Iraq Business News is delighted to bring you the latest Iraq Market Tracker report from Dunia Frontier Consultants. The market tracker highlights the activities and market performance of a basket of publicly traded firms who derive a significant percentage of their revenues from operations in Iraq, but are traded on foreign exchanges: a proxy Iraq play as much as practicable. It also identifies and analyzes the primary political and security events that occur in country that have market-moving implications.
ID1,281(-0.4%) / $1,397, (-0.9%) (weekly change). The number of week traded shares was 7.1 bn and the weekly trading volume was ID11.3bn ($9.5mn).
ISX Company Announcements
A cross transaction occurred on 600mn National Bank of Iraq (BNOI) shares on Apr 17.
Iraqi Middle East Investment Bank (BIME) will hold the GA on April 30, 2012 to discuss capital increase from ID100bn to ID150bn through 25% bonus and 25% right issues. ISX will suspend trading of BIME starting April 23, 2012.
Iraqi for Seed Production (AISP) will hold the GA on May 7, 2012 to discuss capital increase through bonus issue and cash dividend ratio. ISX will suspend trading of AISP starting April 30, 2012.
Iraq Business News is delighted to bring you the latest Iraq Market Tracker report from Dunia Frontier Consultants. The market tracker highlights the activities and market performance of a basket of publicly traded firms who derive a significant percentage of their revenues from operations in Iraq, but are traded on foreign exchanges: a proxy Iraq play as much as practicable. It also identifies and analyzes the primary political and security events that occur in country that have market-moving implications.
ID1,287 / $1,412, -2.1% (weekly change). The number of week traded shares was 4.4 bn and the weekly trading volume was ID8.5bn ($7.2mn).
ISX Company Announcements
Baghdad Hotel (HBAG) resumed trading on April 12, 2012 after increasing its capital from ID1.922bn to ID3.844bn through 100% rights issue.
Ishtar Hotel (HISH) will resume trading on April 15, 2012 with no change in its capital. HISH was not trading since March 15, 2012 due to GA which was held to discuss 2010 financial statements.
United Bank (BUND) will hold AGM on April 15 to discuss 2011 financial report, cash dividend ratio and capital increase from ID200bn to ID250bn, through 20% bonus and 5% rights issues. ISX suspended trading of BUND starting on April 8.
ISX suspended the trading of Iraqi Date Processing & Marketing (IIDP) on Apr. 8 due to not submitting their annual financial report ended Aug. 31, 2011.
Iraq Business News is delighted to bring you the latest Iraq Market Tracker report from Dunia Frontier Consultants. The market tracker highlights the activities and market performance of a basket of publicly traded firms who derive a significant percentage of their revenues from operations in Iraq, but are traded on foreign exchanges: a proxy Iraq play as much as practicable. It also identifies and analyzes the primary political and security events that occur in country that have market-moving implications.
ID1,314 / $1,442, -1.7% (weekly change). The number of weekly traded shares was 24.6 bn and the weekly trading volume was ID49.6bn ($41.9mn).
ISX Company Announcements
Two cross transactions occurred on 6.5bn United Bank (BUND) shares on April 5.
A cross transaction occurred on 12.5bn United Bank (BUND) shares on April 4.
United Bank (BUND) will hold AGM on April 15 to discuss 2011 financial report, cash dividend ratio and capital increase from ID200bn to ID250bn, through 20% bonus and 5% rights issues. ISX will suspend trading of BUND on Apr 8.
The Light Industries (ITLI) resumed trading on Apr 2, after the submission of its 2010 annual and 2011 quarterly financial results to ISC.
Mansour Bank (BMNS) will start distributing 7.12% cash dividend on Apr 8.
2011 was a good year for HSBC’s 70%-owned subsidiary Dar Es Salam Bank (BDSI). Full-year operating and pre-tax profit rose 921% and 877%, respectively, with almost all of this gain occurring in the second half. Year-end deposits and lending were up 70% and 81% over December, 2010.
Operating profit came in at IQD 9.4 bn, just shy of the IQD 9.7 bn level reached in 2009 though still well below the 2008 all-time high of IQD 16.6 bn. (See Chart.) 2010’s operating profit decline resulted from a 32% drop in operating revenue. 2010 operating expenses were down only 9%.
The erratic character of BDSI’s recent track record might make you wonder whether last year’s earnings growth is sustainable. A return to the 2008 level of IQD 16.6 bn this year would be a still impressive 76% jump. But will that be followed by another drop in 2013?
Deposit growth tells a more encouraging story. At IQD 662 bn, deposits are at an all-time high. This is particularly impressive in comparison with many of the other listed Iraqi banks. Last year deposits at North Bank (BNOR) and Bank of Baghdad (BBOB)—Iraq’s first and second largest private-sector banks by total assets—fell 11%, and 13%, respectively. At Iraqi Middle East Bank (BIME), Kurdistan International Bank (BKUI), and United Bank (BUND) deposits grew by only 9%, 7%, and 4%, respectively.
A significant share of BDSI’s IQD 274 bn increase in deposits may actually have come at the expense of its rivals. This amount is roughly comparable to the combined IQD 183 bn decline in deposits at BNOR and BBOB, for example.
BDSI’s deposits are also likely to have grown as a result of last year’s strong foreign direct investment (FDI) and trade flows. With HSBC as a majority shareholder, BDSI is an obvious choice for foreign companies looking for a local bank they can trust.
In fact, international business seems likely to be the primary source of BDSI’s earnings growth for the foreseeable future. Fortunately for the bank, FDI and trade are set to grow strongly for years to come as Iraq ramps up oil production to its full potential. Perhaps BDSI has at last entered a period of consistently high earnings growth.
