Page 11 - ISX Year Book 2023 EN

Iraq Stock Exchange’s Annual Report 2023

ISX60 Market Index

The Iraq Stock Exchange launched the ISX60 traded stock price index in 2015, and took Feb.
9 as a starting date. It is an indicator specific to X-stream, where the electronic system
calculates the ISX60 market index in each session for a sample of 60 listed joint-stock
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companies compared to their prices for the base session that took place on Mar. 18 , 2014. The
X-stream then begins comparing the prices for any certain session as opposed to the previous
one. The index is considered a standard value to indicate the directional movement of the
Exchange.
The index sample was selected according to the following principles:

• Choosing companies that achieve the highest turnover of shares in trading and that are
not subject to suspension.
• No newly listed companies have been registered in the index. Any of these companies
will be included in the index when its circulation stabilizes and an appropriate turnover
rate is achieved.
• Adopting a value that is attributed to 1000 points instead of the percentage indicator to
calculate the most accurate price changes .
• Recalculating the value of the index for the year 2014 to facilitate the comparison
process for the following year.
• Adopting a standard number that relies on weights according to the following
equations:

Index = (company weight for a sample of 60 companies * closing price at the comparison
session / company weight for a sample of 60 companies * closing price at the base session)
*1000

Where company weight: the sum of listed shares of a company that is included in the chosen
sample (capital) divided by the whole sum of ISX-listed shares of the chosen sample of 60
companies

In order to measure the change in the value of the index between one session and another, we
use:

Relative change (%) = [(index’s current closing price – index’s previous closing price) / index’s
previous closing price] * 100

Or: = (index’s current closing price / index’s previous closing price) – 1 * 100

Relative change (points) = index’s current closing price - index’s previous closing price

A market index is a directional indicator to follow the direction of price movement. It is
represented by the size of the selected sample that is reviewed annually or periodically to
determine the accuracy of this representation, and the impact of standard and non-standard
factors on it.

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