followed by telecoms, industry, agriculture, and hospitality, sectors which collectively contributed to this upward trend.
September’s positive momentum set the stage for October’s robust gains, as the ISX benefited from several factors boosting investor sentiment. A significant development involved a strategic partnership between the International Finance Corporation (IFC) and Iraq’s Central Bank to bolster sustainable financing and introduce a roadmap for environmental and social risk management. This initiative, combined with the announcement of an extended U.S.-led international mission in Iraq through 2025, has added a layer of economic stability that investors have been quick to capitalize on.
Rabee Securities, a leading financial services firm in Iraq, has remained optimistic about Iraq’s stock market potential, highlighting the improving fundamentals within the country’s corporate sector. Thirty-five companies saw their share prices increase in September, with 29 stocks climbing by over 5%, including standout performers like Iraqi Engineering Works, which rose by a remarkable 171.4%, and veterinary firm AL-Kindi, which posted a 50.6% increase. These gains helped propel the RSISX Index upward and fueled investor confidence in Iraq’s broader economic growth.
Iraq’s continued focus on sustainable finance and governance has further positioned its capital markets for sustainable growth. The IFC’s seven-year Sustainable Finance Roadmap, now in collaboration with Iraq’s Central Bank, is poised to set new standards in environmental, social, and governance (ESG) principles across Iraq’s banking sector, marking a significant step toward attracting long-term institutional investors focused on sustainable growth opportunities.
