Iraqi Stock Exchange need more incentives to attract investments

2016-04-09 02:46:34 | (Voice of Iraq) - BAGHDAD - Adel Mahdi

Interested in investment activity in the Iraqi Stock Exchange said that the weakness recorded profits due to stock trading , buying and selling, is one of the reasons for the reluctance of the public about the indirect investment in the Iraqi market for securities, as well as lack of awareness and lack of experience in this area, what is devoted preference for investment of fixed assets, real estate and other .

This is linked mainly ambitiously large number of citizens to double profits and get quick gains through direct investment and indirect types, but the latter type of investment facing challenges , most notably stock price annual or quarterly profits. And calls for a large part of investors to reconsider the share price in the stock market, as seen by a number of citizens is not encouraging.

Some investors pointed out that the supply of equity often required larger, and came as a result of increasing banks' capital to 250 billion dinars ($ 210 million), reflecting the negative impact on stock prices. It considered among concerned that some companies share price is still below one dinar, while the shares of other companies prices of four dinars. She added that the share price in the stock market is not encouraging, calling to reconsider it in line with the ambition of investors, as well as to increase it will contribute to attracting a larger number of investors, whether local or foreign.

The executive director of the Iraqi market for securities , Taha Ahmed Abdul Salam said that «stock prices are also affected by a decline of performance indicators for companies to contribute to 2015, and its reflection on the size of profits and dividends between the shareholders due to increases unexplained in the companies ' capital, especially in the banking sector, which led to the that earnings per share will be low because of the increased number of shares outstanding. »

He pointed out that «not to add services or new products acceptable to the Iraqi consumer specifications under the import policy is disciplined by the private sector, contributed to influence the stock prices», a proposal to implement measures to attract investment into the economy, including follow - up and monitor the performance of joint - stock companies according to the universal standards of before regulators all, and follow - up the percentage of its declared plans done, and attention to disclose annual and quarterly annual and half ».

He stressed the importance of amending the penal laws to include punish defaulting departments and violation of the laws and regulations, and not to punish companies because the fines imposed on the company reduced realized and dividends, and thus its share price fall in the money market.

And the reasons that prevent Arab economic sites of interest bulletin daily trading for the market, at the time published the activities of countries do not have large private companies and economy as an economy of Iraq, Abdul Salam explained that « the shares of Iraqi companies not registered in any international market through the GDR, so do not Price published on international websites. »

He added: «number of investors did not rise in the Iraq Stock Exchange after 2014 for reasons related to lower GDP volume and declining economic indicators, in addition to the economic downturn due to lower private and public spending».

The economic circles stressed the need to be Iraq Stock Exchange label in the national economy, as it reflects the potential for private sector companies to raise the level of GDP by stock indices and volume for trading. She explained that the Iraqi Stock Exchange sought to increase trading volume by raising public awareness through a campaign launched years ago, met with limited success at the time.

And it attributed this to the low stocks that had a lot of citizens are expected to achieve significant profits for them in a short time, despite the fact that a lot of them get a kick out of the idea of indirect investment and the entry of the stock market price.

She stressed economic circles on the importance of the role that Iraq Stock Exchange play in the economy, and its contribution to the promotion of the gross domestic product through its objectives , which include opening the way for the private sector through the launch of the proportion of their capital to the public for trading, and is one of the means of securing funding through the Government Savings.