(MENAFN- Khaleej Times)

The Rabee Securities Iraq Stock Exchange Index (RSISX Index) recorded limited growth of 0.6 per cent in October compared to neighboring markets, reflecting a measured investor sentiment ahead of Iraq's parliamentary elections scheduled for November 11, 2025. Key contributors to the RSISX Index's performance included National Bank of Iraq, Baghdad Soft Drinks, Asiacell, and Al-Mansour Hotel.

During the month, two non-RSISX Index companies announced dividend distributions - Cihan Bank for Islamic & Finance with a dividend yield of 2.3 per cent, and Asia Al Iraq Islamic Bank with a yield of 2.0 per cent. The total trading volume of the Iraq Stock Exchange (ISX) increased by 87 per cent compared to September, reaching $40.2 million, supported by cross transactions. Excluding cross-transactions, trading volume still grew by 28 per cent month-on-month to $19.1 million. The banking sector maintained the highest share of trading activity at 61.6 per cent, followed by the industry sector (28.5 per cent), telecom (4.8 per cent), hotels and tourism (2.0 per cent), agriculture (1.8 per cent), and services (1.4 per cent). Meanwhile, trading in the over-the-counter (OTC) market decreased by 15 per cent in October to $177,700.

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A total of 27 companies saw their share prices increase during the month, with 12 recording gains of 5 per cent or more and 8 advancing by over 10 per cent. Modern Construction Materials achieved the strongest performance, rising by 61.4 per cent, followed by Electronic Industries with a 23.9 per cent increase.

Tugba Tan Karakaya, Equity Analyst at Rabee Securities, commented:” Although the RSISX Index recorded a slight growth in October ahead of Iraq's parliamentary elections, the notable rise in trading volume during the month indicates ongoing improvement in market activity. The increase in both total and non-cross trading volumes suggests stronger participation from local investors, particularly in the banking and industrial sectors. In addition, positive developments such as dividend distributions and progress in the Tabadul linkage project contributed to market momentum.”

Among key developments in October, the Iraqi Securities Commission (ISC) approved membership requirements for Iraqi brokerage firms to trade on the Tabadul platform of the Abu Dhabi Securities Exchange (ADX) and for foreign brokerage firms to trade on the Iraq Stock Exchange (ISX), marking significant progress in the strategic linkage between the two markets. The International Labour Organization (ILO) also launched a €40 million Credit Guarantee Fund managed by the Iraqi Company for Bank Guarantees (ICBG) to empower small and medium enterprises (SMEs) by enabling up to €100 million in loans by 2031.

According to the World Bank's MENAAP Economic Update released on October 7, Iraq's real GDP is projected to grow by 6.7 per cent in 2026 - the highest among Arab countries - driven by recovery in the energy sector, rising oil exports, and government efforts to strengthen infrastructure and diversify income sources.

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