Iraq Stock Market Report

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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 31st Mar 2016).

Please click here to download a table of listed companies and their associated ticker codes.

The RSISX index ended the week at IQD839 (-3.5%) / $844 (-4.3%) (weekly change) (-23.1% and -26.3% YTD change, respectively). The number of week traded shares was 8.7 bn and the weekly trading volume was IQD5.6bn ($4.3mn).

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ISX Company Announcements

  • An Iraqi appeals court has upheld a ruling that obliged the local unit of Kuwait’s Zain, Al Khatem (TZNI), to pay a $187mn tax bill related to the acquisition of a rival operator from Egypt’s Orascom Telecom in 2007. Iraq’s tax authority has claimed from Zain Iraq (TZNI) capital gains tax worth $187mn from its $1.2bn purchase of Iraqna. A bank account freeze on an amount equivalent to the tax bill was imposed. According to ISX announcement on Mar. 31, 2016 (dated back on March 30), the court of appeal has issued a decision about the case to uphold the decision of the primary court that had ruled not to accept Zain Iraq’s claim. It was mentioned in the ISX announcement that TZNI has a right to appeal the decision at the cassation court within 30 days, and the company will offer an appeal in the coming days. (ISX, Reuters)
  • Baghdad Soft Drinks (IBSD) published a feasibility plan concerning the merger with Ynabee Al Zawraa Company, that has the license for the production and distribution of Aquafina, according to the Company’s Law, Number 21 (articles 148, 149, 150, 151, 152). According to the feasibility plan, production line for Aquafina brand is planned to start operating in July 2016. The production capacity is expected to be 54,000 bottle/hour for 500ml and 330ml bottles, corresponding to 333,590,400 bottle/year (70% of the production will be for 500ml bottles and the 30% of the production will be for 330ml bottles). The life of the production line was estimated at 10 years. Initial investment was calculated at $39.37mn, NPV at $46.3mn, while the payback period was calculated at 4.8 years and the IRR at 13.49%. (Please go to page 18 of the feasibility plan for the details of the investment)
  • Trans Iraq Bank for Investment (BTRI) resumed trading on Mar. 31, 2016 after discussing and approving 2015 annual financial results and to distribute 3.03% cash dividends (IQD0.03 price per share).
  • New shares of Dijla & Furat Bank for Development (BDFD) from the capital increase to IQD112bn through 5.7% bonus issue resumed trading on Mar. 31. 2016.
  • ISX announced its request for the listed companies and brokerage firms to elect their representatives for the ISX Board of Governors for 2016. ISX will hold its AGM on May. 28, 2016.

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