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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 13th December 2018).

Note: ISX will be closed during December 26, 2018 – January 1, 2019 due to the end-of-year closing operations. The next session will be held on Jan. 2, 2019.

Please click here to download a table of listed companies and their associated ticker codes.

The RSISX index ended the week at IQD668 (+2.2%) / $717 (+2.2%) (weekly change) (-17.6% and -14.2% YTD change, respectively). The number of week traded shares was 15.7 bn and the weekly trading volume was IQD7.8 bn ($6.4 mn).

ISX Company Announcements

  • According to the ISX announcement, the opening price of the IQD5.0 mn class bonds (CB125) will be IQD5,283,836 on Sunday (Dec. 16, 2018). [Table: 2.3]
  • ISX will suspend trading of Commercial Bank of Iraq (BCOI) starting Jan. 8, 2019 due to the AGM* that will be held on Jan. 13, 2019 to discuss and approve 2017 annual financial results.
  • Iraqi Land Transport (SILT) will hold a GA on Dec. 26, 2018 to discuss dismissal of the current board of directors and re-elect 5 original and 5 alternative members. The company has been suspended trading by an ISC decision since Aug. 6, 2017 for not disclosing 2016 and 2017 annual financial results and 3M18 financial results.
  • ISX will suspend trading of Iraqi Agricultural Products (AIRP) starting Dec. 23, 2018 due to the AGM* that will be held on Dec. 27, 2018 to discuss and approve 2017 annual financial results.
  • Mansour Hotel (HMAN) resumed trading on Dec. 13 after discussing and approving 2017 annual financial results and deciding to distribute 15% cash dividends (IQD0.15 dividend per share, 1.3% dividend yield).
  • Al-Mosul for Funfairs (SMOF) resumed trading on Dec. 12, 2018 after discussing and approving 2015, 2016 and 2017 annual financial results.
  • The Light Industries (ITLI) will hold an AGM* on Dec. 27, 2018 to discuss and approve 2014, 2015 and 2016 annual financial results. The company has been suspended since Jul. 13, 2016.
  • National Islamic Bank (BNAI) resumed trading on Dec. 11, 2018 after discussing and approving 2017 annual financial results and deciding to distribute 4% cash dividend (IQD0.04 dividend per share, 3.8% dividend yield).
  • Cross Transactions: 294.7 mn shares of Asia Al Iraq Islamic Bank (BAIB) on Dec. 13, 2018, which represents 0.3% of BAIB capital. 11.03 bn shares of Iraqi Islamic Bank (BIIB) on Dec. 12, 2018, which represents 4.4% of BIIB capital. 592 mn shares of Al-Nobles for Money Transfer (MTNO) on Dec. 11, 2018, which represents 1.3% of MTNO capital.
Integrity: a prison sentence against the Minister of Finance and the director of the Rafidain Bank earlier


Revealed the Integrity Commission, on Wednesday, a prison sentence against the Minister of Finance and the director of the Rafidain Bank earlier, attributed the reason to damage the amount of 40 billion dinars.

The Department of Investigation in the Authority in a statement received Alsumaria News, a copy of it that "the Criminal Court on the issues of integrity in Baghdad issued two sentences of imprisonment for seven years against the Minister of Finance and the director of the Rafidain Bank precedes, according to the provisions of Article 340 of the Penal Code and the meaning of the articles of participation 47 and 48 and 49 of it,

"indicating that" this came after the agreement of convicted fugitives in 2012, and the joint with other defendants separated cases, causing intentional damage amounted to (40 billion,000) billion dinars with funds and the interests of the body where they were working, through violations committed from Before them ".

"They have granted a loan to one of the fertilizers production companies, despite the lack of economic feasibility of the project for which the loan was granted and the absence of real estate guarantees, despite the large amount of the loan.

This led to the project being stopped and the loan was not paid," he said. , After reviewing the evidence obtained in the case, which is the statement of the legal representative of the Ministry of Finance who requested the complaint against the accused,

in addition to the minutes of the investigative committee composed in the Office of the Inspector General of the Ministry of Finance, which recommended referral of the accused to the competent courts T that brought the court to the conclusion that the definitive and conclusive evidence obtained is sufficient and compelling convictions. "

In the same context, the court itself issued late in October last two sentences of imprisonment for seven years against the owner of the fertilizer production company that obtained the loan and its Commissioner Commissioner,

in accordance with the provisions of Article 444 / XI of the Penal Code and the meaning of Articles 47, 48 and 49 thereof, In order to cause them to cause damage to public money.

The decisions issued against the four accused including issuing arrest warrants, investigating and carrying out the fundamental search of the convicts, supporting the seizure of their movable and immovable property, and granting the injured party the right to seek compensation before the civil courts after the judgments have been decided by the court.…D8%B5%D8%B1/ar

The parliamentary economy reveals efforts to amend the investment law to increase opportunities

The Committee on Economy and Investment parliamentary, on Wednesday, seeking to amend the investment law in the coming days to increase foreign investment, indicating that the current law is an oppressor for all investors.

Nada Shaker Jodat, member of the committee, said: "The Parliamentary Committee on Economy and Investment is considering rewriting and amending the investment law and giving it economic flexibility away from bureaucracy."

"The amendments to the law will grant the investor new concessions to encourage investment and pumping money in the Iraqi market, as well as the formation of a joint committee of all circles to give the investor leave without review dozens of competent departments."

"The law will give the prime minister the power to contract directly with the investor or to form a higher authority capable of granting investors visas and banking facilities," Judd said.

"The amendment of the investment law is an important point to eliminate unemployment and the return of industry and the private sector in Iraq and raise the market value of the Iraqi dinar in light of the inability of the government investment budget to make any development mentioned in all sectors," ss…F%D9%8A%D9%84/

In the framework of the financing agreement signed yesterday by the Government of Iraq (GoI) and the European Union (EU) committing €14 million (US$15.8 equivalent) to support the government’s efforts to ensure increased and more reliable energy access for the Iraqi population, the EU and the World Bank Group (WBG) have signed today a €12.85 million (US$14.5 equivalent) implementation agreement to provide the needed technical assistance.

The initiative complements the ongoing and upcoming World Bank interventions in support of the GoI’s energy sector reforms, including those embedded in the budget support operations series (Development Policy Financing programs – DPFs), the Reimbursable Advisory Services (RAS) for structuring the Gas Value Chain and Gas Marketing in Iraq, and the support to subsidy reforms funded by the ESMAP’s Energy Subsidy Reform Technical Assistance Facility (ESRAF).

Supporting Iraq’s private sector enabling energy sector reforms is a priority development objective in the country both for the EU and the WBG. In a country where the energy sector accounts for more than 90% of central government revenues, addressing energy sector challenges is an essential and complementary action to any public finances related reforms, an area in which the European Union and the World Bank are also partnering in Iraq.

The country is also the world’s 3rd largest exporter of oil and its untapped natural gas reserves are the 12th largest in the world, yet it is forced to import fuel to meet its domestic energy demand, which imposes significant economic and fiscal strain on public finances. Equally important, Iraqi citizens are regularly faced with power shortages and have to resort to more expensive and pollutant sources of energy.

Efficiency in the management of public resources and delivery of services are critical to the achievement of public policy objectives, especially for a resource-rich upper-middle income country like Iraq, as well as fundamental to restore the trust and social contract between Iraqi citizen’s and the country’s institutions, especially in a post-conflict era of stabilisation and reconstruction. “As pledged in the Kuwait Conference, the European Union is committed to help Iraq’s reconstruction efforts and economic and political reforms to secure a better future for its citizens,”

(Source: Relief Web)

The Central Bank is prohibited from filling the position of the manager, his assistant or the shareholder of the withdrawn companies

The Central Bank of Iraq (CBE) announced on Tuesday that it would not be allowed to hold the post of director, assistant or shareholder of companies withdrawn from their licenses.

In a statement received by Alsumaria News, the bank said in a statement that "for the purpose of upgrading the sector of companies to mediate the sale and purchase of foreign currencies and ensure that they are managed by competent people in accordance with the provisions of relevant laws, especially the AML / CFT law, it is prohibited to hold the position of director, Drawn in two cases. "

"The first case concerns companies that have withdrawn their leave because they violated the bank’s instructions or the AML / CFT law," he said.

"The second case concerns those who have been removed from office or sold their shares under a directive issued by this bank," the bank said.…D9%87%D9%85/ar

The German Ministry of Foreign Affairs has contributed an additional EUR 22 million to the UNDP Funding Facility for Stabilization (FFS), which finances fast-track initiatives in areas of Iraq liberated from the Islamic State of Iraq and the Levant (ISIL). This brings the Ministry’s contribution to EUR 80.2 million and the total support from the Government of Germany to EUR 209.9 million.

Acting UNDP Resident Representative for Iraq, Mr. Gerardo Noto, said:

“Enormous progress continues to be made across the liberated areas of Iraq, with seventy percent of those who were displaced during the conflict now returned home. UNDP deeply appreciates the timely funding provided by the German Ministry of Foreign Affairs, and while there remains a great deal of work to do, this generous contribution will help re-establish public services and rebuild social cohesion in the most vulnerable areas.”

The German Ambassador to Iraq, H.E. Dr. Cyrill Nunn, said:

“Germany continues to support Iraq’s stabilization efforts to shore up the progress made to date. As we look to the new Government to step forward to take increasing ownership of stabilisation and more long term development efforts, we will remain a committed partner for the people of Iraq and a strong supporter of the efforts of the United Nations.”

In addition to its Ministry of Foreign Affairs, Germany also contributes to FFS through its Ministry for Economic Cooperation and Development implemented by KfW, the German development bank.

At the request of the Government of Iraq, UNDP established the FFS in June 2015 to facilitate the return of displaced Iraqis, lay the groundwork for reconstruction and recovery, and safeguard against the resurgence of violence and extremism.

The Facility has a portfolio of over 3,000 projects – half of which are already completed – in the provinces of Ninewah, Anbar, Salah Al-Din, Diyala and Kirkuk.

The FFS repairs essential public infrastructure such as electricity, water and sewage system grids. It rebuilds schools, health centres and homes, and provides people with short-term employment through public works schemes in areas directly impacted by ISIL.

This investment in critical services sets the stage for recovery and resilience work, as well as longer-term reconstruction and development activities. Over 95 percent of all stabilization projects are carried out by local private sector companies, providing a key source of employment for local people.

(Source: UN)

The crisis of "Dinar Alalak" pushing Iraq to open the files of currency bleeding and corruption exchange licenses

For the third day in a row, the crisis of what is popularly known as "Dinars Al-Aalak" continues after the issuance of the new version of the Iraqi currency categories 250 and 500 dinars and 1000 dinars and the name of the Governor of the Central Bank acting Ali Muhsin Al-Alaq, which is contrary to the law that restricts the signature through the words of the Governor of the Central Bank or Signing above the words governor only.

The new "Arab" received information from informed sources, confirming that the Iraqi parliament will discuss, Thursday, during its scheduled morning the crisis of the new currency , while calling for deputies of the Sadrist movement and the Communist Party and the Axis Alliance to open the file of the Central Bank of Iraq fully and investigate charges The bleeding of the hard currency and the selectivity of the bank in granting work permits to exchange and transfer companies, and procedures for the sale of the dollar, as well as the reason for the survival of the post of governor by proxy.

An official in the legal department in the Iraqi parliament for "the new Arab", it is scheduled to be opened these files during today’s session, and in case of any circumstances or lack of completion of discussions will be completed the next session on the requests submitted to the President of Parliament by deputies.

The parliamentary official, who declined to be named, that the repercussions of the crisis put the central bank governor on the currency in contrast to the Iraqi law sparked a wide debate on the street, which led to the direction of Parliament to open the file of the bank as a whole.

The governor of the current bank is a member of the Islamic Dawa Party led by Nuri al-Maliki, and took the post of acting governor in 2014 and was before Secretary General of the Iraqi Council of Ministers during the first and second Maliki.

The issuance of the new Iraqi currency within the treatments of the crisis of cash and the damage of small currencies in the category of 250 dinars and 500 and 1000 dinars, and carried the new currencies, another change sparked a controversy, raising the verse "Say Allah is one" for the Iraqi currency, which is a tradition since the Abbasid state in Baghdad and until today , And was replaced by a painting of the marshes of southern Iraq, which are natural water bodies listed on the World Heritage List recently.

Official in The Central Bank of Iraq confirmed to the "new Arab" that what has been offered from the banknotes actually in the market during the past days through government and private banks amounted to about 7 billion dinars, and there are about 40 billion more ready to put in the market gradually during the coming period all bear the name And there are other sums that will reach Iraq, also printed in Switzerland.

The official, who declined to be named, added that another huge amount of the new currency was due to drop to the Iraqi market in early November, but there are doubts about this possibility because of strong opposition by parliament and demands to withdraw what was removed to the market immediately.

For its part, the Central Bank of Iraq issued a statement saying that "the bank has the right under the regulations to determine the categories of currency and metals, paper and its dimensions, forms, material, content, weight, design and other features.

He stressed that "the banknotes in various countries contain the signature of the issuing authority, which is the governor of the Central Bank. Some of them put the signature of the governor on his name, including the person who puts the signature without a name.

The central bank cited the dinar currency issued in 1932, pointing out that this approach is adopted by the central banks of Egypt, Saudi Arabia, UAE, Lebanon, Turkey and others, so the Central Bank of Iraq decided to include the name of the governor when reprinting or issuing any cash, The trends found in the signature alone lack the significance required by the word (governor) on the banknote.

While the move was considered a political propaganda for the governor of the Central Bank by proxy, members of the Iraqi parliament for the "new Arab" that the step indicates the weakness of institutions in the country to the extent that the government and parliament not aware of the new model of the currency only after it was issued.

A member of the Iraqi parliament , Asaad al – Abadi’s "new Arab", " The Governor of the Central Bank violated the law twice the first put his name on the new Iraqi currency, and the second that the law requires the bank to notify the Ministr of finance

legislative, executive and regulatory institutions , such a move as stipulated in articles 32 And 33 of the law of the Central Bank of Iraq for 2004, so this error must be addressed, and is currently being developed frameworks and axes to open the case and discussed in the parliament and take decisions

On the part of the member of the Interim Finance Committee in the Iraqi parliament Alia Nassif, the "new Arab", that "there Law The governor and the central bank must be adhered to and there is no provision in the law indicates that the name of the governor may be added to the currency in addition to signing.

"Therefore I wish that the Governor of the Central Bank would not go in this direction because the perpetuation of the name shall be the work and the disengagement of the Central Bank of the existing pollutants either in the currency or the opening of private (private) banks absurdly … These are the acts that perpetuate and not the name in the banknote, Nassif.

for his part, MP said the national coalition Raad Aldhlki, for "new Arab", he said that if there were a real state of institutions there was a transparent debate on this subject with specialists in this field in order not to fall into these obstacles which we hope will not be negative repercussions on the people Iraqi and not be paid for through the worsening ofliving.

Aldhlki explained that " The Iraqi parliament will issue a clear and explicit decision by themeeting, on Thursday, what he sees fit to contain this and treat. "

Meanwhile, the Iraqi financial expert said Ahmed al – Hamdani for" new Arab "

Al-Hamdani pointed out that the Iraqi currency is printed in Switzerland and the state costs large amounts in hard currency and can be considered as a net now because withdrawing or destroying it means losing large amounts of money to Iraq, but at the same time the central bank governor and its board should be held accountable not only for the currency but also for charges and defaults Many people talk about, from specialists and observers since the transformation of one of the most important positions in the Iraqi state from the position of Mali to another political, according to his saying.

The Central Bank warns of the repercussions of dependence on oil


The Governor of the Central Bank of Iraq Ali Al-Alaq said that the bank is facing challenges due to financial policies, stressing during the session of the "relationship between the financial and monetary policies," which was held within the activities of the fourth annual conference of the bank on Monday, the widening gap between the non-oil revenues that do not Covering only 10 per cent of expenditures, and relying on oil resources to cover the remaining expenditures, has put the country in trouble as oil prices have declined in recent years.

He added that this heavy reliance on oil increases the risk ratios and increases the pressure on the central bank to cover the gap, noting that oil revenues fell about 70 per cent, while the government reduced about 20 per cent of its expenses, to compensate for this reduction.

He pointed out that these problems led to two options, either the sacrifice of the central bank part of its reserves of foreign exchange , while the second option to make changes in the exchange rate, a move that harm the citizens and increase the richness of the rich and the impoverishment of low-income, stressing that the relationship between the two policies Finance and cash are a real challenge for the central bank.

The bank maintains a high level of foreign reserves and continues its efforts to stabilize the local currency, control inflation and increase economic growth in the country.

He pointed to the widening of the volume of non-performing loans in Iraq to reach 6 trillion dinars out of 37 trillion dinars, which is the total volume of loans, stressing that banks cut 2.5 trillion dinars of profits or 16% of capital to cover this problem, calling for the need to strengthen the rule of law To face the phenomenon of non-performing loans.

He referred to the initiatives launched by the Central Bank, including the "industrial, agricultural and industrial lending initiative of 5 trillion dinars, as well as the initiative of financing small projects by a trillion and a half through private and public banks, the largest in the history of Iraq."

The stock market is announcing its last meeting this year

The Iraqi Stock Exchange announced on Saturday that the 25th of this month is the last day for the trading of shares of its companies, indicating that it will open the way for brokerage firms to complete the settlement activity.

"The market decided that the last trading session for 2018 will be on Tuesday, 25/12/2018, while the first trading session for 2019 will be on Wednesday, 2/1,
" said Taha Ahmed Abdul Salam, the market’s executive director. / 2019 ".

"The end of the session on the 25 of December comes for the purpose of giving way to the brokerage companies to complete the settlement of activity in accordance with the procedures of Iraqi banks and the clearing bank."

The Iraqi Stock Exchange has used electronic trading systems and central depository since 2009 and seeks to launch the Internet trading system for investors, and organizes five trading sessions a week from Sunday to Thursday,

and included 103 Iraqi shareholding companies representing the sectors of banking, telecommunications, industry, agriculture, insurance, financial investment and tourism And hotels.…D9%84%D8%B9/ar