Investors 'Association: Investors' reluctance to buy shares due to non-distribution of profits

President of the Investors Association in the Iraqi Stock Exchange, Dr. Alaa Al-Mousawi
 
10/18/2020

Economy News - Baghdad

The Association of Investors in the Iraqi Stock Exchange confirmed that the reasons for the reluctance of investors to buy shares of companies are due to the non-distribution of profits as a result of the losses they are exposed to annually.

The head of the Investors' Association in the Iraqi Stock Exchange, Dr. Alaa Al-Mousawi, said in his speech to "Al-Eqtisad News", that "the most important reasons for the weakness of the stock exchange in Iraq are the size of investors from buying shares of joint-stock companies listed on the Iraq Stock Exchange."

He added that  most of the industrial companies are companies that have stopped production and have a large deficit due to their inability to compete with foreign import and the lack of government support. As for the producing companies, most of them do not make profits and do not distribute profits to shareholders with the exception of a few distinguished companies that distribute profits to shareholders, such as Baghdad Products Company. Invasive, and the sewing company.

He explained that most of the private banks suffer from the deteriorating economic situation and their inability to recover the loans they provide to customers, and therefore profits are not distributed to shareholders, and some banks suffer from a lack of liquidity.

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