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Rabee Securities Market indices record divergent performance in January 2026
Market sentiment remained cautious amid ongoing political uncertainty, particularly discussions related to government formation and leadership, which affected index performance and trading activity
- PUBLISHED: Sat 7 Feb 2026, 12:20 AM
The Rabee Securities Iraq Stock Exchange Index (RSISX Index) declined by 0.9% in January, primarily reflecting decreases in the share prices of Bank of Baghdad, Iraqi Islamic Bank, National Bank of Iraq, and Al-Mansour Bank. These declines also weighed on the RS Iraq Banking Index (RSIBX), which fell by 4.5% during the month.
Market sentiment remained cautious amid ongoing political uncertainty, particularly discussions related to government formation and leadership, which affected both index performance and trading activity. Regional developments, including anti-government demonstrations in Iran that intensified in January, further contributed to the subdued market environment.
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By contrast, the RS Iraq Halal Companies Index (RSIHX) recorded an increase of 5.1% during the month, supported by higher share prices of Asiacell and Baghdad Soft Drinks, the two largest constituents of the index, highlighting differentiated performance across market segments.
Tugba Tan Karakaya, Equity Analyst at Rabee Securities, said: “The January performance reflects a period of heightened caution in the market, driven by political uncertainty and reduced liquidity. Despite this environment, the positive performance of the Halal index indicates continued investor selectivity and the relative strength of specific companies within the market”.
Total trading volume on the Iraq Stock Exchange (ISX) declined by 80% in January 2026 compared to December 2025, reaching USD 12.1 million. Excluding cross transactions, trading volume decreased by 43% month-on-month to USD 9.4 million, reflecting lower participation levels during the period.
Tugba added: “While periods of political transition are often accompanied by lower trading activity, ongoing efforts to strengthen market regulation and infrastructure remain critical to supporting stability and encouraging broader investor participation over time”.
The banking sector accounted for the largest share of trading volume during the month at 58.5%, followed by hotels and tourism (13.3%), industry (11.4%), telecommunications (11.1%), services (3.4%), and agriculture (2.1%). Separately, trading volume in the over-the-counter (OTC) market increased by 57% compared to December 2025, reaching USD 392.4 thousand.
Equity price performance was mixed. Share prices of 27 listed companies increased during January, with 15 companies recording gains of 5.0% or more, and 11 companies rising by more than 10.0%. Al-Hamraa for Insurance recorded the strongest performance, with its share price increasing by 228.9%, followed by Modern Construction Materials, which rose by 79.3%.
January also saw notable institutional developments. The Iraqi Securities Commission launched its 2026–2028 strategy aimed at enhancing capital market efficiency and investment stability, while advancing toward full membership in the International Organisation of Securities Commissions (IOSCO) through alignment with international regulatory standards. In parallel, Iraq recorded the world’s second-highest annual improvement in governance in 2024, with its Worldwide Governance Indicators (WGI) score increasing from 29.5 in 2023 to 32.5 in 2024, according to the Ministry of Finance citing WGI data referenced by Fitch Ratings and Standard & Poor’s.
