Silk Road Management Launches Two Debut Iraqi Equity Indices

Silk Road Iraq Oil Index surged impressive 24% in January 2012.


ULAANBAATAR. Silk Road Management is pleased to announce that it launched Silk Road Iraq Index (SILKIQ) and Silk Road Iraq Oil Index (SILKIO), two debut equity indices that include largest Iraq-focused companies, listed on the Iraq Stock Exchange (ISX) as well as international bourses in London, Toronto and Oslo. The Silk Road Iraq Index currently covers 26 companies with total market capitalization of US$12.8 billion (January 1, 2012). The Silk Road Iraq Oil index contains seven internationally listed oil & gas companies with assets and operations in Iraq with total market capitalization of US$9.6 billion (January 1, 2012). In the first month of this year alone, the Silk Road Oil Index surged +24% while SILKIQ grew +14%. Alisher Ali, Managing Partner, Silk Road Management stated, “Resource-rich Iraq and Mongolia are by far two most attractive frontier markets now and for years to come. In 2011, Iraq had the world’s best performing equity market (up +35%), while Mongolia was the world’s fastest growing economy (17% GDP growth). We estimate that Mongolia and Iraq will be the world’s two fastest growing economies in 2011-2015, with GDP growth of 18% and 13% per annum respectively. Both countries have one of the lowest ratios of equity market capitalization to GDP globally which, along with massive economic growth, would translate in world beating performance of their respective equities markets in coming years.

Therefore, following success of our Silk Road Mongolia index, we are excited about the launch of two new Iraqi equity indices”. 19 Iraqi banks and companies locally listed on ISX are included in the Silk Road Iraq index. However, they collectively represent only 25% of the index’s total market capitalization while seven internationally listed oil & gas companies currently dominate the index. The full lists of members for both indices are provided on pp 2-3. “It is hard to believe but the entire universe of 87 companies listed on the Iraq Stock Exchange has only less than US$5bn in total market capitalization in the $100bn Iraqi economy.

We expect the Iraqi local equity market to boast at least US$50bn in market capitalization by 2015 on the back of privatization, IPOs and revaluation of asset values”, said Alisher Ali.

To read the full four-page press release with charts and tables, please click here. Further Information:
Sherzod Rakhimov
Tel: +976 7013 0078
Email: sherzod.rakhimov@silkroadm.com
www.silkroadm.com

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