Baghdad, Iraq – The Rabee Securities Iraq Stock Exchange Index (RSISX Index) recorded a 5.0% increase in April, outperforming several regional markets, including Saudi Arabia (TASI) (-0.7%), Abu Dhabi (ADX) (+2.0%), Qatar (QSE) (+2.5%), Kuwait (BKP) (+3.5%), Bahrain (BHBX) (+4.4%), and Dubai (DFM) (+4.6%). The positive market performance was supported by easing political uncertainty following key developments in Iraq’s government formation process, alongside continued investor focus on fundamentally strong companies.

The upward movement in the RSISX Index was primarily driven by gains in Al-Mansour Bank, Asiacell, and National Bank of Iraq, while weaker performance in Baghdad Soft Drinks partially moderated broader index growth. Improved political sentiment following the election of President Nizar Mohammed Saeed Amidi and the nomination of Ali al-Zaidi to form the new government contributed to strengthening market confidence during the month.

Al-Mansour Bank and National Bank of Iraq also made significant contributions to the 3.7% increase in the RS Iraq Banking Index (RSIBX) in April, reinforcing the banking sector’s role as a key driver of market activity. Meanwhile, the RS Iraq Halal Companies Index (RSIHX) rose by 7.5%, supported primarily by the strong share price performance of Asiacell, with Iraqi Islamic Bank providing additional support.

The RSISX Total Return Index (RSISXTR) increased by 6.6% during the month, reflecting both market appreciation and income distribution activity, following National Bank of Iraq’s decision to distribute a cash dividend of IQD 0.25 per share, corresponding to a yield of 4.9%.

Commenting on market developments, Tugba Tan Karakaya, Equity Analyst at Rabee Securities said: “April reflected a notable improvement in investor sentiment, supported by progress in Iraq’s political transition and reduced uncertainty surrounding government formation. While regional markets continued to navigate geopolitical volatility and macroeconomic pressures, the Iraq Stock Exchange demonstrated resilience, with investor activity remaining concentrated in sectors supported by strong fundamentals and domestic demand dynamics.”

Separately, Mansour Hotel, which is not included in the indices, also announced its dividend distribution decision during April. The company will distribute a cash dividend of IQD 0.613 per share, corresponding to a yield of 1.2%.

Total trading volume on the Iraq Stock Exchange (ISX) increased by 2% in April compared to March, reaching USD 20.5 million. The banking sector accounted for the largest share of trading activity at 69.5%, followed by the industry sector at 13.0%, telecom at 10.1%, services at 4.9%, agriculture at 1.5%, and hotels and tourism at 1.0%. In contrast, trading activity on the over-the-counter market declined by 55% month-on-month to USD 320.4 thousand.

Market breadth remained positive during the month, with 28 listed companies recording share price gains. Among these, 16 companies advanced by more than 5%, while 10 companies rose by over 10%. Iraqi Middle East Investment Bank recorded the strongest performance during April, increasing by 66.7%, followed by Al-Wiaam for Financial Investment with a 53.3% gain.

On the political front, Iraq’s Parliament elected Nizar Mohammed Saeed Amidi as president during April, marking a significant step forward in the country’s political process. In an official ceremony held at Baghdad Palace on April 27, President Amidi formally tasked Ali al-Zaidi, nominee of the largest parliamentary bloc, with forming the new government, representing further progress toward political stabilization and institutional continuity.

At the same time, broader macroeconomic indicators reflected a more cautious outlook. On April 17, Moody’s revised Iraq’s outlook to “negative” from “stable,” citing increased risks linked to regional tensions and their potential impact on energy flows and security conditions. In parallel, the International Monetary Fund, in its latest World Economic Outlook, projected a 6.8% contraction in Iraq’s GDP this year, reflecting regional instability, pressure on oil exports, and infrastructure-related risks. Looking ahead, however, the IMF expects growth to rebound strongly, forecasting GDP expansion of 11.3% in 2027.

Regional geopolitical risks nevertheless remain elevated. While tensions involving the United States, Israel, and Iran have eased relative to earlier periods of escalation, the broader regional environment continues to present potential risks that may influence investor sentiment and market conditions in the near term.