Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 2nd June 2016).
The RSISX index ended the week at IQ714 (+3.0%) / $713 (+3.0%) (weekly change) (-34.5% and -37.8% YTD change, respectively). The number of week traded shares was 27.1 bn and the weekly trading volume was IQD8.5bn ($6.5mn).
ISX Company Announcements
- Asiacell (TASC) disclosed that, on May 15 2016, the CMC affirmed its decision (#1095), which was taken on February 4, 2016, to freeze the liquid and fixed assets of TASC due to the unpaid amount of (IQD197.8bn) as regulatory fees. The unpaid amount of regulatory fees declared by the CMC represents the difference between 15% and 18% of gross revenue of TASC. The CMC claims that the regulatory fees should be 18% of the gross revenues of TASC, while TASC argues that it has to be 15% based on its shareholders’ structure. On October 27, 2015, TASC had received a final court decision that says the CMC has no legal right to claim the additional regulatory fees. Therefore, if CMC applies its decision for the freezing of the assets of TASC, the company plans to issue a lawsuit against the CMC for lifting the freeze on the liquid and fixed assets of TASC and keep calculating regulatory fees based on 15%. Please note, ISC approved this disclosure on May 25, 2016.
- Baghdad Soft Drinks (IBSD) will hold its AGM* on Jun. 16, 2016 to discuss and approve 2015 annual financial results, distributing cash dividends, merging with Ynabee’ Al Zawraa Company and capital increase depending on the approval of the merger. The proposed new capital is the total paid-in capital of IBSD and Ynabee’ Al Zawraa Company.
- New shares of Modern Animal and Agricultural Products (AMAP) will resume trading on Jun. 5, 2016 from the capital increase to IQD4.1bn through 5% bonus issue.
- National Bank of Iraq (BNOI) will resume trading on Jun. 5, 2016 after discussing and approving 2015 annual financial results
- According to ISC decisions taken on May 19, 2016 referenced to ISX Board of Governor’s letter on Jan. 18, 2016, following developments happened: 1) North Soft Drinks (INSD) and Baghdad Motor Car Servicing (SBMC) have been delisted on Jun. 1, 2016 for not paying the annual listing fees. 2) The following companies which are in hot zones; Mosul Dam Tourist Village (HTVM), Ashour Hotel (HASH), National Household Furniture Industry (IHFI) and Modern Construction Materials Industry (IMCM) have started trading in non-regular market on Jun. 1, 2016, which were trading in regular market, due to not paying the annual listing fees. 3) The Light Industries (ITLI) was suspended from trading pn Jun. 1, 2016, because they did not pay the annual listing fees.
- A cross transaction occurred on 20.0bn shares of United Bank (BUND) on May 31, 2016. This represents 6.7% of BUND capital.
- According to the court decision, the listed shares of Iraqi Middle East Investment Bank (BIME) that are owned by North Bank (BNOR) were auctioned off for sale on May 30, 2016. Furthermore, ISX announced on May 30, 2016 that Asiacell’s (TASC) shares owned by BNOR will be blocked by court order until the court verdict is finalized for this case.
- Mamoura Realestate Investment (SMRI) resumed trading on May 29, 2016 after discussing and approving 2015 annual financial results.