Equity price of HB Grandi in the Stock Exchange increased by 3 percent

Equity price of HB Grandi in the Stock Exchange increased by 3% on Thursday, the 22nd of January. A total of 15 transactions with shares of HB Grand reached the total value of 296 million Icelandic kronas during the day. The next day, the Marine Research Institute of Iceland announced that it would advise Sigurður Ingi Jóhannsson, Minister of Fisheries and Agriculture, to increase the capelin quota by at least 100 thousand tons.

Due to this, the economics student Ólafur Heiðar Helgason asks if news of the consultancy of the Marine Research Institute of Iceland got around before it was made public and if someone took advantage of that information in order to buy shares of HB Grandi.

Since the market closed on Thursday, the 22nd January, stock price in HB Grandi has increased by 8.2% and those who bought shares in the company on Thursday made a substantial profit on the purchase. Ólafur points out that HB Grandi owns 19& of all the capelin quota of Iceland. The value of the added capeline catch might amount to 25 billion Icelandic kronas and HB Grandi could increase its income by five billion Icelandic kronas.

See also: Increased value of shares of HB Grandi due to an increased capeline quota

In worst case scenario, criminal business condcuct

Ólafur says that it is a general assumption that the measurements of the institution are not any secrets. He says that if data from the institution has leaked out beforehand and purchase of the shares has been based on that information, it might be punishable by law.

„It seems to me that individuals, more informed than the public, have jumped at the opportunity of buying shares of HB Grandi on the 22nd of January, certain that the stock price would skyrocket when an increased quota would be announced. Stock exchange based on insider information is punishable by law and if my suspicion proves to be founded, then this is totally unacceptable and possibly a criminal deed," Ólafur says.

Consequently, Ólafur says it must be looked at how the Marine Research Institute of Iceland handles information. „In worst case scenario, this is a testament to criminal business conduct and unacceptable administration on behalf of the Marine Research Institute of Iceland. At best, there is a substanstial reason for looking into how this public institution handles price-formatting information that people may have substantial personal gain by misapplying it against the public,“ Ólafur says.

Director says that the measuring is confidential

Jóhann Sigurjónsson, CEO of the Marine Research Institute, says he does not have any reason to believe that there is anything unusual about transactions with shares in HB Grandi. He says that anyone is able to watch the research vessels of the Marine Research Institute and make his own conclusions, based on that. „You only need to go the website of the Marine Research Institute and watch the ships sail across the fishing grounds. Everybody is able to do that. If a ship travels a lot in a certain area, then it is measuring and there is some quantity of fish there,“ Jóhann says.

Jóhann says that his employees are bound by confidentiality in everything related to consulting on the long term utilization of fish stocks. „We put emphasis on getting this information equally to everybody as soon as possible. But of course we must ensure sufficient quality. In the earlier week [January 23rd] we did not have satisfactory data available in order to pinpoint the catch limits. But in order to prevent speculations all week, we announced that the catch limits would be increased at least by 100 thousand tons,“ Jóhann says.

Jóhann points out that fishing vessel owners are able to draw their own conclusions from what they think they can see in the ocean. „They may have speculations. They're also at the fishing grounds and are able draw conclusions from what they think is being more or less than in recent years. But it is not a solid basis as they don't have this total view that we think we have,“ he says.