ISX registers five point loss, foreign investment shrinkage

BAGHDAD / IraqiNews.com: The Iraqi Stock Exchange index (ISX) lost another point closing at 50.341, unleashing fears that an absence of adequate rules and administrative routine might hamper the progress of financial markets in a country eying foreign investment for reconstruction. Tuesday’s session saw a five point loss, with the ISX closing at 50.341, one point less than the previous session which closed at 51.362. Traded shares in this week exceeded 486 million at a total value of over 765 billion Iraqi dinars (nearly $ 648.3 thousand) through implementing 241 contracts.  The banking sector achieved the highest trading volume. “The fluctuation in prices lies in no definite percentage for any rises or falls having been set by the stock exchange board,” Investor Habib Yaqou said. He proposed “setting 5 percent as a limit to avoid any sharp increases or declines.” Trading for non-Iraqi investors exceeded 152 million dinars (nearly $106.000), through implementing 26 contracts in the banking, industrial and hotels sectors, registering a drop despite expectations they would seek Iraqi bourse unaffected by the global financial crisis. Investor Mohamed al-Fatlawi held the Stock Exchange Board responsible for the weak participation of foreign investors in the Iraqi stocks. “The Board treated Iraqi markets as if circumstances are normal like other countries,” he said. “It must lure foreign investors by ensuring participation in the Iraqi market outweighs any danger that may face foreign traders in security-scarred country.” “The lure centers around facilitating procedures in the central bank, softening routine measures, and lifting the 49 percent set for foreign investors,” he added. AM (S)/SR 1