Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 30th Mar 2017).
The RSISX index ended the week at IQD965 (-5.4%) / $990 (-5.4%) (weekly change) (+0.5% and +4.5% YTD change, respectively). The number of week traded shares was 27.4bn and the weekly trading volume was IQD14.4bn ($11.4mn).
ISX Company Announcements
- The CBI announced that it will issue local bonds on behalf of the Ministry of Finance (MoF) with five categories which are IQD100K, IQD250K, IQD500K, IQD1mn and IQD5mn. Total issue will be IQD1.0trln in total. The two-year bonds (from Apr. 2, 2017 to Apr. 2, 2019) will be sold at an 8% annual discount rate and will come to maturity on April 2, 2019 and the payment of the bonds will be made by the MoF. The banks and citizens can apply to purchase these local bonds from the CBI directly by bringing a colored copy of the identity card. In addition, it was mentioned that the bonds could be used as collateral for loans or financial facilities or for any other transactions that require collateral. The bonds will be able to trade on the Iraq Stock Exchange (ISX), as well.
- Following CBI’s announcement No. 237/4/1/9, dated Jul. 27, 2016, regarding contracting with international auditing companies, CBI sent a letter to all licensed banks dated March 20, 2017. This new letter is related with standards for buying and selling foreign currency and includes the following two items: 1) The international auditing companies’ duty is to evaluate the financial position and the quality of the assets at the current period. In the future, this will be done by Iraqi auditing offices or by partnering with an international auditing office. 2) The training courses by the CBI in the fields of compliance, counter money laundry and risk management are provided by international and local licensed and qualified organizations.
- Al-Mansour Bank (BMNS) will hold AGM* on Apr. 6, 2017 to discuss and approve 2016 annual financial results and allocating 1% of the profit for social purposes. ISX will suspend trading of BMNS starting on Apr. 3, 2017.
- A cross transaction occurred on 24.1bn shares of Al-Rabita Al-Maliya for Money Transfer (MTRA) on Mar. 29, 2017 which represents 53.6% of MTRA capital.
- Palestine Hotel (HPAL) resumed trading on Mar. 29, 2017 after discussing and approving 2015 annual financial results, writing off IQD109.7mn doubtful loans and distributing 20% cash dividend (IQD0.20 dividend per share, 1.4% dividend yield).
- Iraqi Cartoon Manufactories (IICM) will hold AGM* on Apr. 3, 2017 to discuss and approve 2015 annual financial results. ISX suspended trading of IICM on Mar. 29, 2017.
- The ISC did not approve the ISX board of governors’ letter to delist Fallujah for Construction Materials (IFCM) from the ISX and decided the company to continue being suspended from trading for 6 months from now on.
- Economy Bank for Investment (BEFI)’s GA was postponed to Apr. 4, 2017 by the Company Registrar.
- ISX announced that World Islamic Bank for Investment and Finance (BWOR), having IQD250bn paid-in capital, has completed the listing procedures. BWOR will start trading in the non-regular market after depositing and activating 5% of the listed shares or after 21 days of deposing the company’s shares.
- ISX announced that Cihan Bank for Islamic Investment and Finance (BCIH), having IQD255bn paid-in capital, has completed the listing procedures. BCIH will start trading after depositing and activating 5% of the listed shares or after 21 days of deposing the company’s shares.