The Rabee Securities Iraq Stock Exchange Index (RSISX Index) reported a 2.9% increase in November 2024, signaling continued positive momentum in Iraq’s financial markets. The growth was primarily driven by the performance of the National Bank of Iraq, Asiacell, and Al-Mansour Bank. During the month, the share prices of five out of the ten companies included in the RSISX Index recorded notable increases, further underscoring the market’s steady recovery. Additionally, dividend announcements by Baghdad Hotel, with a dividend yield of 4.0%, and Ready-Made Clothes, with a yield of 1.1%, added to investor confidence.
Despite the growth in the index, the overall trading volume on the Iraq Stock Exchange (ISX) declined by 17% compared to October, amounting to USD 52.0 million. When excluding cross transactions, the monthly trading volume dropped further by 31% to USD 28.4 million. The banking sector continued to dominate trading activity, accounting for 80.5% of the total trading volume, followed by the telecom sector with 7.9%, the industry sector with 6.6%, the agriculture sector with 3.2%, the hotels and tourism sector with 1.2%, and the services sector with 0.6%. Trading activity in the over-the-counter (OTC) market experienced a significant decrease, falling by 61% compared to October and totaling USD 437.0K.
Investor interest in November remained robust, as the share prices of 31 companies registered increases. Of these, 21 companies saw gains exceeding 5.0%, while 19 recorded increases of more than 10.0%. Babil Animal & Vegetable Production emerged as the top performer, with a remarkable 164.7% growth in share price, followed by Rehab Karbala Company, which posted an impressive 138.3% increase.
November also saw notable developments in Iraq that could shape the country’s economic outlook. Fitch Ratings affirmed Iraq’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘B-’ with a stable outlook, reflecting the country’s progress in financial stability. Additionally, Vodafone received approval from Iraq’s Council of Ministers to operate the national telecommunications network and implement a 5G mobile license project, marking a significant step in the modernization of Iraq’s telecom infrastructure. Iraq also launched its first national census in nearly four decades, with Prime Minister Mohammed S. Al-Sudani announcing a population exceeding 45 million. Moreover, the Ministry of Finance (MoF) released data showing that Iraq’s public budget surplus for the first nine months of 2024 increased by 11% year-on-year to IQD 19.5 trillion (approximately USD 14.9 billion), highlighting improved fiscal management and economic resilience.
The RSISX Index’s performance in November, coupled with key economic and infrastructural advancements, underscores the evolving dynamics of Iraq’s financial landscape. These developments signal strong opportunities for both domestic and international investors, setting the stage for sustained growth in the months ahead. (Zawya)