Iraqis bullish on stocks

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BAGHDAD -- The miniature Liberty Bell clanged. Elbows flew. Sweat poured down foreheads. Sales tickets were passed and, with a flick of the wrist, 10,000 shares of the Middle East Bank had more than doubled in value.

The frantic pace yesterday of those first 10 minutes of trading typified the enthusiasm behind the Iraq Stock Exchange, an institution seen as a critical step in building a new Iraqi economy.

In five sessions, trading volume has nearly quadrupled, and the value of some stocks has surged more than 600 percent. Traders say the gains reflect the pent-up frustration of 15 months of closure.

"How can I not be excited by this?" asked Taha Ahmed Abdul-Salam, the exchange's chief executive officer, as he eyed the activity on the trading floor.

The ISX is housed temporarily in a converted restaurant. Looters had gutted the old exchange, so traders now jostle for position in a long room overlooking an old dining room. Where bartenders once chatted with patrons sidling up for drinks, a bank of secretaries logs orders.

With space limited, investors are not allowed in the exchange, let alone on the "floor." Instead, from a makeshift courtyard, they can look in through the same windows that once offered diners a garden view. Joining them are a posse of men armed with assault rifles who provide security.

Such scenes are standard in the tumultuous Iraqi capital, and the presence of security does little to dampen enthusiasm at the exchange.

The unofficial figures of the day's trade tell the story: More than $10 million in stocks changed hands, reflecting the movement of about 1.43 billion shares, though only 27 companies are listed on the exchange.

"Iraqis have always been business-savvy," said Mr. Abdul-Salam, the former research head at the old exchange. "But that we have this much activity with so few companies listed shows just how much pent-up frustration there was among investors under the previous regime."

For Iraqis, these days have been a long time coming. The ISX replaces the defunct Baghdad Stock Exchange, which was riddled with corruption. Saddam Hussein's extended family often muscled in by simply issuing new shares for companies they found attractive.