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, Market below $1.5 billion floor, October 28 2007

Persistent downward pressure in the Iraq Stock Exchange forced prices down again today, 10/28/007, bringing total market value below the $1.5 billion floor despite the rise in the number of shares traded and the volume of money exchanging hands.

Reports out of the ISX trade hall indicate that the shares of 27 companies listed in the exchange were traded today. Only five companies ended the trade session up. Nine companies lost ground and the rest, 13, maintained previous close. In all, some 842 million shares were traded which is up from previous session by 28%. The total value of trade, carried out in 205 contracts, was also up by nearly 10% to ID 1,714 million or the equivalent of $1,371 million which is way above the recorded average in the last few months of trade.

Nevertheless, the net effect of changing prices was a loss of 0.5% of total market value at closing prices. Total market value slipped to $1.496 million or ID1,869 million.

	current session	previous session	%change
Market Volume Traded (shares million)	842.12	657.02	28.17
Market Value Traded (ID m)	1714.29	1567.03	9.40
Market Capitalization (ID billon)	1869.85	1879.71	-0.52
Number of Transaction	205	201	1.99
Market Value Traded ($m)	1.3714	1.25362	9.40
Market Capitalization ($billon)	1.496	1.50	-0.52

Trade in the shares of private banks listed in the exchange was overwhelming, 96% of total market turnover. Within banking, trade in the shares of Kurdistan Bank was prominent. Over 500 million shares changed hands in only three contracts at a steady price of ID2.4 per share.

With an outstanding number of shares equal to 50 billion these transactions represent a significant 1% change in the structure of its ownership. The ISX has been witnessing a flow of such transactions the latest of which was when one week ago 6% of the shares of yet another bank, the Middle East Investment Bank changed hands.

There is no way of knowing whether these transactions represent post-facto registration of shares reflecting transactions that were concluded any time in the past. The official market brief from the ISX says foreign traders concluded only five transactions in today’s trade, none of them involving the shares of the Kurdistan Bank. It is thus safe to assume that 1% change in ownership, worth $1 million, of the Kurdistan Bank involved Iraqi investors. This is a good measure of the growing financial capacity of local investors.

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.