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, Banking may lead recovery, September 23 2007

The downturn of last August that wiped nearly 17% of the value of the small Iraqi bourse seems to be over with the market reaching the bottom floor and clear signs of a likely modest recovery are now in the offing. The slide seems to have stopped with banking poised to lead a recovery.

Improved trade volume in the last two trade sessions, around $0.65 million, which is double the previously depressed levels, point to a likely recovery. A calmer Baghdad with improved security levels will help initiate an upturn. No bad political news will also help. If the long awaited promise to introduce automation is fulfilled soon by the management of the exchange, it will help generate a sustained improvement.

Indeed on trade day of September 23, 2007, the market not only stopped the decline but actually reversed direction making an almost 1% recovery. Market capitalization value at close market prices climbed to $.1.588 billion. Banking composed much of the gain. None of the banks lost any grounds during the last trade sessions and six of those traded achieved gains. For example the stocks of the Commercial Bank were up by as much as 6% closing at ID1.8. Those of Mosul Bank, Basra Bank and Babil Bank were up by 4%. The shares of Baghdad Bank were up to ID2.65 representing a 2% gain. In all the value of 601 billion banking shares belonging to 19 private listed banks was up by 1.3%.

Banking stock accounts for nearly 75% of the total market. During last trade session 410 million shares were traded for a total value of ID687 million. There were 163 contracts struck during the short two hour trade session.

	current session	previous session	%change
Market Volume Traded (shares million)	517.57	599.62	-13.68
Market Value Traded (ID m)	818.41	825.80	-0.90
Market Capitalization (ID billon)	1985.15	1966.81	0.93
Number of Transaction	231	231	0.00

Market Value Traded ($m)	0.654	0.660	-0.90
Market Capitalization ($billon)	1.588	1.57	0.93

There was little trade outside banking to report other then significant activity in the stocks of the Baghdad Beverages, a bottler of Pepsi Cola with many large plants in Baghdad. There were some 51 contracts involving the shares of this company. Some 73 million shares exchanged hands at a steady price of ID1.1.2.

With 60 billion shares outstanding the market value of the company is ID 72 billion or $58 million. Many financial analysts believe that the real net worth of this company is no less then $100 million.

Market Breadth
Advancers	10
Decliners	5
Unchanged	16
Total Traded	31
Total not Traded	63
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.