Baghdad, Iraq: The Rabee Securities Iraq Stock Exchange Index (RSISX Index) rose by 1.3% in July, outperforming regional peers including Saudi Arabia (-2.2%), Bahrain (+0.6%), and Kuwait (+1.2%). Key drivers of growth included Al-Mansour Bank, National Bank of Iraq, Commercial Islamic Bank of Iraq, and Asiacell.
The RSISX Total Return Index (RSISXTR) recorded a 2.4% gain in July, supported by dividend activity led by Baghdad Soft Drinks (IQD 0.36 per share, 7.5% yield). Other dividend contributors during the month included Dar Al-Salam for Insurance (7.7%), Al Janoob Islamic Bank (3.1%), and Mamoura Real Estate Investment (0.9%).
Tugba Tan Karakaya, Equity Analyst at Rabee Securities, commented:
“Market momentum remained resilient in July, driven by solid banking and telecom sector performance. Dividend yields continue to reflect healthy corporate fundamentals, while macroeconomic reforms and infrastructure commitments are enhancing long-term investor sentiment.“
Trading volume on the Iraq Stock Exchange (ISX) surged 45% month-on-month, reaching USD 25.3 million. The banking sector led activity with a 66.6% share, followed by industry (14.9%), telecom (11.1%), agriculture (3.1%), services (2.9%), and hotels & tourism (1.3%). Meanwhile, OTC market trading fell 86% to USD 37.4K.
A total of 27 companies recorded price increases in July, with 13 rising more than 5% and 10 exceeding 10%. Notable performers included Kurdistan International Islamic Bank (+52.2%) and Al-Ataa Islamic Bank (+50.0%).
July also brought several key macroeconomic developments. The IMF completed its 2025 Article IV consultation, forecasting 3.1% GDP growth and 2.9% inflation, while urging fiscal reform and diversification. Iraq ranked third in the Arab world for bank card issuance, reflecting rapid digital payment growth. Additionally, the World Bank approved a $930 million rail modernization project, and Iraq formally adopted the TIR transit system, positioning itself as a regional trade hub.
