Noticed this bank new to the market recentley. any comment would be welcomed

Guys don't get carried away and buy just because somebody on any board has tipped them. trust me it doesn't always work. By all means listen, pickup any tips but always do your own research before buying otherwise there is a big chance of loosing a lot of hard earned cash.

Thursday March 17, 12:41 PM
Budget - Tax Treatment Changes For Islamic Finance Products

One relatively overlooked item in the Chancellor's Budget was announced changes in legislation relating to the tax treatment of Islamic financial products. After discussions initiated by the Islamic Bank of Britain (LSE: IBB.L - news) - the UK's only Sharia'a compliant bank - Mr Brown has taken on board the need for changes in taxation, including the treatment of profit earned on deposit accounts. In effect, the new measures will put the said products on a level playing field with comparable non-Islamic products.

Islamic deposit accounts are operated under the Sharia'a compliant principle of Musaraba, which is based on a profit sharing arrangement. Customers provide the funds and the bank provides the expertise to use those funds and generate a profit. Such profit is then shared between the bank and its customers.

Until now, income tax has not been withheld from profit paid on Sharia'a compliant savings accounts but has been fully taxable in the hands of a UK customer. The changes will mean that the lower rate tax on 'profits' can be deducted at source, as happens with conventional savings accounts. The result is that some customers, who may currently be required to complete tax returns, won't have to, and it will simplify the process for others.

The changes will also clarify the taxation of profit charged on Islamic financing facilities based on the principle of Murabaha, whereby the bank buys the goods and services and then sells these to the customer at a mark-up, but on deferred payment terms.

The Chancellor's latest announcement builds on changes made by the Government in 2003 relating to Islamic home finance products, which tackled the issue of double stamp duty. The current changes extend the relief for double stamp duty to cover a new Sharia'a compliant property finance product offered in the UK.

http://uk.biz.yahoo.com/050317/22/fefwa.html

"Islamic deposit accounts are operated under the Sharia'a compliant principle of Musaraba, which is based on a profit sharing arrangement. Customers provide the funds and the bank provides the expertise to use those funds and generate a profit. Such profit is then shared between the bank and its customers."

Now, everybody, let's see if we can spot the difference between that and interest. Am I mistaken, or is this all just semantics?

Semantics.
Anti-Semitism.
We'll see.

http://moneyam.uk-wire.com/cgi-bin/articles/200503310730033708K.html

Back in again guys

Thanx Azhar, I've removed the e-mail address. My word.... IBB crashed down a lot today! Any reason why that happened? It was doing very well for the last few days.

I'm out again @69. If you read the report above by prodman that will explain the fall. this will still be going places for longterm holders. I would personally wait for around 50+p before getting in again. tho you never know with this one.

azhar - It is expensive to keep going in or out of these the spread can be large

is it advisable to sell now or just hold?

woodyAM true. But i made 's so I'm out. Rohimul have you bought and @ what price?

Rohimul did you get in AFG just went under 6p and now back to 6.5p

I BOUGHT AT 82, 4000, AT THE MOMENT I'M HAVING A PANIC ATTACK!

Bro with current valuation the sp is way overvalued. I think it should be around 61p. The markets always try to build in the future growth etc.. which in this case is good and they are also thinking about moving into europe etc..

If I was in your position and had cash i would have bought more @57 this am and averaged down. this way you could have been in profit by now and could have decided to hold or sell.

At the moment this could go either way short term but i think your money is pretty safe in the medium to longterm. Then again nothing is safe these days. Always do your own research and don't let your decisions be influenced by others (that includes ME).

Rohimul
You have two choices:
1. Get out now and make a loss based on the price you bought at.
2. Stay in and wait for the price to stabilise and hopefully rise.

These two choices are going to have to be faced if you are trading
shares at some point if a share turns and heads down on you and they
do that from time to time.

Personally I'd get away from the screen for a few minutes, go and make
yourself a cup of tea or coffee, have a ciggie if you smoke, get into
the fresh air for 5 minutes or whatever.

BECAUSE
Only you can make the choice between the two choices above AND
you have more chance of doing it well if you have a clear head and
feel a tad calmer then you appear to feel right now.

Azhar, Stockbunny... thank you both, I think I'll sit back and do some work and make the decision before close of business today. It's starting to recover so fingers crossed.

Good Luck Rohimul and whatever you decide I hope it works
out well for you. I think we have all been in that situation
so understand how you felt.
:>)

azhar is right wait till a more favourable time,
MARKET REPORT:1400 HOURS
News of full-year losses from high-flying Islamic Bank of Britain saw profit takers move in, leaving it 9p lower at 72p.

Another tick down and weekend approaching. possible bad press over the weekend papers on the widening loss which may bring the SP down further next week. My next entry point now 40-50p.

also its reported they will be opening more banks
so more expediture in the short-medium term