Fuelled by expectations of the imminent opening of the hitherto closed doors of the ISX to non Iraqi investors, the market continued its upward surge for the eleventh trade session this month

ISX, Faith in a volatile market, September 04 2007

For veteran local investors in the Iraqi bourse it was just another day of trade. Not many eyebrows were raised when in two hours of thin trade today, September 04 2007, some 2.5% of the value of listed stocks was wiped out. The downturn has eaten up in four weeks almost 12% of market value from a peak of $1.8 billion early August when the market opened its doors to foreign investment to today’s value of $1.56.

	current session	previous session	%change
Market Volume Traded (shares million)	677.73	304.01	122.93
Market Value Traded (ID m)	862.96	440.83	95.76
Market Capitalization (ID billon)	1965.54	2014.67	-2.44
Number of Transaction	251	163	53.99

Market Value Traded ($m)	0.6849	0.34986	95.76
Market Capitalization ($billon)	1.560	1.60	-2.44

Big Iraqi investors with multi million dollar portfolios know too well, if only by experience, that sharp fluctuations are only transient. When superimposed on a long term trend, few years long, these variations are easily smoothed out by a rewarding rising trend securing their long term investment a healthy and decent return.

Speculators in the bourse, and the ISX is not short of them, are typically smaller investors who play the market for the short kill. The high risk they take could result in high losses or high profits. But they too have learnt that if they do not stretch themselves too far, their short term losses may well be outweighed by the profits of the next round of fluctuation. Indeed this is very much in the nature of a small emerging thin market which is yet to reach a level of maturity. The Iraqi bourse which one day will correctly mirror the actual strength of the Iraqi economy promises ample returns only for those prepared to sit it out and stay on course long enough to reap these benefits.

DISCLAIMER: This document has been compiled and issued by Kubba Consultants, which has obtained the information from sources it believes to be reliable, but Kubba Consultants makes no guarantee as to either its accuracy or completeness and has not carried out an independent verification. Kubba Consultants accepts no responsibility or liability for losses or damages incurred as a result of opinions formed and decisions made based on information presented in this report. This document is not an offer to sell or solicitation to buy any securities. The opinions and estimates expressed herein are those of the issuer.