Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 30th January 2020).
The RSISX index ended the week at IQD628 (+0.5%) / $668 (+0.8%) (weekly change) (-4.7% and -4.7% YTD change, respectively). The number of week traded shares was 5.8 bn and the weekly trading volume was IQD4.8 bn ($3.9 mn).
ISX Company Announcements
- The Central Bank of Iraq (CBI) has approved the sale of Burgan Bank's 51.8% stake in Bank of Baghdad to United Gulf Holding Company (UGH) (a commercial bank located in Bahrain), a sister company of the Kuwait-based bank and another subsidiary of the Kuwait Projects Holding Company (KIPCO). Although the transaction is forecast to have a one-time negative effect by KWD9 mn (around $29.6 mn (IQD36.1 bn)) on Burgan Bank's 2019 net income, part of this effect is likely to be offset by KWD4 mn (around $13.1 mn (IQD16.1 bn)) after the transaction is completed, according to a statement to Boursa Kuwait on Tuesday. The transaction will improve Burgan Bank's quality of assets through reducing its bad debts by around KWD34 mn (around $111.7 mn (IQD136.5 bn)), representing 70 basis points (bps) on the group's bad debts ratio. The transaction is expected to be "profit accretive going forward" for the company and will increase the size of its balance sheet by $1 bn (IQD1.2 trln), UGH said. In the medium term, however, the debt level of the company will rise by $55 mn (around IQD67.2 bn), which it has acquired to fund the deal. The transaction is expected to be completed by the end of March this year. (Zawya, The National)
- ISX will suspend trading of Credit Bank of Iraq (BROI) starting Feb. 3, 2020, due to the GA that will be held on Feb. 6, 2020 to discuss electing 9 original and alternative board members.
- ISX suspended trading of International Islamic Bank (BINT) starting Jan. 28, 2020 due to the GA that will be held on Feb. 2, 2020 to discuss merging with Ur Islamic Bank. The bank will keep its name. BINT will also discuss to increase the capital from IQD100 bn to IQD250 bn through selling its shares to the Turkish Company "Bayt Al-Tamweel - House of Fund International Company" without having to put the shares for public subscription according to article 56/ forth.
- ISX will suspend trading of Mansour Hotel (HMAN) starting Feb. 12, 2020 due to the AGM that will be held on Feb. 17, 2020 to discuss and approve 2018 annual financial statements.
- Modern Chemical Industries (IMCI) resumed trading on Jan. 28, 2020 due to fulfilling ISX request to provide quarterly financial statements.
- Tourist Village of Mosul Dam (HTVM) resumed trading on Jan. 27, 2020 after electing 5 original and 5 alternative board members.