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 trade, Take over of a local investment company, September 13 2007

On the first day of the fasting month, Ramadan, trade in the Iraq Stock Exchange was generally subdued. There was one significant exception however. In two special transactions 70% of an investment company, Qimma for Investments was sold, to foreign investors according to unconfirmed reports. Some 350 million shares out of an outstanding number of shares equal to 500 million was sold at a price of ID1.55 for a total of ID542 million or $433,000. The Company’s only activity is investment in the Iraq Stock Exchange and according to the antiquated Financial Investment Law, the company like others in this field are not allowed to establish public funds. Such companies are permitted to invest only their paid up capital in the ISX. Currently there are no regulations to speak of that organize and oversee the establishment of public funds. Analysts say this is one of the major areas of reform that needs to be introduced in the capital market. The current Interim capital market law does not cover this activity. No one among the public has yet seen or been able to comment on a new draft of a permanent securities law which is said to cover this area. The said legislation being prepared by US advisors is kept secret from the public. Neither the ISX nor the Securities Commission has made public comments on this matter. Meantime public funds devoted to the ISX are being formed and registered outside Iraq. They plan simply to enter Iraq as a foreign investor.

Other trade was minimal perhaps because of the fasting month. Total trade volume including the take over transaction of the Qimma was ID981 million or $0.785 million. The total number of transactions was considerably down to only 153 million shares. Prices remained steady with total market capitalization just under $1.6 billion or ID1,998 billion. There were some 27.35 million shares that exchanged hands in nine transactions.

Market Volume Traded (shares million)	626.13	390.99	60.14
Market Value Traded (ID m)	981.58	638.96	53.62
Market Capitalization (ID billon)	1998.73	2002.85	-0.21
Number of Transaction	153	254	-39.76

Market Value Traded ($m)	0.7853	0.51117	53.62
Market Capitalization ($billon)	1.599	1.60	-0.21

Trade in Banking stocks was carried out through 90 transactions with a total value of ID394 million. In all twelve bank shares were traded. Seven of these ended trade unchanged, Three were up and two down. Total market capitalization of the whole banking sector, 19 listed banks, was equal to ID 1,474 million or the equivalent of $1.18 billion making up 74% of the whole ISX value. The stocks down include those of the Islamic Bank, falling by 5% to ID1 per share. This is exactly equal to the par value of the bank’s outstanding shares equal to 25.6 billion shares. The Mosul Bank, which recently offered a free 15% split, was down by 4% to ID1.25. Nearly 90 million shares exchanged hands of this stock in 15 transactions. The Credit Bank, owned by NBK of Kuwait, was up by 3% closing at ID 4. The bank has 25 billion shares outstanding. Sumer Bank owned by a local Iraqi businessman was up by 5% to ID1.1. The bank has nearly 17 billion shares outstanding. Babil Bank closed up by 5% at ID1.4. The bank has 30 billion shares outstanding.

Market Breadth
Advancers	6
Decliners	8
Unchanged	16
Total Traded	30
Total not Traded	64
Total	94

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.