Energy Companies no Proxy for ISX

The latest article from our Expert Blogger Mark DeWeaver gives a concise overview of the fall and rise of the Iraqi Stock Market (ISX) over the past 15 months, and of some of the factors driving (and not driving) it.

For the average non-Iraqi retail investor, however, it is difficult to participate in this market, and for reasons discussed in the article that may remain the case for some time.

Exposure to companies whose fortunes depend on business in Iraq is the nearest most individuals can get to exposure to the ISX, but the two approaches should not be confused. The Iraq-focussed companies that are traded on the international stock exchanges are predominantly in the energy sector, and their share prices will be driven more by oil price forecasts and the expected quality of their real estate than by Iraqi business in general.

Oil companies are not a proxy for the Iraqi stock market.

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