Millionday Special News Time 7/30/15 Part 1 of 2
Welcome to dinarupdates.com for News Time with Millionday!!
Millionday: THIS WILL ALL BE ABOUT ONE SUBJECT AND VERY INFORMATIVE
Millionday: There are frontier investment markets, and then there is Iraq. Bombings and fighting killed at least 42 people on Thursday alone, in nine or more separate explosions from Baghdad to Fallujah;
yet so commonplace is the violence that the news merited few headlines. After all, at least 24 had died in explosions the previous day.
Yet despite the violence and uncertainty, fund managers and bankers are venturing in to the country, attracted by oil wealth and a surprisingly upbeat outlook for national GDP growth.
Millionday: On Fridayh FMG, an emerging market and frontier research group, put out an investment report on Iraq, arguing that: “There is another more promising side to Iraq.”
In the past decade, the report notes, Iraq has tripled its oil production, posted GDP annual growth rates of around 10 per cent, and seen the market capitalisation of its stock exchange almost triple in three years.
Millionday: NOTE -- THE HUGE EXPECTATION OF OPPORTUNITY IN INVESTMENT OUT WEIGHS THE FEAR OF LOSS AND IN SOME CASES DEATH –
HMM -- MAKES YOU WONDER JUST HOW HUGE THE GAIN WILL BE IN ALL AREAS --- FUNDS--TRADE--STOCKS--ETC -ETC
Millionday: NOTE -- UNDERSTAND THAT ALL THE INFORMATION IS SO IMPORTANT YOU WILL SEE TONIGHT -- DONT MISS ANY
Millionday: FMG is not alone in noting this: Iraq’s own central bank is expecting 9.4 per cent annual growth in GDP to 2016,
Bank of America Merrill Lynch has said the economy could triple in size by 2024, and Citi has predicted it could become a $2tn economy by 2050, as the country becomes one of the largest oil exporters worldwide. The IMF has said Iraq could gain almost $5tn in revenues from these oil exports between now and 2035.
Millionday: NOTE -- BANK OF AMERICA PREDICTS IT TO TRIPLE -- WOW
Millionday: From the investor perspective, the question is how to play it. Economic projections like that are all well and good, but how can they be realised against a background of bloodshed?
The cold reality is that the violence hasn’t had an impact on the behaviour of equities. FMG argues that over the last five years,
nowhere has shown faster EPS growth rates than the Iraq Stock Exchange, although it has not yet been reflected in share prices.
“We are of the view that Iraqi equities have potential for one of the greatest rallies in the developing market universe,” the report says.
Millionday: NOTE -- LOOK AT THAT -- WHOOPOW
Millionday: NOTE>>>>>“We are of the view that Iraqi equities have potential for one of the greatest rallies in the developing market universe,”
Millionday: NOTE -- HERE IS INFORMATION ON THE ISX RIGHT NOW
Millionday: As it stands today, the stock market is dominated by telecoms and banking. Out of 82 listed companies in Iraq, 21 are private banks, and this is an example of where FMG sees opportunity.
It says profit before tax was up 29 per cent CAGR between 2007 and 2012 in the banking sector, yet quality banks trade between 1 to 1.5 times book value.
Only 15 per cent of Iraqis have bank accounts, giving room for growth, and in a largely state-dominated sector (Rashid Bank and Rafidan Bank, the biggest, are both state-owned),
the private banks are starting from a low base of just 10 per cent of the industry’s assets. FMG highlights Mansour Bank as an example of a good opportunity, having improved net income 115 per cent last year.
Millionday: Although local investors account for 90 per cent of the modest daily volume on Iraq’s bourse, the market has received greater international attention ever since the listing of Asiacell last year,
the largest company to be floated in the Middle East since 2008. That company now has 11m subscribers and offers a 5.5 per cent yield, but is on a trailing P/E of just 7.7 times.
Millionday: NOTE - LETS THINK ABOUT THIS -- THIS IS DOMESTIC -- the NEW Information i am going to show you is huge when you keep just the fact that this in-country only in your mind --
Millionday: READ EVERY WORD OF THIS LAST PART -- I KNOW I ENJOYED IT
Millionday: Aside from frontier fund managers – the Euphrates Iraq Fund, Invest AD Iraq Opportunity Fund and Sansar Capital’s Frontier Fund being further examples – other financial services businesses are looking closely at Iraq.
In October, the FT reported that Citigroup, JP Morgan and Standard Chartered were all planning to open bank branches in Iraq, and in 2011 reported that Morgan Stanley, Goldman Sachs, HSBC, Citi and BNP Paribas were sending bankers to Iraq to pitch for advisory work,
underwriting and project finance. HSBC and Morgan Stanley led the Asiacell IPO, while Zain Iraq, which is expected to list this year, appointed Citi, BNP Paribas and National Bank of Kuwait as advisors on the listing several years ago.
Nadita: You think ISQ will be offering their stocks in Nasdaq soon? Nadita: I mean ISX lol
Millionday: WE HAVE SO MUCH INFORMATION ON JUST THAT -- YOU WILL LOVE THE SPECIAL NEWSTIME -- THAT IS FOR SURE --SMILE
militia man: Are you suggesting that the report is so huge, is because all the powerhouses are open and now public about iraqs future?
And if so, would you suspect that they (funds, banks,etc.) are fully locked and loaded now and in position for the go live with ER-MR time to start?
militia man: We have the gov cutting pay 50%, taxes and tariffs to start at the borders on the first of august just as we see bonds being sold same time line, yet we see no article 8 or credit rating yet, care to comment on that as well.
Millionday: THERE ARE MANY MAKING IT VERY CLEAR ABOUT THE UPCOMING MANY Ways to monopolize --- oh yes
tubbyone: Is this chain still accurate to you?; Iraq announced they will implement tariffs, customs & taxes across the entire country by Aug. 1, 2015.
If they do they say that it will generate over 2 billion dinars within a couple of months. WTO said that Iraq needs tariffs to be full members of WTO.
They cannot become member nation of WTO w/o international currency, article 8. CBI says there could not be a more perfect time to delete the zeros than right now...
Millionday: MILITIA MAN -- I EXPECT THE RATINGS AFTER THE ECONOMIC REFORM -0- BUT THIS IS MY OPINION
Millionday: TUBBY THAT CHAIN WAS NEVER MINE
Millionday: NO -- IRAQ DOES NOT DO WELL WITH EXACT DATES BY WHAT I HAVE SEEN AND ---- THE WTO STATEMENT I HAVE NOT SEEN IN INK ANYWHERE
Millionday: Iraq, is not a place that immediately comes to mind when thinking of attractive investment opportunities. However, it may show some promise if examined carefully.
Since the US invasion of Iraq, the stock exchange has quickly developed and led to rapidly developing capital markets. In 2009, the Iraqi stock exchange went electronic.
Since then, over 40 broker/dealers have been registered and provide access to the market for even foreigners.
The fact box below provides a brief overview of the country. Of course Wikipedia will give you a much better description of the country and its economy.
Millionday: NOTE -- WIKIPEDIA IS NOT A GREAT INFORMATION SITE WITH ACCURACY GUARANTEES --
Millionday: THE REASON IS BECAUSE IT CAN BE ADDED TO AS A BLOG ETC
Millionday: NOTE -- THIS REPORT IS NOT FROM WIKIPEDIA
Millionday: Iraq’s economy has grown by 5% on average over the past 5 years, and this has contributed to a rapidly rising GDP and GDP per capita.
Unemployment remains a key concern (15%), as well as inflation pressure. This is all aside from the obvious security concerns that are ever-present in Iraq.
The stock exchange itself operates on very simple terms, and is easily understood by anyone who has traded in US equity markets before (the Iraqi Stock Exchange received significant assistance from various US groups).
T+1 settlement is in fact better than most Frontier Markets. The fact box below provides a brief overview of the stock exchange.
Millionday: NOTE -- UNDERSTAND THE BARRIERS EXPERIENCED HOWEVER --- OH BOY ---
Millionday: Now that you have a general understanding of the market, the pertinent question would be if you can invest; you can.
Iraq has virtually no foreign investor restrictions, and is one of the easiest markets to invest in, globally. You need to invest at least $10,000 USD initially, and each subsequent wire must be for at least $1,000 USD.
The minimum buy/sell order is for 100,000 shares, and the fee for trading is generally between $10 and $20 per trade.
Millionday: NOTE -- AND --IS --OPEN--OF -- THE --EASIEST--MARKETS--TO--INVEST--IN--GLOBALLY -- WHOOOPOW LOVE IT !!!!
Millionday: BANK LAW
Comments may be made at the end of Part 2 Thank You