Iraq Securities Commission: great efforts to make indirect investment success

Chairman of the Securities Commission, Faisal Al-Haimus, revealed that the Commission's efficiency in activating trading in securities, pointing at the same time to the importance of openness towards the Arab and global securities markets to revitalize the securities sector in Iraq.

In an interview with Al-Shabaka, Al-Haimus explained the role of union of Arab Securities Authority in activating trading at Iraq Stock Exchange through an agreement with its Secretary General to work a joint project within Iraq and that the project is under discussion, and it is hoped that it will be announced before the end of 2023.

  Regarding openness to global securities markets, Al-Haimus stated that “there was no discussion on this subject, but an idea was raised a short time ago about trying to meet with Nasdaq Dubai to discuss aspects of cooperation with them.”

  Trading Problems

And on the performance of local companies at Iraq Stock Exchange,

He said: “We are not satisfied with its activity because we need our companies to be more effective, and we were able to solve many of these problems, and currently there are about 9 companies that have suspended.”

  Share Price

  Al-Haimus added: We have ideas, if agreed upon, regarding the issue of adjusting the low share price, and through these ideas we will be able to achieve an increase in the share price in agreement and coordination with the Central Bank.

Regarding the issue of the custodian and whether it contributed to increasing the trading activity in the market, the chairman of the commission explained that “the custodian service is provided to investors who are not living in the country, so that the shares are kept with the custodian while collecting their quarterly profits to Investors, and at the same time, move their shares by buying and selling.

  The Custodian Bank

The custodian bank is a service currently contributed by 4 Iraqi private banks, and they are now in the process of developing and establishing the infrastructure for the requirements of this service and at the time begins to train its staff to carry out this service, and thus the service set out for investors after completing these steps by banks. Which their percentage of completion diverse from each other; In which one of them has a 95 percent completion rate.

  Subscription Opportunities

Regarding the citizen's search for subscription opportunities instead of trading, due to the share low price, as he seeks to achieve greater profits in light of the low share price; Al-Haimus explained that: Achieving profits depends on the size of the investment and the investor’s plan and whether he wants to be a Dealer or a real investor who waits to collect profits through the company’s work,” stressing that “there are companies made 100 percent profits and others were remunerative, and this is healthy and gives confidence to the Iraqi securities markets.

Multiple Sectors

  And what happened to the proposal of offering 25 percent of the shares of the governmental companies for trading, Al-Haimus said: This serves the trading in securities and surely the multiple sectors in the market and the addition of new companies creates activity, and that the government directs towards Revitalizing the private sector is one of its tools that we hope to achieve is privatization, and after the budget is approved, this wheel begins to turn.”

  Foreign Investment

And regarding the volume of investment for non-Iraqis in the Iraqi market for securities, which overcome its Iraqi counterpart, Al-Haimus stated that “there are 10 Investment portfolioFor foreign investors, and they in turn invest in the money of others of their nationalities, so it enters to the portfolio For example, 100 million or 50 million dollars, and foreign investment buy according to their readings of the market, and since the percentage of Foreign investment is greater, so they are the drivers of the market, through financial intermediaries who trade in market in accordance with their requests.

  Attracting Investors

On attracting local investors, Al-Haimus said, “The Commission as an a Regulatory entity and concerned with the promotion of investment in the Iraqi market for securities, it will have Activities to promote trading during the current month, in stocks and bonds, in addition to the investor day which will be held in the month of October to promote also on trading in the market with Ambitions that privatization would have been achieved at that time.

The Arabic Cooperation

Al-Haimus pointed out, “A set of ideas are under development, to be Intensive activities of the Commission to attract local and outside investors, pointing out the agreements conducted with Jordan and Egypt, and we are members of the Iraqi-Saudi Coordinating Committee And through that, we are trying to open horizons of cooperation with the capital markets of those countries and how to activate multiple participations to attract investors.

  Dinars And Shares

And whether the value of the dinar is related to the current share price, Al-Haimus:  replied “It certainly has a relationship. If you were holding shares in the dinar currency today, it happened A decrease in the exchange rate, then this means a loss for you and vice versa,” explaining that “the instability of price Exchange has a great impact on the securities markets and is one of the factors that repel investors Foreigners and locals who prefer dealing in dollars.

And the reason that drives the investors, in spite of the existence of these repellents to invest, to continuing by trading, Al-Haimus replied that “there are investors who make more profits than the margin of loss this is first. and secondly, some of them manage investment portfolios as well as the experienced ones in trading and diversify of their investments, whether in cash or as projects or trade which are considered as one of the precautionary measures.”