By Ahmed Tabaqchali (pictured), CIO of Asia Frontier Capital (AFC) Iraq Fund.
Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.
The market in January was a tale of two halves. The first half started with a whimper with turnover declining 40% from December’s levels and prices drifting lower taking the market, as measured by the RSISUS Index, to a decline of over -4% by around mid-month.
The second half was almost the opposite with prices recovering steadily and turnover doubling from the that of the first half. The market ended the month +4.8%.
However, the average daily turnover for the full month was anaemic at 90% of the average of that of the last 12 months, itself a low figure to start with.
Which argues that the recovery is in the early tentative stages, but supports the case that the correction that began in March of last year has run its course by October, and that the market could play catch up as discussed in the outlook for 2018.
Mr Tabaqchali (@AMTabaqchali) is the CIO of the AFC Iraq Fund, and is an experienced capital markets professional with over 25 years’ experience in US and MENA markets. He is a non-resident Fellow at the Institute of Regional and International Studies (IRIS) at the American University of Iraq-Sulaimani (AUIS). He is a board member of the Credit Bank of Iraq.
His comments, opinions and analyses are personal views and are intended to be for informational purposes and general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any fund or security or to adopt any investment strategy. It does not constitute legal or tax or investment advice. The information provided in this material is compiled from sources that are believed to be reliable, but no guarantee is made of its correctness, is rendered as at publication date and may change without notice and it is not intended as a complete analysis of every material fact regarding Iraq, the region, market or investment.