Baghdad, Iraq –  The Rabee Securities Iraq Stock Exchange Index (RSISX Index) declined by 1.4% in January, reflecting broader market adjustments amid external geopolitical factors. Despite these pressures, Iraq’s economic landscape remains stable, with ongoing reforms and corporate developments reinforcing long-term investor confidence.

The decline was primarily driven by corrections in Asiacell, National Bank of Iraq, and Baghdad Soft Drinks, while Al-Mansour Bank’s gains helped offset some of the impact. Overall, seven out of ten RSISX Index-listed companies saw a decrease in share prices. Meanwhile, Al Khatem Telecom Company’s announcement of a dividend distribution of IQD 0.14 per share, offering a 5.7% yield, signaled continued strength in key sectors.

“While the index experienced a decline, Iraq’s market fundamentals remain intact. Investor sentiment is shaped by both external factors and ongoing economic transformation, with opportunities continuing to emerge across multiple sectors,” said Tugba Tan Karakaya, Equity Analyst at Rabee Securities.

Total trading volume on the Iraq Stock Exchange (ISX) reached USD 22.8 million, marking a 46% decrease from December 2024, in line with seasonal trends and shifting investor dynamics. Excluding cross transactions, the monthly trading volume stood at USD 14.4 million, reflecting moderated but sustained market activity. The banking sector remained the dominant driver of trading, accounting for 78.1% of total volume, followed by the industry, telecom, agriculture, services, and tourism sectors. Meanwhile, the OTC market recorded $126.7K in total transactions, a 12% decline from the previous month.

Despite the overall market dip, 13 companies saw their share prices increase, with Babil Animal & Vegetable Production rising 24.0% and Elaf Islamic Bank gaining 19.6%, reflecting investor interest in select high-growth stocks.

Broader economic developments in January signaled continued momentum for Iraq’s long-term investment climate. The launch of the National Development Plan (NDP) 2024-2028, developed in collaboration with UNDP and the Ministry of Planning, underscores the country’s focus on infrastructure, public services, and sustainability. At the same time, new trade and financial agreements, including Iraq’s £12.3 billion partnership with Britain, along with enhanced regulatory cooperation with Abu Dhabi and Egypt’s financial authorities, are expected to bolster market efficiency and transparency.