Iraq stock market. The last place to trade "fils" and its "black" market defraud the price of the dollar
2023-09-09 | 21:11
Economists said that the Iraq Stock Exchange relies on the shares of leading companies such as the Babel Hotel and Pepsi, while most other offered institutions sell their shares at a low price less than a dinar, so that the value is recorded in "fils", a currency that has not been in circulation for many years.
Duraid Al-Enezi – Securities expert for Network 964:
The stock market in Iraq is emerging but is active.
– The market was established in the time of the former regime, but it was established with small amounts of money because Iraq was going through an economic blockade.
After 2003, the market witnessed a reactivation as it shifted from a centralized system to a market and stock system.
– The stock market suffers because it does not contain sufficient industrial and agricultural companies and depends on trade, banks and some hotels.
– The prices of the leading shares (the most popular), do not exceed 10 dinars per share, while the majority of shares are sold at "fils".
– The market suffers from multiple problems, for example, if the manager of a joint stock company rehabilitates the company or even buys a car for the company, these expenses are deducted from the dividends of its shareholders.
– The market also suffers from limited profitability compared to stock exchanges in the countries of the region, which rely on a solid economic strategy and work in various fields.
Another controversial issue is that companies these days are not officially selling their shares, but rely on a recently emerging black market. Official direct selling is based on the official exchange rate, while the black market sells shares at the dinar rate traded in exchanges.
The issue of the dollar and its price fluctuations have significant effects on the stock market as the sudden decision to devalue the dollar by the government inflicted millions of dollars in losses on the stock exchange.
Bassem Antoine, an economist for Network 964:
– The stock market in Iraq needs significant development at the level of management and heads of companies that offer shares on the stock exchange.
– The fluctuation of the price of shares includes many companies participating in the stock exchange as some shares are sold for 150 fils.
There are more than 120 companies that offer shares on a daily basis for sale on the stock market.
Government support for this market is weak, although a boom in the market can have significant positive effects on the country's economic reality.
– There are a few companies that maintain their market value, such as the Babylon Hotel and Pepsi, and this came against the background of the economic management of these companies.
– The fluctuation of dollar prices has significant negative effects on the market as it devalues the dinar and thus the value of companies' shares declines. LINK
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