Claims to raise the share price to activate the stock market
17/12/2017 12:00 AM
Baghdad / Mustafa Al Hashemi
After the announcement of victory over the "preacher" terrorist, the next stage requires directing efforts to promote the economic sector and direct and indirect investments, as well as expanding confidence and increase the volume of trading in the Iraqi market for securities, whether domestic investors or foreigners.
The low share price and the modest profits distributed by companies to shareholders is one of the main reasons for the increase in the volume of trading at the local level, while the number of foreign investors (remote) in the rise of stable and slow requires - as observers - to reconsider the prices of shares offered for trading, Article (13) of the Securities Regulations No. 74 of 2004 stipulates that "the price of sale and purchase orders shall be raised or reduced by (50) fils or multiples."
In this regard, economic researcher Lubna al-Shammari said, "There are companies trading in the stock market rates are still so far less than one dinar, while there are companies whose prices are four dinars," explaining that
"this price is very modest, especially when the distribution of profits where Some new traders are placing high hopes on profits, but they are balking at the amount of trading because of the low stock price and market value."
Al-Shammari called in an interview with Sabah to the need to review the rates of stock prices, which would increase the number of traders to strengthen the work of the stock market to reach the level of ambition, stressing that the increase in the share price will contribute to the final result attracting the largest number of investors, whether local or Foreigners".
"The supply of shares is much greater than what is required," said Mahmoud Munther, a consultant at the stock exchange.
He said that the increase in bank capital to 250 billion dinars reflected the negative impact on stock prices.
"The subscription is now the best investment because it is the content of profit and low risk."
Despite the campaign launched by the Iraqi market for securities about five years ago to identify the shares and companies traded and call to trade in the sale and purchase, most citizens still have difficulty in understanding the mechanism followed in the stock market, in addition to the role of financial intermediaries in explaining to them and guide them and advised them to do the sale or purchase.
The reason for the fall in the popularity of the stock market is that the purchase of fixed assets is much better than investing in the sale and purchase of shares in the stock exchange, as a result of the weakness of the culture of trading securities and shares of companies in the stock market.