Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 1st June 2017).
The RSISX index ended the week at IQD841 (-3.1%) / $870 (-2.7%) (weekly change) (-12.3% and -8.1% YTD change, respectively). The number of week traded shares was 3.9bn and the weekly trading volume was IQD2.7bn ($2.1mn).
ISX Company Announcements
- The Central Bank of Iraq (CBI) disclosed that a law to protect banks’ deposits shall be issued soon. Governor Ali al-Alaq pointed that this law will support the Iraqi banks and their clients, as well as creating a state of trust between the citizen and the banks.
- According to the CBI announcement on June 1, 2017 for working benefit and applying item 2 of CBI law and Item 56 of banks laws and to follow CBI instructions to build a strong, safe, transparent and developed banking system the following items were decided: 1) Guarantee credit ceiling is set that it should not exceed 200% of the capital and reserves and monetary credit ceiling should not exceed 600% of the capital and reserves which is a total of 800% of capital and reserves. 2) Provision of 7% of the guarantee letters after deducting the margin accounts of 15%, according to the instructions of issuing guarantee letters, are deposited in the CBI in a specific account for this purpose to face any deficit in covering the claimed guarantee letters that are not paid. It has to be included within the cash balances when calculating the bank’s liquidity. The amount is paid when the legal procedures are completed or when the banks can’t pay the amount using its own balance. 3) The CBI confirmed its announcement on Sept. 14, 2014 which included not accepting cheques or promissory notes as collateral for the credit and demanding the borrower to offer tangible collateral that matches the amount of credit. 4) The compliance manager and auditors must confirm the guarantee letters and the collateral received for that matter and include these observations in their disclosed reports.
- The CBI has decided to open two branches in Erbil and Suleymani respectively from next month after a year-long talk with the Kurdish government. (Rudaw)
- Mosul Bank for Development and Investment (BMFI) will hold AGM* on Jun. 6, 2017 to discuss and approve 2015 annual financial results and discuss relocating company HQ from Erbil to Baghdad. ISX suspended trading of BMFI starting on Jun. 1, 2017.
- Trans Iraq Bank for Investment (BTRI) resumed trading on May 30, 2017 after discussing and approving 2016 annual financial result and deciding to distribute 3.4% cash dividend (IQD0.034 dividend per share, 4.9% dividend yield).
- Electronic Industries (IELI) resumed trading on May 30, 2017 after fulfilling ISC disclosure requirements, publishing 2014 and 2015 annual financial results and paying the annual listing fees.
- Al-Bilad Islamic Bank for Investment and Finance (BLAD), which has IQD250bn paid-in capital, has completed depositing its shares in the IDC and started trading in the regular market on May 28, 2017.