Baghdad: While the rest of the world is facing a financial meltdown, the Iraq Stock Exchange is booming.

The ISX index soared nearly 40 per cent during September, boosted by increasing confidence in security gains. But the stock market's chief isn't gloating. He's worried Iraq's greatest asset oil could prove to be its Achilles' heel.

"I believe we're still far from what's happening in the world in the financial markets. But in the end you must know we are part of this world. I believe somehow we will have some problems," chief executive officer Taha Abdul-Salam said today during an interview in his office above the busy trading floor.

Iraq is in a unique position since its post-war economy is in the rebuilding process and still largely dependent on US funds instead of international investment. That's reflected in the stock market, which only has 95 Iraqi companies listed and a daily volume of USD 1 million to USD 2 million.

"I don't think that the current financial crisis will hurt our economy and especially this market because we are not connected to any of the global markets and we have very few foreign investors," said Omar Mouwaffak, a 73-year-old trader. "It is still a small, local market."

Mouwaffak was one of dozens of investors and brokers crowding the floor today as daily market activity was updated with colored markers and erasers on white bulletin boards in lieu of computers.

Source : PTI