As many may know that Iraq's markets considered to be as one of the scariest high risk markets of the world despite the fact that it is a very small market, but still its Iraq, where corrupted contracts nets billions of dollars each year. Imagine them being invested in the right places for the past 8 years. So high risk market with the potential of a BIG BANG BOOM in any second, is worthy.
As of tomorrow the 9th of August 2011, 23 companies will be suspended trading in Iraq stock market ISX due to failing to file reports of audit.
The decision has been issued since the 3rd of August 2011, published on the ISX webportal on the 7th of August 2011, and active from the 9th of August 2011. Gutted by such delays which screams only on thing, NO RESPONSIBILITY what so ever from the authorities side. Just when all seemed white and smooth they felt like they had to do something to ruin this tiny bit of hope of advanced market security. Just when the market was about to make a bold statement that all things are good, and we are on a stabilized path, with relatively good numbers and we are ready to take in big investments. This delay of action will cost us a lot in the near & far future.
Simply these companies can be a scheme, or bankrupted, or up in debt, or even leveraging more than the reasonable amounts, yet they still be traded for an extra 3 days. What message does that exactly sends to the normal investor? The ISX has failed to protect investments and cause the market unnecessarily unrest. Not safe outside, not safe inside. Not that much of an eye catching policy as investors want to feel that they are putting their money in safe environment, at least by the regulator.
-Company and market performance for this month so far, before these companies get the suspensions:
Now after throwing some numbers around here and here I have the next results.
From August 2nd - 8th of August.(Average week)
These companies combined made :
1- Deals : 887 deals of 1,974 in total , 44.93%
2- Shares traded : 1,645,242,821 shares of 3,535,036,691 shares in total , 46.54%
3- Turnover : 2,765,231,929 Iraqi Dinars (2,358,172$) of 6,441,262,985 Iraqi Dinars (5,507,838$) , 42.79 %
That is somehow a big blow for the ISX, and we'll see how the upcoming days will go.
Personally I think that we might see more green on the ISX index, although not much turnovers because Summer Commercial Bank is one of the most active stock - if not the most active - in ISX. I hope it all sort out as fast as possible so we can see more progress in the near future.
As it sounds for the moment, the effect will mostly be on the turnovers and creditability of the ISX administration.
As of tomorrow the 9th of August 2011, 23 companies will be suspended trading in Iraq stock market ISX due to failing to file reports of audit.
The decision has been issued since the 3rd of August 2011, published on the ISX webportal on the 7th of August 2011, and active from the 9th of August 2011. Gutted by such delays which screams only on thing, NO RESPONSIBILITY what so ever from the authorities side. Just when all seemed white and smooth they felt like they had to do something to ruin this tiny bit of hope of advanced market security. Just when the market was about to make a bold statement that all things are good, and we are on a stabilized path, with relatively good numbers and we are ready to take in big investments. This delay of action will cost us a lot in the near & far future.
Simply these companies can be a scheme, or bankrupted, or up in debt, or even leveraging more than the reasonable amounts, yet they still be traded for an extra 3 days. What message does that exactly sends to the normal investor? The ISX has failed to protect investments and cause the market unnecessarily unrest. Not safe outside, not safe inside. Not that much of an eye catching policy as investors want to feel that they are putting their money in safe environment, at least by the regulator.
-Company and market performance for this month so far, before these companies get the suspensions:
Now after throwing some numbers around here and here I have the next results.
From August 2nd - 8th of August.(Average week)
These companies combined made :
1- Deals : 887 deals of 1,974 in total , 44.93%
2- Shares traded : 1,645,242,821 shares of 3,535,036,691 shares in total , 46.54%
3- Turnover : 2,765,231,929 Iraqi Dinars (2,358,172$) of 6,441,262,985 Iraqi Dinars (5,507,838$) , 42.79 %
That is somehow a big blow for the ISX, and we'll see how the upcoming days will go.
Personally I think that we might see more green on the ISX index, although not much turnovers because Summer Commercial Bank is one of the most active stock - if not the most active - in ISX. I hope it all sort out as fast as possible so we can see more progress in the near future.
As it sounds for the moment, the effect will mostly be on the turnovers and creditability of the ISX administration.
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