Iraq stock exchange plan to attract savings.

10/08/2016 13:37

The Executive Director of the Iraq market for securities, Taha Ahmed Abdul Salam, the market «four workshops organized in the first half of this year, in order to develop ways of attracting indirect investment, with a view to spreading the culture of indirect investment of all segments of society and attract national savings towards investment in securities, establishment of stock companies and investment trust».

He drew an intervention during a workshop organized by the market, that «the second goal is to build the analytical information centers and information activity directed towards development goals and build the foundations for private sector investment through capital market». He said Iraq's capital market «needed to develop economic activity after the discussed corporate governance contribute to help draft prepared by securities, having analysed corporate performance indicators contribute to the guarantor Bank mechanisms and trading online investors».

The workshop recommended b «importance of completing legislation of rules and instructions consistent with future economic policy and requirements of the desired development according to plans by the market, as well as issuing sober corporate governance rules». The recommendations emphasized the workshop entitled "the role of corporate governance disclosure and contribution rules and the guarantor Bank and trading for investors in attracting investment in securities and finance», «the role of the operational performance of corporations listed in stock price trading calendar». «Companies called attention to show these values in their annual reports.

The Chairman of the Board of Governors of the Iraq market for securities Thaer Hashem, an intervention during the workshop, the market «designed to unite the visions of the draft corporate governance contribute, that is the basis for successful corporate management control and contribution to protect small investors. He stressed "instruct for trading new financial instruments and portfolio management and investment funds to financial investment companies and those banking».

The Iraqi stock exchange looks to regulate securities between buyers and sellers, according to the rules and special instructions are subject to the law of the market number 74, to attract national and foreign direct investment, thereby contributing to increased macroeconomic capital formation. With Iraqi companies contribute to the stock price is 98, and brings the total number of shares to 8.9 trillion. Proportion of banks shares constitute 64 percent of the total, other sectors contributed 36 percent.

Economist Samir Al Nassiri, «life» on the sidelines of the workshop sessions, the economic recession and financial crisis that the Iraqi economy since the year 2014 due to the continuing global oil prices and the costs of the war on terror and other economic accumulations, led to lower GDP growth to 0.5 percent and the unemployment rate rising to 30 percent and poverty by 25 percent and inflation to 2 percent, low saving ratio to the Iraqi Central Bank to 20 percent. And don't overlook the proportion rose to compactness 80 percent of the total money supply to citizens in the form of a toll on the business market.

Al Nassiri drew that all «reduced economic and banking sectors stocks in circulation rates ranged between 50 and 85 percent, and contributed to the scale of the Iraq stock exchange market role in attracting investment and supporting the national economy». In contrast, felt the need to "prepare economic feasibility studies by the corporations to increase their capital to the uses of those increases, giving a clear view of securities and Central Bank prior to the approval of the increases in capital».

«Demanded a system of control and follow up and evaluate corporate performance and identifying kinks which default».