30 Nov 2009
MARICO
The Board of Directors has recommended cash dividend @ 25% (Tk. 2.50 per share) for the year ended September 30, 2009. Date of AGM: 19.01.2010. Time: 11:00 AM, Venue: Factory Premises of the Company at Mouchack, Kaliakoir, Gazipur. Record date: 13.12.09. The Company has also reported Net Asset Value (NAV) per share of Tk. 49.86, Basic EPS of Tk. 16.45 and Net Operating Cash Flow per share of Tk. 21.65 for the year ended September 30, 2009 as against Tk. 26.90, Tk. 9.43 and Tk. 16.57 respectively for the same period of the previous year. The company has also informed that the Board of Directors has decided to disclose the setting up of first Kaya Skin Clininc in Bangladesh at Gulshan, Dhaka. Kaya Skin Clinic is the center offering dermatology led cosmetic skin care solutions in India and Middle East. The formal launching will be announced on time. It is also considering opening a few more clinics in near future. In this regard, the unit will be in investment mode for next 3-4 years. Requisite amendment in Memorandum of Marico Bangladesh Ltd. is under process with Honorable High Court for incorporation of Kaya business.
29 Nov 2009
GP offsets banks' fall
Dhaka stocks continued to gain yesterday for the fourth consecutive day, as the telecommunication sector advanced offsetting the fall in banking shares.
DSE General Index, the benchmark index of Dhaka Stock Exchange, rose 18.86 points, or 0.44 percent to 4,292.77.
The telecommunication sector gained heavily as Grameenphone (GP) shares advanced 3.74 percent.
The banking sector went down after gaining for six straight sessions. The whole sector went down by 2.54 percent.
Among the biggest losers, Mercantile Bank, Standard Bank and Trust Bank declined by more than 5 percent each, while Pubali Bank and Rupali Bank were the only banks that traded in safe.
Although the market was up from the previous day's close, it lost the gaining streak on profit taking, especially in the banking sector shares, said an analysis of BRAC-EPL, an investment firm.
The broader DSE All Share Price Index increased 12.51 points, or 0.35 percent, to 3,559.16.
The non-bank financial institutions finished mixed with the whole sector marginally up by 0.2 percent.
Most of the mutual funds, pharmaceuticals and energy and power sector shares also finished high.
Advancers beat losers 140 to 93. Four securities however remained unchanged. A total of 2,88,90,798 shares and mutual fund units worth Tk 882.25 crore were traded on the prime bourse.
Beximco topped the turnover leaders with 23,13,000 shares worth Tk 70.22 crore being traded.
Dulamia Cotton was the largest gainer that rose 16.59 percent, while Purabi General Insurance was the largest loser declining 9.2 percent on the DSE.
Chittagong stocks also marked a slight rise yesterday. The CSE Selective Categories Index increased 28.56 points, or 0.35 percent, to 8,081.71. The CSE All Share Price Index gained 35.33 points, or 0.28 percent, to 12,518.53.
A total of 39,30,598 shares and mutual fund units worth Tk 77.23 crore changed hands on the port city bourse. Of the traded securities, 93 advanced, 63 declined and three remained unchanged.
Grameenphone topped the turnover leaders with 4,06,000 shares worth Tk 7.04 crore being traded on Chittagong Stock Exchange.
DSE General Index, the benchmark index of Dhaka Stock Exchange, rose 18.86 points, or 0.44 percent to 4,292.77.
The telecommunication sector gained heavily as Grameenphone (GP) shares advanced 3.74 percent.
The banking sector went down after gaining for six straight sessions. The whole sector went down by 2.54 percent.
Among the biggest losers, Mercantile Bank, Standard Bank and Trust Bank declined by more than 5 percent each, while Pubali Bank and Rupali Bank were the only banks that traded in safe.
Although the market was up from the previous day's close, it lost the gaining streak on profit taking, especially in the banking sector shares, said an analysis of BRAC-EPL, an investment firm.
The broader DSE All Share Price Index increased 12.51 points, or 0.35 percent, to 3,559.16.
The non-bank financial institutions finished mixed with the whole sector marginally up by 0.2 percent.
Most of the mutual funds, pharmaceuticals and energy and power sector shares also finished high.
Advancers beat losers 140 to 93. Four securities however remained unchanged. A total of 2,88,90,798 shares and mutual fund units worth Tk 882.25 crore were traded on the prime bourse.
Beximco topped the turnover leaders with 23,13,000 shares worth Tk 70.22 crore being traded.
Dulamia Cotton was the largest gainer that rose 16.59 percent, while Purabi General Insurance was the largest loser declining 9.2 percent on the DSE.
Chittagong stocks also marked a slight rise yesterday. The CSE Selective Categories Index increased 28.56 points, or 0.35 percent, to 8,081.71. The CSE All Share Price Index gained 35.33 points, or 0.28 percent, to 12,518.53.
A total of 39,30,598 shares and mutual fund units worth Tk 77.23 crore changed hands on the port city bourse. Of the traded securities, 93 advanced, 63 declined and three remained unchanged.
Grameenphone topped the turnover leaders with 4,06,000 shares worth Tk 7.04 crore being traded on Chittagong Stock Exchange.
24 Nov 2009
ALPHATOBA
The Board of Directors did not recommend any dividend for the year ended on 30th September, 2008. Date of 42nd AGM: 24.12.09, Time: 12:30 p.m., Venue: Factory Premises, Basundia more, Jessore. Book closure of 42nd AGM: 16.12.09 to 24.12.09. The company has also reported Earning per share (EPS) of Tk. (41.06) and Net Asset Value (NAV) per share of Tk. 23.61 for the year ended 30th September 2008.
23 Nov 2009
Banks drive stock rally
Dhaka stocks rallied for a third day, as bank shares advanced heavily in back-to-back sessions yesterday.
The benchmark index of Dhaka Stock Exchange, DSE General Index, shot up 70.82 points, or 1.68 percent to 4,273.91, reaching a new high.
The banking sector gained 3.99 percent as a whole as most banks increased more than 4 percent, of which Dhaka Bank had the highest gain with a 9.54 percent rise.
Starting off on a positive note, the market was always up from the previous day's close. It rose to 4,280 points before closing at 4,273.91 points.
The broader DSE All Share Price Index went up 58.84 points, or 1.68 percent, to 3,546.64.
The telecom sector, which comprises only Grameenphone, also gained in back-to-back session, going up 1.69 percent, as shares of the largest mobile phone operator finished higher at Tk 168.50.
The non-bank financial institutions lost, although ICB and IDLC Finance posted marginal gains.
Among the mutual funds, three gained more than 5 percent, but the sector was marginally down as most others lost.
Pharmaceuticals, fuel and power and cement companies traded up, while insurance companies were in the red.
Advancers beat losers 122 to 107 with four securities remaining unchanged. A total of 3,09,24,301 shares and mutual fund units worth Tk 1,058.94 crore traded on the prime bourse.
Social Islami Bank topped the turnover leaders with 14,35,400 shares worth Tk 40.64 crore being traded.
Dhaka Bank was the largest gainer that rose 9.54 percent, while Samata Leather was the largest loser that declined 7.16 percent on the DSE.
Chittagong stocks marked a sharp rise yesterday, as the bourse adjusted the prices of Grameenphone shares in its key index based on last five trading days' weighted average prices.
The CSE Selective Categories Index went up 348.94 points, or 4.52 percent to 8,053.14. The CSE All Share Price Index gained 223.45 points, or 1.82 percent to 12,483.2.
A total of 38,01,983 shares and mutual fund units worth Tk 78.30 changed hands on the port city bourse. Of the traded securities, 87 advanced, 67 declined and three remained unchanged.
Beximco topped turnover leaders with 2,34,600 shares worth Tk 7.10 crore being traded on the CSE.
Gulf Foods, which advanced 20 percent, was the biggest gainer, while Standard Ceramic, which declined 9.16 percent, was the biggest loser.
Dhaka stocks hit new mark on financials, gen insurers
Dhaka stocks soared to a new height Sunday as the investors snapped up financials in droves ahead of the Eid-ul-Azha festival in anticipation of year-end good returns, dealers said.
The benchmark DSE General Index (DGEN) added 58.33 points or 1.40 per cent to close at 4203.08, its highest ever mark since
Tuesday when it ended at 4149.82.
Other indices also made new marks with the broader All Shares Price Index (DSI) gaining 51.44 points or 1.49 per cent to 3487.80 while DSE-20 Index (DS20) comprising blue chips finishing at 2402.59, up 38.04 points or 1.60 per cent.
Analysts said investors banked on financials and general insurers amid growing optimism about the health of the country's banking system and the insurance industry.
The banking sector alone gained 3.48 per cent as a number of banks rose more than five per cent each including City Bank which spiked 13.88 per cent and Pubali Bank which grew 10.37 per cent. The two were the day's leading gainers.
"Rally by banking issues led the market to a record high," said Abdul Awal, managing director of the Multi Securities and Investment Ltd.
Financials continued to shine as investors renewed faith in the banking companies ahead of their year-end account closing, he said.
Another analyst said most of the banking issues - the bellwether of the DSE --- have been trading below expectations for long, which made them attractive to investors in recent days.
Grameenphone, which now accounts for more than 12 per cent of the market, rose 1.03 per cent to close at Tk 165.70. Its transaction, however, dropped sharply to 12th position.
Investors traded in high spirits before the next week's four-day Eid-ul-Azha holiday, boosting total turnover to Tk 9.44 billion, up 9.51 per cent over the previous session.
The market was skewed towards gainers as out of 236 issues traded, 178 gained, 63 ended into negative and five remained unchanged.
Social Investment Bank Ltd (SIBL) was the top turnover leader for the second straight session with shares worth Tk 406.44 million changing hands.
The benchmark DSE General Index (DGEN) added 58.33 points or 1.40 per cent to close at 4203.08, its highest ever mark since
Tuesday when it ended at 4149.82.
Other indices also made new marks with the broader All Shares Price Index (DSI) gaining 51.44 points or 1.49 per cent to 3487.80 while DSE-20 Index (DS20) comprising blue chips finishing at 2402.59, up 38.04 points or 1.60 per cent.
Analysts said investors banked on financials and general insurers amid growing optimism about the health of the country's banking system and the insurance industry.
The banking sector alone gained 3.48 per cent as a number of banks rose more than five per cent each including City Bank which spiked 13.88 per cent and Pubali Bank which grew 10.37 per cent. The two were the day's leading gainers.
"Rally by banking issues led the market to a record high," said Abdul Awal, managing director of the Multi Securities and Investment Ltd.
Financials continued to shine as investors renewed faith in the banking companies ahead of their year-end account closing, he said.
Another analyst said most of the banking issues - the bellwether of the DSE --- have been trading below expectations for long, which made them attractive to investors in recent days.
Grameenphone, which now accounts for more than 12 per cent of the market, rose 1.03 per cent to close at Tk 165.70. Its transaction, however, dropped sharply to 12th position.
Investors traded in high spirits before the next week's four-day Eid-ul-Azha holiday, boosting total turnover to Tk 9.44 billion, up 9.51 per cent over the previous session.
The market was skewed towards gainers as out of 236 issues traded, 178 gained, 63 ended into negative and five remained unchanged.
Social Investment Bank Ltd (SIBL) was the top turnover leader for the second straight session with shares worth Tk 406.44 million changing hands.
22 Nov 2009
Merchant bankers Saturday formed a new body with a pledge to develop the stock market further, making it as a source of fund for the country's industr
Chairman the Board of Trustees of Transparency International Bangladesh and former adviser to the caretaker government M Hafizuddin Khan joined MIDAS Financing Ltd as an independent director recently.
Chairperson of the company and former adviser to the caretaker government Rokia A Rahman welcomed him at the 160th board meeting of the company held in the city recently.
MIDAS directors Samson H Chowdhury, Shaikh A Halim, AJ Masudul Haque Ahmed, Mirza Ali Behrouze Ispahani, Md Shamsul Alam, Rina Kibria along with the Managing Director (cc) Shafique-ul-Azam, General Manager Md Atiar Rahman Ansary and Company Secretary Md Din Islam Miah were also present at the meeting.
Chairperson of the company and former adviser to the caretaker government Rokia A Rahman welcomed him at the 160th board meeting of the company held in the city recently.
MIDAS directors Samson H Chowdhury, Shaikh A Halim, AJ Masudul Haque Ahmed, Mirza Ali Behrouze Ispahani, Md Shamsul Alam, Rina Kibria along with the Managing Director (cc) Shafique-ul-Azam, General Manager Md Atiar Rahman Ansary and Company Secretary Md Din Islam Miah were also present at the meeting.
New body of merchant bankers pledges to develop stock mkt
Merchant bankers Saturday formed a new body with a pledge to develop the stock market further, making it as a source of fund for the country's industrialisation.
They said they are committed to work together for taking the market to a new height and will strive to woo more companies to list with the stock market in an effort to bridge gap between demand and supply for the shallow market.
The promises were made after institutionalising the merchant bankers association through first ever election since 1997, the launching year of Bangladesh Merchant Bankers Association (BMBA), which has now 26 members.
An 11-member executive committee under leadership of M Fazlur Rahman, head of invest banking division of AB Bank, was elected.
"As an institution the merchant bankers or the association could not play its due roles for the development of the capital market for several reasons," said Rahman, in his immediate reaction after the election.
"Now we want to contribute developing our stock market. We want industrialisation through capital market, bring more new issues to the market and create a balance between the money market and capital market," he said.
He said the association under the new leadership will closely work with the regulatory body as well as the investors to take the market a new height.
Sheikh Mortuza Ahmed, head of merchant banking division of Prime Bank and who was elected as vice-president of BMBA, said the merchant bankers have no institutional representation in the market, and with the election, representation of the merchant bankers as an institution has been established.
"Now it's the beginning of a new era," he said.
M Abdur Rouf, chief executive officer of ICB Capital Management Limited, has been elected secretary of BMBA, while Abdul Awal, managing director of Bangladesh Mutual Securities Limited, has been elected treasure.
Apart from, Arif Khan of IDLC Finance Limited, Akter Hossain Sannamat of Prime Finance and Investment Limited, Mohammad Ahsanullah of Trust Bank Limited, Mr. A. Malek Shamsher of Lankabangla Finance Limited, Golam Sarwar Bhuiyan of GSP Finance Company Limited, Tapan Krishna Poddar of Alliance Financial Services Limited and Mohammad A Hafiz of AAA Consultants and Financial Advisers Limited have been elected as executive committee members.
They said they are committed to work together for taking the market to a new height and will strive to woo more companies to list with the stock market in an effort to bridge gap between demand and supply for the shallow market.
The promises were made after institutionalising the merchant bankers association through first ever election since 1997, the launching year of Bangladesh Merchant Bankers Association (BMBA), which has now 26 members.
An 11-member executive committee under leadership of M Fazlur Rahman, head of invest banking division of AB Bank, was elected.
"As an institution the merchant bankers or the association could not play its due roles for the development of the capital market for several reasons," said Rahman, in his immediate reaction after the election.
"Now we want to contribute developing our stock market. We want industrialisation through capital market, bring more new issues to the market and create a balance between the money market and capital market," he said.
He said the association under the new leadership will closely work with the regulatory body as well as the investors to take the market a new height.
Sheikh Mortuza Ahmed, head of merchant banking division of Prime Bank and who was elected as vice-president of BMBA, said the merchant bankers have no institutional representation in the market, and with the election, representation of the merchant bankers as an institution has been established.
"Now it's the beginning of a new era," he said.
M Abdur Rouf, chief executive officer of ICB Capital Management Limited, has been elected secretary of BMBA, while Abdul Awal, managing director of Bangladesh Mutual Securities Limited, has been elected treasure.
Apart from, Arif Khan of IDLC Finance Limited, Akter Hossain Sannamat of Prime Finance and Investment Limited, Mohammad Ahsanullah of Trust Bank Limited, Mr. A. Malek Shamsher of Lankabangla Finance Limited, Golam Sarwar Bhuiyan of GSP Finance Company Limited, Tapan Krishna Poddar of Alliance Financial Services Limited and Mohammad A Hafiz of AAA Consultants and Financial Advisers Limited have been elected as executive committee members.
19 Nov 2009
Dhaka shares rebound sharply on SC verdict
stocks rebounded sharply on Thursday after the Supreme Court's verdict that upheld death sentences to convicted Sheikh Mujib killers lifted up investors' mood.
The investors snapped up Grameenphone and banking shares in a hectic afternoon trading when news came that the country's highest court rejected the appeals of the ex-army officers, paving the way for their execution within months.
The DSE general index (DGEN) shot up 66.96 points or 1.64 per cent to end at 4144.74 as most of the banks gained and the country's largest mobile phone operator rose nearly six per cent.
"With this verdict, the investors have heaved a sigh of relief. The judgment has removed a long-standing irritation in our national polity, resulting in a bullish mood among investors," stock expert Yawar Sayeed said.
The GP shares, which made debut on Monday, dragged the market down in the first hours but it sharply recovered in the afternoon as investors betted on the company's strong fundamentals.
Grameenphone, also the country's largest mobile phone operator, closed the day at Tk 164.00, or 5.5 per cent higher than the previous day, after opening at Tk 158, which is 2.3 times more than its reference price.
"Rally in stock prices of financials and GP has sent the market into positive territory, especially after the verdict" said Ahmed Rashid, a leading stock broker and a former senior vice president of the DSE.
"However, GP's volume of trade was lower than the previous trading sessions. This is because most of the investors who won shares in the IPO lottery are yet to go for sale on hopes that the price will rise further," said Rashid.
The broader All Shares Price Index (DSI) gained 52.97 points or 1.56 per cent to 3436.36 while DSE-20 Index (DS20) comprising blue chips finished at 2364.55 with a rise of 28.28 points or 1.21 per cent.
Majority of stock prices increased as out of 227 issues traded, 164 went into the positive territory, 61 ended into the negative and two remained unchanged.
The day's volume of transaction remained almost unchanged as it stood at Tk 8.62 billion, an increase of 5.50 per cent over the previous session's Tk 8.17 billion.
Social Investment Bank Ltd (SIBL) topped the turnover list, dislodging GP that ruled trading for three consecutive days after its debut.
Shares of SIBL worth Tk 389.84 million changed hands, followed by AB Bank Tk 359.25 million, Titas Gas Tk 276.57 million, GP Tk 256.33 million, Beximco Tk 244.07 million and Premier Bank Tk 221.82 million.
The banking issues continued to climb up following an array of good third quarter results. The sector, considered the bellwether of the market, advanced 2.04 per cent.
Most of the non-banking financial institutions (NBFIs), mutual funds, pharmaceuticals and energy issues nudged higher.
Cement sector was the big losers on profit taking by investors.
All general insurance companies, except one, edged higher while life insurance companies ended the session mixed. All Beximco subsidiaries except Shinepukur advanced.
Saiham Textile was the largest gainer, posting a rise of 17.17 per cent as the company's share trading resumed after a single day suspension due to book-closure.
Other leading gainers were Prime Textile, Savar Refractories, First Lease International, All Textile, Islamic Finance and Midas Finance.
Zeal Bangla, Gemini Sea Food, CMC Kamal, Metro Spinning, Mithun Knitting, Samorita Hospital, Tallu Spinning and Jamuna Oil were the major losers.
The investors snapped up Grameenphone and banking shares in a hectic afternoon trading when news came that the country's highest court rejected the appeals of the ex-army officers, paving the way for their execution within months.
The DSE general index (DGEN) shot up 66.96 points or 1.64 per cent to end at 4144.74 as most of the banks gained and the country's largest mobile phone operator rose nearly six per cent.
"With this verdict, the investors have heaved a sigh of relief. The judgment has removed a long-standing irritation in our national polity, resulting in a bullish mood among investors," stock expert Yawar Sayeed said.
The GP shares, which made debut on Monday, dragged the market down in the first hours but it sharply recovered in the afternoon as investors betted on the company's strong fundamentals.
Grameenphone, also the country's largest mobile phone operator, closed the day at Tk 164.00, or 5.5 per cent higher than the previous day, after opening at Tk 158, which is 2.3 times more than its reference price.
"Rally in stock prices of financials and GP has sent the market into positive territory, especially after the verdict" said Ahmed Rashid, a leading stock broker and a former senior vice president of the DSE.
"However, GP's volume of trade was lower than the previous trading sessions. This is because most of the investors who won shares in the IPO lottery are yet to go for sale on hopes that the price will rise further," said Rashid.
The broader All Shares Price Index (DSI) gained 52.97 points or 1.56 per cent to 3436.36 while DSE-20 Index (DS20) comprising blue chips finished at 2364.55 with a rise of 28.28 points or 1.21 per cent.
Majority of stock prices increased as out of 227 issues traded, 164 went into the positive territory, 61 ended into the negative and two remained unchanged.
The day's volume of transaction remained almost unchanged as it stood at Tk 8.62 billion, an increase of 5.50 per cent over the previous session's Tk 8.17 billion.
Social Investment Bank Ltd (SIBL) topped the turnover list, dislodging GP that ruled trading for three consecutive days after its debut.
Shares of SIBL worth Tk 389.84 million changed hands, followed by AB Bank Tk 359.25 million, Titas Gas Tk 276.57 million, GP Tk 256.33 million, Beximco Tk 244.07 million and Premier Bank Tk 221.82 million.
The banking issues continued to climb up following an array of good third quarter results. The sector, considered the bellwether of the market, advanced 2.04 per cent.
Most of the non-banking financial institutions (NBFIs), mutual funds, pharmaceuticals and energy issues nudged higher.
Cement sector was the big losers on profit taking by investors.
All general insurance companies, except one, edged higher while life insurance companies ended the session mixed. All Beximco subsidiaries except Shinepukur advanced.
Saiham Textile was the largest gainer, posting a rise of 17.17 per cent as the company's share trading resumed after a single day suspension due to book-closure.
Other leading gainers were Prime Textile, Savar Refractories, First Lease International, All Textile, Islamic Finance and Midas Finance.
Zeal Bangla, Gemini Sea Food, CMC Kamal, Metro Spinning, Mithun Knitting, Samorita Hospital, Tallu Spinning and Jamuna Oil were the major losers.
18 Nov 2009
BB cuts bank service charges
Bangladesh Bank has once again lowered different banking charges, fees and commissions to provide assistance to businessmen hurt by falling exports.
The central bank yesterday sent a letter to all commercial banks on the new decision.
The highest rate of tri-monthly commission for opening deferred L/Cs may be fixed at 0.50 percent of the total amount, down from 0.60 percent now.
The L/C confirmation charge has been fixed at a maximum of 0.20 percent from the existing 0.25 percent. L/C advising, amendment and transfer charges have been reset at a maximum of Tk 750 from the current charge of Tk 1,000.
Charges for data fax, handling, copy document endorsement have been cancelled, the central bank said in the circular.
Commissions on export bill negotiation and export bill collection may be set at a maximum of 0.15 percent. Earlier, the banks had fixed these charges independently.
When the banks give loans to any customer in foreign currency from the export development fund, the rate of interest will be fixed in line with LIBOR (London Inter-bank Offer Rate) plus 1 percent.
Exporters will not have to pay overdue interests in case of site payments for irrevocable L/C. Site payment means importers will pay the bank on receipt of export documents.
In the backdrop of falling exports, the government is going to provide different types of incentive to the exporters, said a Bangladesh Bank official. The government has already prepared a package.
The finance minister is likely to announce the package after returning from Turkey and the UAE. These steps have been taken in the banking sector as part of the measure.
Investment is also experiencing a sluggish trend. The cut in service charges is part of a measure to boost investment.
Earlier in September last year, the central bank cut service charges, commissions and fees. Earlier this year, the BB has asked Bangladesh Association of Banks and Association of Bankers Bangladesh to review the charges, fees and commissions.
The Federation of Bangladesh Chambers of Commerce and Industry sent a proposal to the BB four months ago to cut banks' charges, fees and commissions.
Welcoming the BB decision, Helal Ahmed Chowdhury, managing director of Pubali Bank, said cutting charges and commissions is a continuous process.
“We have reduced it at least twice in the past one a half year,” Chowdhury said.
The central bank yesterday sent a letter to all commercial banks on the new decision.
The highest rate of tri-monthly commission for opening deferred L/Cs may be fixed at 0.50 percent of the total amount, down from 0.60 percent now.
The L/C confirmation charge has been fixed at a maximum of 0.20 percent from the existing 0.25 percent. L/C advising, amendment and transfer charges have been reset at a maximum of Tk 750 from the current charge of Tk 1,000.
Charges for data fax, handling, copy document endorsement have been cancelled, the central bank said in the circular.
Commissions on export bill negotiation and export bill collection may be set at a maximum of 0.15 percent. Earlier, the banks had fixed these charges independently.
When the banks give loans to any customer in foreign currency from the export development fund, the rate of interest will be fixed in line with LIBOR (London Inter-bank Offer Rate) plus 1 percent.
Exporters will not have to pay overdue interests in case of site payments for irrevocable L/C. Site payment means importers will pay the bank on receipt of export documents.
In the backdrop of falling exports, the government is going to provide different types of incentive to the exporters, said a Bangladesh Bank official. The government has already prepared a package.
The finance minister is likely to announce the package after returning from Turkey and the UAE. These steps have been taken in the banking sector as part of the measure.
Investment is also experiencing a sluggish trend. The cut in service charges is part of a measure to boost investment.
Earlier in September last year, the central bank cut service charges, commissions and fees. Earlier this year, the BB has asked Bangladesh Association of Banks and Association of Bankers Bangladesh to review the charges, fees and commissions.
The Federation of Bangladesh Chambers of Commerce and Industry sent a proposal to the BB four months ago to cut banks' charges, fees and commissions.
Welcoming the BB decision, Helal Ahmed Chowdhury, managing director of Pubali Bank, said cutting charges and commissions is a continuous process.
“We have reduced it at least twice in the past one a half year,” Chowdhury said.
GP pulls down DSE index
The benchmark index of the Dhaka Stock Exchange (DSE) saw a five-month biggest decline Wednesday, led by heavyweight Grameenphone (GP) shares that fell 7.53 per cent.
The market started with negative activity as it slid steeply, losing 30 points in the first twenty minutes. However, it recovered five points in the next ten minutes before falling steadily until close of the trade.
The benchmark DSE General Index (DGEN) tumbled 72.04 points or 1.73 per cent to close at 4077.77, its single-day sharpest fall since July 5 this year when it lost 103 points.
Gain in banking issues failed to prevent the DGEN from falling as most of the sectors also edged lower.
The broader All Shares Price Index (DSI) lost 54.66 points or 1.58 per cent to close at 3383.38 while DSE-20 Index (DS20) comprising blue chips finished at 2336.27 with a fractional gain of 0.88 points or 0.03 per cent.
Erosion in share price of GP, the market's largest contributor to market capitalisation, pulled the market down throughout the session, according to stockbrokers.
GP shares were traded at the lowest values since the beginning of its trade in DSE Monday last. However, its volume of trade was the highest for the day.
Stock prices of the GP closed at Tk 158.20, down 7.53 per cent from the previous day's close at Tk 171.10. However, its highest and lowest trading prices were Tk 170.20 and Tk 158.00 respectively.
The market was skewed towards losers as out of 235 issues traded, 89 went into the negative territory, 145 ended into the positive and one remained unchanged.
The total turnover suffered as it stood at Tk 8.17 billion, down 11 per cent from the previous session's Tk 9.14 billion.
GP continued to retain the top position in the turnover list since its debut three days back with shares worth Tk 440.33 million changing hands.
It was followed by Titas Gas, Summit Alliance Port, Social Investment Bank, Jamuna Oil, AB Bank, Beximco, Padma Oil, Bextex and National Bank Limited.
The market started with negative activity as it slid steeply, losing 30 points in the first twenty minutes. However, it recovered five points in the next ten minutes before falling steadily until close of the trade.
The benchmark DSE General Index (DGEN) tumbled 72.04 points or 1.73 per cent to close at 4077.77, its single-day sharpest fall since July 5 this year when it lost 103 points.
Gain in banking issues failed to prevent the DGEN from falling as most of the sectors also edged lower.
The broader All Shares Price Index (DSI) lost 54.66 points or 1.58 per cent to close at 3383.38 while DSE-20 Index (DS20) comprising blue chips finished at 2336.27 with a fractional gain of 0.88 points or 0.03 per cent.
Erosion in share price of GP, the market's largest contributor to market capitalisation, pulled the market down throughout the session, according to stockbrokers.
GP shares were traded at the lowest values since the beginning of its trade in DSE Monday last. However, its volume of trade was the highest for the day.
Stock prices of the GP closed at Tk 158.20, down 7.53 per cent from the previous day's close at Tk 171.10. However, its highest and lowest trading prices were Tk 170.20 and Tk 158.00 respectively.
The market was skewed towards losers as out of 235 issues traded, 89 went into the negative territory, 145 ended into the positive and one remained unchanged.
The total turnover suffered as it stood at Tk 8.17 billion, down 11 per cent from the previous session's Tk 9.14 billion.
GP continued to retain the top position in the turnover list since its debut three days back with shares worth Tk 440.33 million changing hands.
It was followed by Titas Gas, Summit Alliance Port, Social Investment Bank, Jamuna Oil, AB Bank, Beximco, Padma Oil, Bextex and National Bank Limited.
AZADIPRIN
The Board of Directors has recommended cash dividend @ 15% for the year 2008-2009. Date of AGM: 26.12.09. Time: 11:30 AM, Venue: Azadi Conference Hall, 09, CDA Commercial Area, Momin Road, Chittagong. Book Closure: 03.12.09 to
17 Nov 2009
Dhaka stocks finish almost flat as GP depreciates
Dhaka stocks finished nearly flat yesterday, led by price depreciation in Grameenphone shares on the second day of its trade.
Although 75 percent of issues or 175 securities traded up, the benchmark index of the premier bourse closed up only 1.7 points, or 0.04 percent.
“The market showed resilience against a fall in share prices of Grameenphone,” BRAC-EPL, an investment firm, said in an analysis.
Grameenphone, the leading mobile phone operator, made its trading debut on Monday as the largest issue in the history of Bangladesh capital market.
At the end of yesterday's trading session, Grameenphone shares depreciated 3.5 percent. As a sector, it lost more than 88 points.
Starting at Tk 176.10, each Grameenphone share rose as high as Tk 186 before closing at Tk 171.10.
The number of trades went down significantly (less than half) compared to the previous day. The value of trade however was still the highest for the day. A total of 28,32,800 Grameenphone shares worth Tk 49.88 crore traded on the Dhaka Stock Exchange.
Grameenphone joined the stock market with 135 crore ordinary shares of Tk 10 each. However, the offer price was Tk 70 per share, of which Tk 60 was premium. It raised Tk 486 crore through an initial public offering (IPO) and another Tk 486 crore through pre-IPO or private placement.
The market started high by gaining about 65 points within the first 20 minutes of trade. But the market lost momentum on profit-taking and a price fall in Grameenphone. It continued the losing trend for the rest of the session.
The total turnover however increased heavily yesterday, as investors are moving away from the 'wait-and-watch' approach. It increased by 24 percent to Tk 913.81 crore.
A total of 3,13,27,780 shares and mutual fund units traded on the DSE.
The banking sector continued the gaining momentum, as the sector advanced by 1.66 percent. All non-bank financial institutions also rose, with a number of companies gaining more than 5 percent.
Although 75 percent of issues or 175 securities traded up, the benchmark index of the premier bourse closed up only 1.7 points, or 0.04 percent.
“The market showed resilience against a fall in share prices of Grameenphone,” BRAC-EPL, an investment firm, said in an analysis.
Grameenphone, the leading mobile phone operator, made its trading debut on Monday as the largest issue in the history of Bangladesh capital market.
At the end of yesterday's trading session, Grameenphone shares depreciated 3.5 percent. As a sector, it lost more than 88 points.
Starting at Tk 176.10, each Grameenphone share rose as high as Tk 186 before closing at Tk 171.10.
The number of trades went down significantly (less than half) compared to the previous day. The value of trade however was still the highest for the day. A total of 28,32,800 Grameenphone shares worth Tk 49.88 crore traded on the Dhaka Stock Exchange.
Grameenphone joined the stock market with 135 crore ordinary shares of Tk 10 each. However, the offer price was Tk 70 per share, of which Tk 60 was premium. It raised Tk 486 crore through an initial public offering (IPO) and another Tk 486 crore through pre-IPO or private placement.
The market started high by gaining about 65 points within the first 20 minutes of trade. But the market lost momentum on profit-taking and a price fall in Grameenphone. It continued the losing trend for the rest of the session.
The total turnover however increased heavily yesterday, as investors are moving away from the 'wait-and-watch' approach. It increased by 24 percent to Tk 913.81 crore.
A total of 3,13,27,780 shares and mutual fund units traded on the DSE.
The banking sector continued the gaining momentum, as the sector advanced by 1.66 percent. All non-bank financial institutions also rose, with a number of companies gaining more than 5 percent.
Footwear exporters see silver lining
Leather footwear exports are expected to turn around in two months as the shocks of recession are easing in parts of the world.
Exporters are trying to increase product quality and make prompt delivery to get more work orders from abroad. Simultaneously, they have moved to diversify products to attract new buyers, said industry leaders yesterday.
Local leather footwear and bag exports slowed in July-September, mainly due to the delayed effects of the global financial meltdown.
In the July-September period of 2009, leather footwear exports stood at $56.22 million, which was a 3 percent decline from last year's figures, according to Export Promotion Bureau (EPB) data.
Leather bag and purse exports have also slowed with sold products worth $4 million during the period, a rise of 5.56 percent from a year ago, although they failed to reach the export target set by the government.
But growth in exports of leather bags and purses was more than 90 percent in the April-June period.
Industry insiders said the global financial meltdown has had a delayed effect on demand for finished leather and leather goods that caused a decline in exports.
But the decline will not continue for long, as developed markets demand low-cost footwear, bags and purses, industry leaders said.
Syed Nasim Manzur, managing director of Apex-Adelchi Footwear Ltd, said footwear exports declined as a result of global recession that affected consumer expenditure on fashion accessories, like footwear and bags.
“Export earnings were satisfactory even three months back, but it dropped in September, mainly because of the delayed effects of global recession on demand for luxury fashion accessories," he said.
“Another reason for the decline in exports is the seasonality factor. We take orders twice a year and produce different products in different seasons -- for example, sandals for spring and boots for winter."
“Every time we go for new orders, we have to change the entire factory set-up that slows local production initially," Manzur explained. "But we are trying to smooth the transition further."
He also said the situation will get better in coming months. "There is demand for our products on international markets, as we produce high quality products and many countries such as Italy have stopped producing high quality shoes."
The market size of Bangladeshi-made leather footwear stands at around Tk 1,700 crore, of which about 45 percent is exported. The country exports around six million pairs of leather footwear a year.
Apex-Adelchi Footwear Ltd is the country's leading footwear exporter, claiming more than half of total exports. The company earned Tk 450 crore last year.
Exports of leather bags and purses have also slowed mainly due to lower work order flow during this period. Earlier, the bag exports have risen by more than 90 percent from September 2008.
“We still have a little growth in exports of items like bag and purse, but the flow of work orders have slowed by 50 percent in recent months. Our present growth figures are resultant of the orders we received at least 8-10 months back,” said Ashikur Rahman, managing director of Rahman Leather Bangladesh, a Hazaribagh based leather bag exporter.
"The main reason behind the slower growth is the lack of consistent work orders. Yet we don't have old and loyal customers abroad, as we are quite new in exporting bags in a large scale," he said adding, "We still get orders from newer and irregular buyers."
The annual market size for leather bags and purses stands around Tk 100 crore.
Meanwhile, Rezaul Karim Ansari, chairman of Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association, demanded government support to enhance export performance.
Exporters are trying to increase product quality and make prompt delivery to get more work orders from abroad. Simultaneously, they have moved to diversify products to attract new buyers, said industry leaders yesterday.
Local leather footwear and bag exports slowed in July-September, mainly due to the delayed effects of the global financial meltdown.
In the July-September period of 2009, leather footwear exports stood at $56.22 million, which was a 3 percent decline from last year's figures, according to Export Promotion Bureau (EPB) data.
Leather bag and purse exports have also slowed with sold products worth $4 million during the period, a rise of 5.56 percent from a year ago, although they failed to reach the export target set by the government.
But growth in exports of leather bags and purses was more than 90 percent in the April-June period.
Industry insiders said the global financial meltdown has had a delayed effect on demand for finished leather and leather goods that caused a decline in exports.
But the decline will not continue for long, as developed markets demand low-cost footwear, bags and purses, industry leaders said.
Syed Nasim Manzur, managing director of Apex-Adelchi Footwear Ltd, said footwear exports declined as a result of global recession that affected consumer expenditure on fashion accessories, like footwear and bags.
“Export earnings were satisfactory even three months back, but it dropped in September, mainly because of the delayed effects of global recession on demand for luxury fashion accessories," he said.
“Another reason for the decline in exports is the seasonality factor. We take orders twice a year and produce different products in different seasons -- for example, sandals for spring and boots for winter."
“Every time we go for new orders, we have to change the entire factory set-up that slows local production initially," Manzur explained. "But we are trying to smooth the transition further."
He also said the situation will get better in coming months. "There is demand for our products on international markets, as we produce high quality products and many countries such as Italy have stopped producing high quality shoes."
The market size of Bangladeshi-made leather footwear stands at around Tk 1,700 crore, of which about 45 percent is exported. The country exports around six million pairs of leather footwear a year.
Apex-Adelchi Footwear Ltd is the country's leading footwear exporter, claiming more than half of total exports. The company earned Tk 450 crore last year.
Exports of leather bags and purses have also slowed mainly due to lower work order flow during this period. Earlier, the bag exports have risen by more than 90 percent from September 2008.
“We still have a little growth in exports of items like bag and purse, but the flow of work orders have slowed by 50 percent in recent months. Our present growth figures are resultant of the orders we received at least 8-10 months back,” said Ashikur Rahman, managing director of Rahman Leather Bangladesh, a Hazaribagh based leather bag exporter.
"The main reason behind the slower growth is the lack of consistent work orders. Yet we don't have old and loyal customers abroad, as we are quite new in exporting bags in a large scale," he said adding, "We still get orders from newer and irregular buyers."
The annual market size for leather bags and purses stands around Tk 100 crore.
Meanwhile, Rezaul Karim Ansari, chairman of Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association, demanded government support to enhance export performance.
OCL to be listed with CSE under book building method
Ocean Containers Limited (OCL), a local enterprise engaged in container business, is going to be listed with the Chittagong Stock Exchange (CSE) under book building method.
This the first time a company will be listed under book building method and it will also be directly listed with the bourse, said its upbeat chairman Muhammad Aziz Khan, also the chairman of Summit Group.
He said it is expected that the listing process to be completed by early December.
The company will offer 5.355 million shares for the general investors and 1.19 million shares for institutional investors, he said.
"We expect that the investors will pay at least Tk 126.58 per share as the company is performing very well," he added.
The face value of per share has been determined at Tk 10 and the company will be allowed to offload 11.9 million shares.
The company received 'A plus' rating for long term and 'ST-2' for short term with its business of inland container depot and container freight station.
Mr Aziz claimed that OCL is the largest off-dock in the country handling 20 per cent of total export volume.
"It handled 61,961 twenty-feet equivalent containers in 2008 and 45,468 TEUs up to September this year," he said.
It earned Tk 109 million net profit in the last year and its net asset value is Tk 1.232 billion.
The OCL chairman said containarised trade will continue to grow as this is the more efficient trend in transportation of goods worldwide.
The company arranged a road show on Monday to demonstrate the performance of the company in front of the investors.
Deputy managing director of OCL Yasser Rizvi in a presentation said the company handled about 300 containers per day.
"It has a long-term contract with Maersk Logistics, which handles 35 per cent to 40 per cent of Bangladesh's total export volume," he said.
It is the first company to have the ISO certification for inland container depot and container freight station services, he added.
A large number of investors, officials from Dhaka and Chittagong exchanges were present at the road show.
This the first time a company will be listed under book building method and it will also be directly listed with the bourse, said its upbeat chairman Muhammad Aziz Khan, also the chairman of Summit Group.
He said it is expected that the listing process to be completed by early December.
The company will offer 5.355 million shares for the general investors and 1.19 million shares for institutional investors, he said.
"We expect that the investors will pay at least Tk 126.58 per share as the company is performing very well," he added.
The face value of per share has been determined at Tk 10 and the company will be allowed to offload 11.9 million shares.
The company received 'A plus' rating for long term and 'ST-2' for short term with its business of inland container depot and container freight station.
Mr Aziz claimed that OCL is the largest off-dock in the country handling 20 per cent of total export volume.
"It handled 61,961 twenty-feet equivalent containers in 2008 and 45,468 TEUs up to September this year," he said.
It earned Tk 109 million net profit in the last year and its net asset value is Tk 1.232 billion.
The OCL chairman said containarised trade will continue to grow as this is the more efficient trend in transportation of goods worldwide.
The company arranged a road show on Monday to demonstrate the performance of the company in front of the investors.
Deputy managing director of OCL Yasser Rizvi in a presentation said the company handled about 300 containers per day.
"It has a long-term contract with Maersk Logistics, which handles 35 per cent to 40 per cent of Bangladesh's total export volume," he said.
It is the first company to have the ISO certification for inland container depot and container freight station services, he added.
A large number of investors, officials from Dhaka and Chittagong exchanges were present at the road show.
EBL gives forex loans to Biman
An amount of Tk 40 crore will be saved from the purchase of aircraft for Biman Bangladesh Airlines, the national flag carrier, as it has moved to borrow funds in foreign currencies from a local bank, a monopoly that foreign banks had enjoyed previously.
Eastern Bank Limited (EBL) has recently won a bidding to finance Biman $117 million, beating Citibank, a foreign bank.
“Some Tk 40 crore ($7 million) will be saved from the deal with EBL instead of a foreign bank,” Muhammad Zakirul Islam, Biman's managing director told The Daily Star yesterday. Islam also found it much easier to deal with a local bank.
Both bank and Biman officials said savings would come from the lower interest rates and 'no price' for the country risk offered by the local bank.
“When a foreign bank lends in foreign currency it puts 2-3 percent of the loan for pricing country risk, which is not applicable for us,” said Mohammad Abdul Wadud, head of structured finance unit of EBL.
Interest rates for the loan will be LIBOR (London Inter-bank Offered Rate) plus 4 percent, Wadud said. “So the aggregate rate will be around 4.5 percent,” he added.
The central bank's recent lifting of restrictions on offshore banking or foreign currency loans for local banks has drawn a curtain on the monopoly foreign banks enjoyed earlier in case of such banking outside the country's export processing zones (EPZ). Merely foreign firms in the EPZ were entitled to forex loans before the central bank removes such a limitation.
“A Bangladeshi bank has made this type of deal for the first time in history. Earlier, it was done solely by foreign banks,” Ali Reza Iftekher, managing director and chief executive officer of EBL told The Daily Star.
Giving all credit to Bangladesh Bank, he said: “It has helped a lot. It has agreed to use its foreign exchange reserve for national interests.”
EBL will borrow foreign currency from Bangladesh Bank and lend it to Biman. The CEO said he is getting lot of interests from all local banks to be a part of the syndication.
Welcoming the deal, K Mahmood Sattar, managing director of The City Bank, said winning this offshore banking scope outside EPZ by a local bank is a very good sign for the banking industry.
Sattar, also the chairman of the Association of Bankers Bangladesh, thanked the BB for its decision.
Currently, there are nearly a dozen of local and foreign banks providing offshore banking services to investors and businessmen in EPZ and all its transactions are in foreign currencies, mainly in US dollar.
Biman operates with a fleet of nine aircraft, including Airbus A310-300, Fokker F28 Mk4000 and McDonnell Douglas DC-10-30. Officials said the loan for purchasing more carriers would strengthen the national flag carrier.
Eastern Bank Limited (EBL) has recently won a bidding to finance Biman $117 million, beating Citibank, a foreign bank.
“Some Tk 40 crore ($7 million) will be saved from the deal with EBL instead of a foreign bank,” Muhammad Zakirul Islam, Biman's managing director told The Daily Star yesterday. Islam also found it much easier to deal with a local bank.
Both bank and Biman officials said savings would come from the lower interest rates and 'no price' for the country risk offered by the local bank.
“When a foreign bank lends in foreign currency it puts 2-3 percent of the loan for pricing country risk, which is not applicable for us,” said Mohammad Abdul Wadud, head of structured finance unit of EBL.
Interest rates for the loan will be LIBOR (London Inter-bank Offered Rate) plus 4 percent, Wadud said. “So the aggregate rate will be around 4.5 percent,” he added.
The central bank's recent lifting of restrictions on offshore banking or foreign currency loans for local banks has drawn a curtain on the monopoly foreign banks enjoyed earlier in case of such banking outside the country's export processing zones (EPZ). Merely foreign firms in the EPZ were entitled to forex loans before the central bank removes such a limitation.
“A Bangladeshi bank has made this type of deal for the first time in history. Earlier, it was done solely by foreign banks,” Ali Reza Iftekher, managing director and chief executive officer of EBL told The Daily Star.
Giving all credit to Bangladesh Bank, he said: “It has helped a lot. It has agreed to use its foreign exchange reserve for national interests.”
EBL will borrow foreign currency from Bangladesh Bank and lend it to Biman. The CEO said he is getting lot of interests from all local banks to be a part of the syndication.
Welcoming the deal, K Mahmood Sattar, managing director of The City Bank, said winning this offshore banking scope outside EPZ by a local bank is a very good sign for the banking industry.
Sattar, also the chairman of the Association of Bankers Bangladesh, thanked the BB for its decision.
Currently, there are nearly a dozen of local and foreign banks providing offshore banking services to investors and businessmen in EPZ and all its transactions are in foreign currencies, mainly in US dollar.
Biman operates with a fleet of nine aircraft, including Airbus A310-300, Fokker F28 Mk4000 and McDonnell Douglas DC-10-30. Officials said the loan for purchasing more carriers would strengthen the national flag carrier.
GP makes history but downside remains
As expected, it was more of a 'mar mar cut cut' situation on the debut trading of the Grameenphone (GP) shares on the bourses last Monday.
Most investors, both seasoned and new-entrants, remained glued to computer monitors at home, offices and brokerage houses, watching price movements of the issue that has made history, in terms of its size, investors' response and the single-day boost to the benchmark DGEN.
On the first day of its trading, GP, which mopped up from the market Tk. 4.9 billion through IPO last month and an equivalent amount through per-placement several months back, posted a rise of 1673 per cent to close at Tk 177.30 from its IPO price of Tk 70, including a premium of Tk 60, a share.
Some market experts have described the developments centering the GP issue a good omen for the country's capital market, saying that both sellers and buyers have displayed 'maturity' on their part on the first two days of trading. One expert, who is quoted frequently in the media, has even termed the ruling market price of the GP issue as 'fair for such a large company'.
The euphoria over the GP issue among the investors has been partly because of its size and the very image of the company and partly due to the comments made, from time to time, by top bosses of the relevant organizations and, to some extent, excessive media attention.
The fact remains that high market price of its shares does not mean anything, in terms of financial gains, to a listed company. However, theoretically, the rise and fall in demand is dependent on the performance and dividend payment of the company concerned. An enlightened management does always value the investors' perception about a listed company.
Whether the ruling market price of GP is ' fair' or not only future will decide. What should be important for a long-term investor is the return he or she would be getting from the company on his or her investment at the end of the year in the form dividend. The size of the issue will be pretty important here.
However, investors who are more interested in market gains bother least about dividend income. These days, long-term investors who are choosy and are unwilling to put in their money on stocks of companies with weak fundamentals are rarely seen in the market. For they find the prices of the stocks having strong fundamentals, in most cases, well beyond a rational level.
Apparently, the bourses are not that interested in this type of investors. What they aspire to see is an ever-growing market abuzz with investors making frequent transactions. It matters little to them whether they are fly-by-night investors or not.
Despite the fact that the developments at the share market are no way relevant to the goings-on in other major areas of the economy, most people would heartily welcome the robust growth of the market. There are, however, a few downsides that the management of the bourses would like to downplay. But the Securities and Exchange Commission (SEC) cannot ignore a few unpalatable developments associated with the current growth of the market. For in the event of a debacle, everybody would point finger at the Commission.
There is no denying that all the stakeholders do need to work in unison for the healthy growth of the capital market. But, at times, there surfaces a conflict of interests. For instance, the SEC is mandated to take tough measures for protecting the interest of the investors. But other stakeholders may not like the SEC actions. So, if such stakeholders are allowed to have a finger in every pie, the Commission might find hard to take a tough stand when it is needed most. So, the SEC needs to maintain its independent status and go for what is necessary for a stable growth of the market.
While doing so, the securities regulator should not be at all disturbed by street demonstrations by a handful of so-called investors. Such demonstrations are stage-managed and general investors are no way involved in the same.
As a first step towards straightening up things, the SEC should look into the existence of a large number of fake Beneficiary Owner (BO) accounts. The main reason for investors making long queues for IPO subscription and subsequent high price of new shares is the presence of fake BO accounts. Allegation have it a substantial part of the estimated 2.2 million BO accounts is fake. In the event of detection of such accounts and their cancellation would help remove a few distortions in the market.
There are reasons to be elated by the fact that the market has well absorbed a large issue like the GP. But the market needs some more large issues to dilute the investors' attention to some selected shares. In addition, the SEC should advice the investors to go through the recently published quarterly financial statements of the listed companies while making their investment decisions. That would serve the purpose behind the SEC asking the companies to publish the statements.
Most investors, both seasoned and new-entrants, remained glued to computer monitors at home, offices and brokerage houses, watching price movements of the issue that has made history, in terms of its size, investors' response and the single-day boost to the benchmark DGEN.
On the first day of its trading, GP, which mopped up from the market Tk. 4.9 billion through IPO last month and an equivalent amount through per-placement several months back, posted a rise of 1673 per cent to close at Tk 177.30 from its IPO price of Tk 70, including a premium of Tk 60, a share.
Some market experts have described the developments centering the GP issue a good omen for the country's capital market, saying that both sellers and buyers have displayed 'maturity' on their part on the first two days of trading. One expert, who is quoted frequently in the media, has even termed the ruling market price of the GP issue as 'fair for such a large company'.
The euphoria over the GP issue among the investors has been partly because of its size and the very image of the company and partly due to the comments made, from time to time, by top bosses of the relevant organizations and, to some extent, excessive media attention.
The fact remains that high market price of its shares does not mean anything, in terms of financial gains, to a listed company. However, theoretically, the rise and fall in demand is dependent on the performance and dividend payment of the company concerned. An enlightened management does always value the investors' perception about a listed company.
Whether the ruling market price of GP is ' fair' or not only future will decide. What should be important for a long-term investor is the return he or she would be getting from the company on his or her investment at the end of the year in the form dividend. The size of the issue will be pretty important here.
However, investors who are more interested in market gains bother least about dividend income. These days, long-term investors who are choosy and are unwilling to put in their money on stocks of companies with weak fundamentals are rarely seen in the market. For they find the prices of the stocks having strong fundamentals, in most cases, well beyond a rational level.
Apparently, the bourses are not that interested in this type of investors. What they aspire to see is an ever-growing market abuzz with investors making frequent transactions. It matters little to them whether they are fly-by-night investors or not.
Despite the fact that the developments at the share market are no way relevant to the goings-on in other major areas of the economy, most people would heartily welcome the robust growth of the market. There are, however, a few downsides that the management of the bourses would like to downplay. But the Securities and Exchange Commission (SEC) cannot ignore a few unpalatable developments associated with the current growth of the market. For in the event of a debacle, everybody would point finger at the Commission.
There is no denying that all the stakeholders do need to work in unison for the healthy growth of the capital market. But, at times, there surfaces a conflict of interests. For instance, the SEC is mandated to take tough measures for protecting the interest of the investors. But other stakeholders may not like the SEC actions. So, if such stakeholders are allowed to have a finger in every pie, the Commission might find hard to take a tough stand when it is needed most. So, the SEC needs to maintain its independent status and go for what is necessary for a stable growth of the market.
While doing so, the securities regulator should not be at all disturbed by street demonstrations by a handful of so-called investors. Such demonstrations are stage-managed and general investors are no way involved in the same.
As a first step towards straightening up things, the SEC should look into the existence of a large number of fake Beneficiary Owner (BO) accounts. The main reason for investors making long queues for IPO subscription and subsequent high price of new shares is the presence of fake BO accounts. Allegation have it a substantial part of the estimated 2.2 million BO accounts is fake. In the event of detection of such accounts and their cancellation would help remove a few distortions in the market.
There are reasons to be elated by the fact that the market has well absorbed a large issue like the GP. But the market needs some more large issues to dilute the investors' attention to some selected shares. In addition, the SEC should advice the investors to go through the recently published quarterly financial statements of the listed companies while making their investment decisions. That would serve the purpose behind the SEC asking the companies to publish the statements.
16 Nov 2009
Cement makers look to brighter days
Local cement makers see bright prospects for the days to come as the government plans to embark on some big civil engineering projects in Bangladesh, including the Padma Bridge.
Some local companies are enhancing their production capacity, as domestic demand has consistently been on the rise for the past few years, except for 2007, along with increasing government initiatives, sector people said.
The government plans to complete construction of the 6.15-kilometre long Padma Bridge, which will be the largest civil engineering project of Bangladesh, and Dhaka-Chittagong express highway in its tenure.
The government's plans to set up several flyovers in Dhaka under the strategic transport plan and build 142 bridges across the country are expected to bring vibrancy to the cement sector.
"As local companies have improved a great deal in the last few years, construction firms are now collecting cement from local sources for big public projects," said Gopal Krishna Bagchi, a researcher and development official of Shun Sing Group, which manufactures the Seven Rings brand cement.
The sector people said local cement was used in a few recent public construction projects, including the Bhairab Bridge, and the Sixth Bangladesh-China Friendship Bridge (Mukterpur Bridge) in Munshiganj.
But local cement makers were not in the same condition 10 years ago.
During the construction of Bangabandhu Bridge on the Jamuna river, the constructing firm -- Hyundai Engineering and Construction Co Ltd -- had to set up a cement factory of its own to ensure cement supply to the mega project.
The local cement sector has since come a long way, meeting domestic demand and exporting to neighbouring countries.
Presently there are 30 operational cement companies that can produce around 20 million tonnes of cement a year against a demand for 8.5 million tonnes.
"Assuming high domestic demand in future, we are expanding our production capacity to meet requirements " said Bagchi.
An official of Holcim (Bangladesh) Ltd said the company was also expanding its production capacity by 0.6 million tonnes due to consistent consumption and export growth.
"Cement consumption in Bangladesh is expected to witness growth of 13 percent in 2009, rising from 8 percent last year," said Shankar Kumar Roy, general manager (Business Development) of Holcim.
Mostafa Kamal, president of Bangladesh Cement Manufacturing Association, said though cement consumption is growing, local manufacturers have to keep a large portion of their factories idle, as "local factories will be able to produce in full swing when those public construction works begin".
Kamal urged the government to give local cement manufacturers the same facilities as for the foreign companies for supplying cement to the public projects.
During construction of Bangabandhu Bridge, the government offered duty free facilities to the constructing firm to import machinery and raw materials for cement.
"All cement companies might not be able to supply cement to big public projects for not having large production and supply capacities," Bagchi said.
Bangladesh exports around 12,000-14,000 tonnes of cement a month, mainly to India.
Some local companies are enhancing their production capacity, as domestic demand has consistently been on the rise for the past few years, except for 2007, along with increasing government initiatives, sector people said.
The government plans to complete construction of the 6.15-kilometre long Padma Bridge, which will be the largest civil engineering project of Bangladesh, and Dhaka-Chittagong express highway in its tenure.
The government's plans to set up several flyovers in Dhaka under the strategic transport plan and build 142 bridges across the country are expected to bring vibrancy to the cement sector.
"As local companies have improved a great deal in the last few years, construction firms are now collecting cement from local sources for big public projects," said Gopal Krishna Bagchi, a researcher and development official of Shun Sing Group, which manufactures the Seven Rings brand cement.
The sector people said local cement was used in a few recent public construction projects, including the Bhairab Bridge, and the Sixth Bangladesh-China Friendship Bridge (Mukterpur Bridge) in Munshiganj.
But local cement makers were not in the same condition 10 years ago.
During the construction of Bangabandhu Bridge on the Jamuna river, the constructing firm -- Hyundai Engineering and Construction Co Ltd -- had to set up a cement factory of its own to ensure cement supply to the mega project.
The local cement sector has since come a long way, meeting domestic demand and exporting to neighbouring countries.
Presently there are 30 operational cement companies that can produce around 20 million tonnes of cement a year against a demand for 8.5 million tonnes.
"Assuming high domestic demand in future, we are expanding our production capacity to meet requirements " said Bagchi.
An official of Holcim (Bangladesh) Ltd said the company was also expanding its production capacity by 0.6 million tonnes due to consistent consumption and export growth.
"Cement consumption in Bangladesh is expected to witness growth of 13 percent in 2009, rising from 8 percent last year," said Shankar Kumar Roy, general manager (Business Development) of Holcim.
Mostafa Kamal, president of Bangladesh Cement Manufacturing Association, said though cement consumption is growing, local manufacturers have to keep a large portion of their factories idle, as "local factories will be able to produce in full swing when those public construction works begin".
Kamal urged the government to give local cement manufacturers the same facilities as for the foreign companies for supplying cement to the public projects.
During construction of Bangabandhu Bridge, the government offered duty free facilities to the constructing firm to import machinery and raw materials for cement.
"All cement companies might not be able to supply cement to big public projects for not having large production and supply capacities," Bagchi said.
Bangladesh exports around 12,000-14,000 tonnes of cement a month, mainly to India.
GP shares debut with 'rational price'
Dhaka, Nov 16 (bdnews24.com)—Grameenphone shares debuted on the country's twin bourses on Monday after a long wait but the prices were not as high as some shareholders had expected them.
Prices of the biggest-ever IPO in Bangladesh's history opened at Tk 160 on the Dhaka Stock Exchange, surged to Tk 195 at one point before ending on Tk 177.30.
Prices of GP shares opened a bit higher on the Chittagong Stock Exchange at Tk 200 but didn't move up any further. It went as low as Tk 162.50 but closed a bit higher at Tk 176.50 with the turnover amounting to Tk 236.861 million.
Meanwhile, the floating caused the prime bourse's key index to cross the 4000 mark to touch a new high.
The DGEN or general index skyrocketed at the opening bell, pushing 720 points up. It closed at 4148.11 points at the end of the day's session, surging 764.87 points or 22.60 percent.
Bourse authorities said the major reason behind the huge hike was GP as it debuted in the market with a huge amount of shares.
A total of 312,501 lots of shares were handed to investors during the IPO with each lot containing 200 shares.
"Out of the day's 764 points, GP accounted for 717 points alone," DSE chief executive Satipati Maitro told the media.
He said the hike was "very much usual" considering the 'circumstances'.
The floating added Tk 23,940 crore to the market capitalisation, added the prime bourse's CEO.
But shareholders were far from impressed.
Khalilur Rahman, who got 600 shares through the IPO, was in the mood to sell some of his holdings on the first day to make quick bucks, but he though better of it.
"I was hoping it would reach at least Tk 300," he told bdnews24.com.
The same happened with many others.
Sharifa Sultana, who works with a private bank, said she was not thinking of selling her 200 shares, for now.
"Everyone was saying that prices would shoot up at least to Tk 400, but it barely reached Tk 200," she told bdnews24.com over phone.
Despite the 'let-down', GP shares worth Tk 1.32 billion changed hands on the DSE, making it the day's turnover leader.
Experts, though, say the market behaved in a matured manner.
"For the first time investors acted sensibly, shareholders did not rush to sell and buyers did not see Tk 200 as a rational price for a GP share," said mutual fund operator Yaweer Sayeed.
"Investment in the true sense happened, this market witnessed trading, not high-stake gambling," he said.
Usually, IPOs are attractive in that they can trade 30 to 40 times the face value on debut.
Sayeed says he finds the price more or less justified given the size of the floating.
"There is no shortage of GP shares, so it may have bashed shareholders' expectations but it [the price] was anticipated," added the top official of asset management firm AIMS of Bangladesh.
Economist Abu Ahmed echoed Sayeed. He said that it was a good sign that the IPO did not follow the usual trend of prices "skyrocketing".
"Quite a number of shareholders are not thinking of just selling it off on the first day as they viewed it as an investment, not a tool to trade," he said.
The huge number of shares in the market also contributed to the price building, added Ahmed, an adviser for market regulator, the Security and Exchange Commission.
Hype for the country's largest mobile-phone operator's floating was at the peak among investors as it attracted subscriptions worth Tk 17.25 billion from over one million prospective investors.
The offer price valued the company at only 3.3 times its 2008 earnings before interest, tax, depreciation and amortisation (EBITDA), which created a buzz among investors.
Norway's telecom giant Telenor owns 62 percent of Grameenphone, launched in 1997, while the local Grameen Telecom owns the rest.
Prices of the biggest-ever IPO in Bangladesh's history opened at Tk 160 on the Dhaka Stock Exchange, surged to Tk 195 at one point before ending on Tk 177.30.
Prices of GP shares opened a bit higher on the Chittagong Stock Exchange at Tk 200 but didn't move up any further. It went as low as Tk 162.50 but closed a bit higher at Tk 176.50 with the turnover amounting to Tk 236.861 million.
Meanwhile, the floating caused the prime bourse's key index to cross the 4000 mark to touch a new high.
The DGEN or general index skyrocketed at the opening bell, pushing 720 points up. It closed at 4148.11 points at the end of the day's session, surging 764.87 points or 22.60 percent.
Bourse authorities said the major reason behind the huge hike was GP as it debuted in the market with a huge amount of shares.
A total of 312,501 lots of shares were handed to investors during the IPO with each lot containing 200 shares.
"Out of the day's 764 points, GP accounted for 717 points alone," DSE chief executive Satipati Maitro told the media.
He said the hike was "very much usual" considering the 'circumstances'.
The floating added Tk 23,940 crore to the market capitalisation, added the prime bourse's CEO.
But shareholders were far from impressed.
Khalilur Rahman, who got 600 shares through the IPO, was in the mood to sell some of his holdings on the first day to make quick bucks, but he though better of it.
"I was hoping it would reach at least Tk 300," he told bdnews24.com.
The same happened with many others.
Sharifa Sultana, who works with a private bank, said she was not thinking of selling her 200 shares, for now.
"Everyone was saying that prices would shoot up at least to Tk 400, but it barely reached Tk 200," she told bdnews24.com over phone.
Despite the 'let-down', GP shares worth Tk 1.32 billion changed hands on the DSE, making it the day's turnover leader.
Experts, though, say the market behaved in a matured manner.
"For the first time investors acted sensibly, shareholders did not rush to sell and buyers did not see Tk 200 as a rational price for a GP share," said mutual fund operator Yaweer Sayeed.
"Investment in the true sense happened, this market witnessed trading, not high-stake gambling," he said.
Usually, IPOs are attractive in that they can trade 30 to 40 times the face value on debut.
Sayeed says he finds the price more or less justified given the size of the floating.
"There is no shortage of GP shares, so it may have bashed shareholders' expectations but it [the price] was anticipated," added the top official of asset management firm AIMS of Bangladesh.
Economist Abu Ahmed echoed Sayeed. He said that it was a good sign that the IPO did not follow the usual trend of prices "skyrocketing".
"Quite a number of shareholders are not thinking of just selling it off on the first day as they viewed it as an investment, not a tool to trade," he said.
The huge number of shares in the market also contributed to the price building, added Ahmed, an adviser for market regulator, the Security and Exchange Commission.
Hype for the country's largest mobile-phone operator's floating was at the peak among investors as it attracted subscriptions worth Tk 17.25 billion from over one million prospective investors.
The offer price valued the company at only 3.3 times its 2008 earnings before interest, tax, depreciation and amortisation (EBITDA), which created a buzz among investors.
Norway's telecom giant Telenor owns 62 percent of Grameenphone, launched in 1997, while the local Grameen Telecom owns the rest.
BATASHOE
he company has declared interim dividend @ 115% (Tk. 11.50 per share of Tk. 10.00 each) for the year 2009 based on company performance from 1st January to 30th June 2009 and retained earnings as at 30.06.09. Record Date for entitlement of interim dividend: 09.12.09.
15 Nov 2009
GP debuts today
Grameenphone (GP) shares trade begins on Dhaka and Chittagong bourses today.
With this trading debut, the leading mobile phone operator is going to be the largest-ever issue in Bangladesh capital market with its Tk 486 crore initial public offerings (IPO), oversubscribed by more than 3.5 times.
The company had raised this Tk 486 crore from public last month by issuing 6.943 crore ordinary shares of Tk 10 each, in addition to Tk 60 as premium per share.
A total of 277,757 lots of shares were allocated to local investors through lottery, while 34,720 lots went to non-resident Bangladeshis and 24 to mutual funds.
Earlier, the company also raised another Tk 486 crore through pre-IPO or private placement.
According to GP, it will use the proceeds from the issue to expand its network and develop information technology and for corporate purposes.
Norway's telecom giant Telenor owns GP's 62 percent stakes, while the rest is owned by local Grameen Telecom.
GP is the most profitable mobile phone operator in the country, with its revenue expecting to hit billion dollars mark by the year-end.
With this trading debut, the leading mobile phone operator is going to be the largest-ever issue in Bangladesh capital market with its Tk 486 crore initial public offerings (IPO), oversubscribed by more than 3.5 times.
The company had raised this Tk 486 crore from public last month by issuing 6.943 crore ordinary shares of Tk 10 each, in addition to Tk 60 as premium per share.
A total of 277,757 lots of shares were allocated to local investors through lottery, while 34,720 lots went to non-resident Bangladeshis and 24 to mutual funds.
Earlier, the company also raised another Tk 486 crore through pre-IPO or private placement.
According to GP, it will use the proceeds from the issue to expand its network and develop information technology and for corporate purposes.
Norway's telecom giant Telenor owns GP's 62 percent stakes, while the rest is owned by local Grameen Telecom.
GP is the most profitable mobile phone operator in the country, with its revenue expecting to hit billion dollars mark by the year-end.
A number of insurers counting penalty for not floating IPO
A number of insurance companies are counting significant amount of financial penalty every year for having failed to float IPO.
Officials of the Chief Controller of Insurance (CCI) said more than a dozen insurers are yet to float initial public offerings (IPOs).
Most of these companies have already applied to the Securities and Exchange Commission (SEC) for permission to float IPO, they mentioned.
Some of those have reportedly failed to comply with the IPO floatation guidelines while dilly-dally of the SEC is also responsible for the delay in floating IPO by some other companies, the officials added.
According to rule each of the non-listed insurance companies requires to pay Tk 1,000 as fine per day for missing their respective IPO floatation deadlines.
Normally, the CCI realises such financial penalty at the time of renewing their operating licences, especially at the end November every year.
"No insurance company can obtain any new policy without the renewal of their operating licences," said a CCI official.
The official also informed the FE that the CCI had realised about Tk 47.40 million in fine from the errant insurers till November 31, 2008.
A total of 60 private insurance companies - 43 general and 17 life - are in operation in the country.
According to rules, the official said, the private insurance companies are required to mobilise at least 60 per cent of their required paid-up capital through IPO.
The CCI official said the floatation of IPO has been made mandatory for the insurance companies to make them operationally sound through raising their capital base.
Another important objective of the provision is to boost the country's capital market, sources said.
Presently, life insurance companies require a minimum paid-up capital of Tk 75 million to run their operation, while it has been fixed at Tk 150 million for general insurers.
But the capital base of several companies is still below the required level, they mentioned.
Besides, the authorities have already proposed raising the paid-up capital to Tk 300 million for life insurance companies and Tk 400 million for non-life insurers in the proposed Insurance Act 2009, which now awaits parliament's nod.
According the Insurance Bill, which has been placed in the House, the insurers have been given a five-year time period to enhance their capital base, it was learnt.
Officials of the Chief Controller of Insurance (CCI) said more than a dozen insurers are yet to float initial public offerings (IPOs).
Most of these companies have already applied to the Securities and Exchange Commission (SEC) for permission to float IPO, they mentioned.
Some of those have reportedly failed to comply with the IPO floatation guidelines while dilly-dally of the SEC is also responsible for the delay in floating IPO by some other companies, the officials added.
According to rule each of the non-listed insurance companies requires to pay Tk 1,000 as fine per day for missing their respective IPO floatation deadlines.
Normally, the CCI realises such financial penalty at the time of renewing their operating licences, especially at the end November every year.
"No insurance company can obtain any new policy without the renewal of their operating licences," said a CCI official.
The official also informed the FE that the CCI had realised about Tk 47.40 million in fine from the errant insurers till November 31, 2008.
A total of 60 private insurance companies - 43 general and 17 life - are in operation in the country.
According to rules, the official said, the private insurance companies are required to mobilise at least 60 per cent of their required paid-up capital through IPO.
The CCI official said the floatation of IPO has been made mandatory for the insurance companies to make them operationally sound through raising their capital base.
Another important objective of the provision is to boost the country's capital market, sources said.
Presently, life insurance companies require a minimum paid-up capital of Tk 75 million to run their operation, while it has been fixed at Tk 150 million for general insurers.
But the capital base of several companies is still below the required level, they mentioned.
Besides, the authorities have already proposed raising the paid-up capital to Tk 300 million for life insurance companies and Tk 400 million for non-life insurers in the proposed Insurance Act 2009, which now awaits parliament's nod.
According the Insurance Bill, which has been placed in the House, the insurers have been given a five-year time period to enhance their capital base, it was learnt.
Stocks end flat, turnover falls
Dhaka stocks ended flat Sunday with the turnover falling below Tk 7.0 billion (700 crore)-mark after seven weeks as the investors continued to take cautious stance ahead of Grameenphone debut due today (Monday).
The benchmark index started high, above the 3400-mark, but declined sharply by more than 50 points within the first half an hour of trade.
Then the market started to get back its rhythm riding on insurer and pharmaceutical issues but at the end of the day closed with a fractional gain.
The benchmark DSE General Index (DGEN) closed at 3383.23 with a fractional gain of 0.36 points or 0.01 per cent.
The broader DSE All Shares Price Index (DSI) shed 1.10 points or 0.03 per cent to 2832.25 while DSE-20 blue chips index lost 6.76 points or 0.29 per cent to 2278.49.
The turnover declined to Tk 6.95 billion, a decrease of 22 per cent over the previous session, its lowest since September 27 this year.
The turnover suffered heavily on the day as the investors took 'wait and see' policy ahead of the country's largest issue Grameenphone, dealers said.
Some investors remained idle Sunday to buy shares of the Grameenphone, they added.
Gainers took a strong lead over the losers as out of 228 issues traded, 126 advanced, 97 suffered losses and five remained unchanged.
After gaining good percentages during the last week, the banking sector went down with the overall sector falling by 2.51 per cent.
The majority of the non-banking financial institutions (NBFIs) edged lower while mutual funds got back its pulse after more than two weeks with the sector rising 4.01 per cent.
Energy sector ended mixed while all the companies of the Beximco group were up except Beximco Pharma.
Shares of the state-owned Padma Oil Company was the largest gainer following its impressive corporate declaration.
The company's board of directors has recommended 50 per cent cash dividend and 200 per cent stock dividend for the year 2008-2009.
Its share prices rose 42.78 per cent, making it also the top turnover leader with shares worth Tk 618.11 million changing hands.
It was followed by Jamuna Oil, Beximco, Bextex, Summit Alliance Port Ltd, DESCO, Uttara Finance and NCC Bank.
The benchmark index started high, above the 3400-mark, but declined sharply by more than 50 points within the first half an hour of trade.
Then the market started to get back its rhythm riding on insurer and pharmaceutical issues but at the end of the day closed with a fractional gain.
The benchmark DSE General Index (DGEN) closed at 3383.23 with a fractional gain of 0.36 points or 0.01 per cent.
The broader DSE All Shares Price Index (DSI) shed 1.10 points or 0.03 per cent to 2832.25 while DSE-20 blue chips index lost 6.76 points or 0.29 per cent to 2278.49.
The turnover declined to Tk 6.95 billion, a decrease of 22 per cent over the previous session, its lowest since September 27 this year.
The turnover suffered heavily on the day as the investors took 'wait and see' policy ahead of the country's largest issue Grameenphone, dealers said.
Some investors remained idle Sunday to buy shares of the Grameenphone, they added.
Gainers took a strong lead over the losers as out of 228 issues traded, 126 advanced, 97 suffered losses and five remained unchanged.
After gaining good percentages during the last week, the banking sector went down with the overall sector falling by 2.51 per cent.
The majority of the non-banking financial institutions (NBFIs) edged lower while mutual funds got back its pulse after more than two weeks with the sector rising 4.01 per cent.
Energy sector ended mixed while all the companies of the Beximco group were up except Beximco Pharma.
Shares of the state-owned Padma Oil Company was the largest gainer following its impressive corporate declaration.
The company's board of directors has recommended 50 per cent cash dividend and 200 per cent stock dividend for the year 2008-2009.
Its share prices rose 42.78 per cent, making it also the top turnover leader with shares worth Tk 618.11 million changing hands.
It was followed by Jamuna Oil, Beximco, Bextex, Summit Alliance Port Ltd, DESCO, Uttara Finance and NCC Bank.
Rupali wants govt to issue bonds against stuck-up SoE loans
The largely state-owned Rupali Bank Ltd, in a bid to reviving its financial health, has requested the ministry of finance to issue interest- bearing bonds against the money the state-owned enterprises (SoEs) and other government organizations owes to it.
The ministry is yet to make a decision to this effect, finance ministry sources said.
The major part of the Rupali Bank's classified loan, amounting to Tk. 16.30 billion, as of June 30 last belongs to the public sector entities. Of the classified loans, Tk. 4.97 billion is the principal amount and the rest is accumulated interest.
Finance ministry sources said the problems, including overdue SOEs' loans, capital shortfall and manpower shortage, facing the Rupali Bank need to be solved under a package programme.
However, the finance ministry boss is taking time to give a decision on the Bank, a high official of the MoF, preferring anonymity, said.
According to the data, the now-closed Adamjee Jute Mills owes the largest amount of overdue loan, Tk. 7.58 billion, to the Rupali Bank, followed by the Bangladesh Textile Mills Corporation, Tk 1.54 billion, the Bangladesh Agriculture Development Corporation, Tk 1.23 billion, the People's Jute Mills, Tk 1.08 billion, the Bangladesh Jute Mills Corporation, Tk 930 million, the Food Ministry, Tk 484 million, the Crescent Jute Mills, Tk 376 million, the Karim Jute Mills, Tk 312 million, and the Sylhet Pulp and Paper Mills Tk 152 million.
Besides, the Khulna textile Mills owes to the Bank Tk 95.6 million, the Khulna Newsprint Mill Tk 77 million, Bangladesh Aroma Tea Ltd Tk 44.4 million, Bharat Tea Estate Tk 39 million and the National News Publication Tk. 72 million.
Rupali Bank sources said they had to give loans to the SOEs at the insistence of the MoF since the government owns 94 per cent of the Bank's shares.
The MoF at a recent meeting asked the Rupali Bank to submit its total outstanding loans with the SOEs.
"It is the finance minister who would take the final decision on the fate of the Rupali
Bank. But he remains unresponsive until now," a frustrated official in the MoF told the FE.
Issues like appointing the Chief Executive Officer, increasing its paid -up capital by issuing right shares or by other means, issuing bonds against the SOE loans and recruiting adequate manpower, are some of the issues that need to be solved urgently, officials said.
The ministry is yet to make a decision to this effect, finance ministry sources said.
The major part of the Rupali Bank's classified loan, amounting to Tk. 16.30 billion, as of June 30 last belongs to the public sector entities. Of the classified loans, Tk. 4.97 billion is the principal amount and the rest is accumulated interest.
Finance ministry sources said the problems, including overdue SOEs' loans, capital shortfall and manpower shortage, facing the Rupali Bank need to be solved under a package programme.
However, the finance ministry boss is taking time to give a decision on the Bank, a high official of the MoF, preferring anonymity, said.
According to the data, the now-closed Adamjee Jute Mills owes the largest amount of overdue loan, Tk. 7.58 billion, to the Rupali Bank, followed by the Bangladesh Textile Mills Corporation, Tk 1.54 billion, the Bangladesh Agriculture Development Corporation, Tk 1.23 billion, the People's Jute Mills, Tk 1.08 billion, the Bangladesh Jute Mills Corporation, Tk 930 million, the Food Ministry, Tk 484 million, the Crescent Jute Mills, Tk 376 million, the Karim Jute Mills, Tk 312 million, and the Sylhet Pulp and Paper Mills Tk 152 million.
Besides, the Khulna textile Mills owes to the Bank Tk 95.6 million, the Khulna Newsprint Mill Tk 77 million, Bangladesh Aroma Tea Ltd Tk 44.4 million, Bharat Tea Estate Tk 39 million and the National News Publication Tk. 72 million.
Rupali Bank sources said they had to give loans to the SOEs at the insistence of the MoF since the government owns 94 per cent of the Bank's shares.
The MoF at a recent meeting asked the Rupali Bank to submit its total outstanding loans with the SOEs.
"It is the finance minister who would take the final decision on the fate of the Rupali
Bank. But he remains unresponsive until now," a frustrated official in the MoF told the FE.
Issues like appointing the Chief Executive Officer, increasing its paid -up capital by issuing right shares or by other means, issuing bonds against the SOE loans and recruiting adequate manpower, are some of the issues that need to be solved urgently, officials said.
Investors urge SEC not to appeal against HC verdict
A group of retail investors once again urged the stock market regulator not to appeal against the High Court verdict on the mutual fund case.
They made the plea by submitting a memorandum to the Securities and Exchange Commission yesterday.
Earlier, hundreds of investors took out a procession under the banner Share Market Retail Investors Forum from the Dhaka Stock Exchange building to SEC building.
They said due to the writ petition, mutual funds were not giving dividends for a couple of years now.
The case has now been resolved by the High Court. If the SEC appeals with the Supreme Court, the issue of dividends will remain pending once again, they said.
The High Court on November 8 handed down a verdict allowing closed-end mutual funds to issue bonus or right issues.
After the verdict, SEC said it would appeal to the Supreme Court next.
In yesterday's memorandum, investors also urged SEC to withdraw a ban on margin loan facilities to mutual funds.
On Saturday, investors submitted a memorandum to the prime minister, seeking her intervention in the mutual fund issue.
Investors also said they will submit a copy of the memorandum to the finance ministry today.
They made the plea by submitting a memorandum to the Securities and Exchange Commission yesterday.
Earlier, hundreds of investors took out a procession under the banner Share Market Retail Investors Forum from the Dhaka Stock Exchange building to SEC building.
They said due to the writ petition, mutual funds were not giving dividends for a couple of years now.
The case has now been resolved by the High Court. If the SEC appeals with the Supreme Court, the issue of dividends will remain pending once again, they said.
The High Court on November 8 handed down a verdict allowing closed-end mutual funds to issue bonus or right issues.
After the verdict, SEC said it would appeal to the Supreme Court next.
In yesterday's memorandum, investors also urged SEC to withdraw a ban on margin loan facilities to mutual funds.
On Saturday, investors submitted a memorandum to the prime minister, seeking her intervention in the mutual fund issue.
Investors also said they will submit a copy of the memorandum to the finance ministry today.
PADMAOIL
The Board of Directors has recommended cash dividend @ 50% (i.e. Tk. 5.00 per share) and stock dividend @ 200% (i.e. 2 bonus shares for every 1 share held) for the year 2008-2009. Date of AGM: 23.01.10, Time: 11:30 AM, Venue: "Main Installation", Guptakhal, Patenga, Chittagong. Record Date: 07.12.09. The company has also reported Earning Per share (EPS) of Tk. 45.88, Net Asset Value (NAV) per share of Tk. 185.14 and Net Operating Cash Flow per share of Tk. 0.80 for the year ended on June 30, 2009. The Board has also decided to increase the Authorized Capital from Tk. 10.00 crore to Tk. 100.00 crore and accordingly relevant clauses of the Memorandum of Association and Articles of Association of the Company will be amended subject to the approval from regulatory authority and the Shareholders in the forthcoming AGM.
14 Nov 2009
Ex-finance adviser against regulator's frequent intervention in stock market
ormer finance adviser Dr Mirza Azizul Islam yesterday said regulatory authorities should not always intervene in the capital market.
“In principle, I'm against intervention in the market, but sometimes it has become investigable to protect people's interest due to various problems,” he said while speaking at the inaugural session of a daylong workshop on capital market.
Economic Reporters Forum (ERF) and Dhaka Stock Exchange (DSE) jointly organised the workshop at the DSE training center. DSE President Md Rakibur Rahman and ERF President Nazmul Ahsan were present at the inaugural session.
Dr Aziz mentioned that the intervention should be made to protect interests of investors and the country.
He, however, said the world recently faced the biggest economic meltdown due to non-intervention and lack of monitoring.
Aziz also advocated parleys with stakeholders before going for any sort of intervention in the capital market.
The former finance adviser criticised the attitude of the government in offloading the state-owned enterprises and said government officials concerned should be motivated in this regard.
“People at the capital market will have to convince the government officials that the offloading of state-owned enterprises would not cut down their authority,” he told the workshop.
Describing the trend of the economies in countries like Bangladesh, the former chairman of the Securities and Exchange Commission (SEC) said banks should play the main role at the initial stage and then the capital market should come to play its part.
He also said many government officials of the country do not have any idea how the capital market could boost the economy by helping the government raise funds.
He said raising funds from the capital market is cost effective than going to banks. “You'll have to shoulder some set liabilities for your bank loans, but you don't need to give dividends despite losses in business.”
Aziz said the country's capital market will develop gradually as the present government is very cordial to do that.
Responding to a question, the former finance adviser said there is no fake share in the capital market right now.
“The present infrastructure of the market is not suitable for the vested quarters to indulge in foul play with fake shares,” he sai
“In principle, I'm against intervention in the market, but sometimes it has become investigable to protect people's interest due to various problems,” he said while speaking at the inaugural session of a daylong workshop on capital market.
Economic Reporters Forum (ERF) and Dhaka Stock Exchange (DSE) jointly organised the workshop at the DSE training center. DSE President Md Rakibur Rahman and ERF President Nazmul Ahsan were present at the inaugural session.
Dr Aziz mentioned that the intervention should be made to protect interests of investors and the country.
He, however, said the world recently faced the biggest economic meltdown due to non-intervention and lack of monitoring.
Aziz also advocated parleys with stakeholders before going for any sort of intervention in the capital market.
The former finance adviser criticised the attitude of the government in offloading the state-owned enterprises and said government officials concerned should be motivated in this regard.
“People at the capital market will have to convince the government officials that the offloading of state-owned enterprises would not cut down their authority,” he told the workshop.
Describing the trend of the economies in countries like Bangladesh, the former chairman of the Securities and Exchange Commission (SEC) said banks should play the main role at the initial stage and then the capital market should come to play its part.
He also said many government officials of the country do not have any idea how the capital market could boost the economy by helping the government raise funds.
He said raising funds from the capital market is cost effective than going to banks. “You'll have to shoulder some set liabilities for your bank loans, but you don't need to give dividends despite losses in business.”
Aziz said the country's capital market will develop gradually as the present government is very cordial to do that.
Responding to a question, the former finance adviser said there is no fake share in the capital market right now.
“The present infrastructure of the market is not suitable for the vested quarters to indulge in foul play with fake shares,” he sai
Frequent SEC intervention in share market criticized
ormer Finance Adviser AB Mirza Md Azizul Islam criticised Saturday the role of the Securities and Exchange Commission (SEC) for its excessive intervention on the capital market. He also blasted the government for being indifferent to the need for offloading shares of the corporatised state-owned organisations.
Mirza Aziz termed the present market scenario 'resilient' and sought punitive actions against the individuals involved in the share market scam in 1996.
"The SEC should not intervene on the market regularly," Aziz said as the Chief Guest while inaugurating a
'Orientation Course on Capital Market for Economic Reporters,' held at the Dhaka Stock Exchange (DSE) Training Academy.
"The mechanism for market intervention, if considered inevitable, should be finalized in consultation with stakeholders to avert controversy and choose the right direction,' Aziz, also a former SEC Chairman added.
The day long workshop was jointly organised by the Economic Reporters' Forum (ERF) and the DSE Training Academy. DSE President MD Rakibur Rahman, Professor Abu Ahmed, ERF President Nazmul Ahsan, Executive Directors of SEC Anwarul Kabir Bhuiyan and Farhad Ahmed and ERF General Secretary Sajjad Alam Khan spoke at the occasion.
Mirza Aziz said the market should act on its own without any intervention by the regulatory agency. Regular intervention by the watchdog body harms the normal growth of the market, he added.
Criticising the government, the former finance adviser said the government has no clear idea of the capital market and this has resulted in indifference on the part bureaucrats to the offloading of the shares of the state-owned corporatised bodies.
"I can say for sure that the government has no clear idea about the ways of vitalizing the capital market,'' the former finance adviser said.
"Three state-owned banks, Biman Bangladesh Airlines and BTCL were corporatised during my period as finance adviser so that a considerable portion of their shares are offloaded into the share market,'
"No progress has so far been made to this effect though the incumbent government took the office about one year back.''
Mirza Aziz said the long term investment if made through bank loans would carry potential risks as majority of banks deposits are short-term in nature, which makes maturity mismatch.
He said the potential issuers prefer to bank loans as such loans has no accountability.
Responding to a query, Mirza Aziz admitted that some government officials are protesting the move to offload shares of state-owned enterprises (SOEs) to protect their 'vested' interests.
But they should be aware that they could continue enjoying some privileges even after offloading share of the SOEs, he said.
"A firm intention of the policymakers is necessary to offload SoE shares in the capital market and move forward the country's economy," he added.
The DSE President said the excessive intervention and directives by regulatory authority have been hampering the growth of the capital market.
Rakib said the government is suffering from the lack of coordination in offloading shares of state-owned enterprises and collecting funds from the share market to construct large infrastructure projects.
A section of bureaucrats not having even a minimum knowledge of capital market is acting as barriers to the growth of share market, overtly or covertly, he maintained.
He urged the authorities concerned to settle the litigation at the earliest, terming the Mutual Fund as the important element of the capital market.
Professor Abu Ahmed said both the government and bureaucrats must have clear desire to strengthen the capital market through offloading the shares of government-owned institutions.
Criticising the role of SEC, the capital market analyst said the top bosses of listed companies bracketed in 'Z' category use luxury vehicles, while declaring their companies as loss making.
He said the 'placement business' has emerged in the country in recent times, which should be stopped without further delay.
Anwarul Kabir Bhuiyan said a group of people is spreading the rumour that the face value of issues would be made at Tk 10. This is not true, he added.
"The SEC has not taken any such decision. The issue was only recommended by a body. Its implementation will be a lengthy process and we have many things to examine towards implementing the recommendation," Kabir told the meeting.
A total of 50 ERF members took part at the day-long workshop.
Mirza Aziz termed the present market scenario 'resilient' and sought punitive actions against the individuals involved in the share market scam in 1996.
"The SEC should not intervene on the market regularly," Aziz said as the Chief Guest while inaugurating a
'Orientation Course on Capital Market for Economic Reporters,' held at the Dhaka Stock Exchange (DSE) Training Academy.
"The mechanism for market intervention, if considered inevitable, should be finalized in consultation with stakeholders to avert controversy and choose the right direction,' Aziz, also a former SEC Chairman added.
The day long workshop was jointly organised by the Economic Reporters' Forum (ERF) and the DSE Training Academy. DSE President MD Rakibur Rahman, Professor Abu Ahmed, ERF President Nazmul Ahsan, Executive Directors of SEC Anwarul Kabir Bhuiyan and Farhad Ahmed and ERF General Secretary Sajjad Alam Khan spoke at the occasion.
Mirza Aziz said the market should act on its own without any intervention by the regulatory agency. Regular intervention by the watchdog body harms the normal growth of the market, he added.
Criticising the government, the former finance adviser said the government has no clear idea of the capital market and this has resulted in indifference on the part bureaucrats to the offloading of the shares of the state-owned corporatised bodies.
"I can say for sure that the government has no clear idea about the ways of vitalizing the capital market,'' the former finance adviser said.
"Three state-owned banks, Biman Bangladesh Airlines and BTCL were corporatised during my period as finance adviser so that a considerable portion of their shares are offloaded into the share market,'
"No progress has so far been made to this effect though the incumbent government took the office about one year back.''
Mirza Aziz said the long term investment if made through bank loans would carry potential risks as majority of banks deposits are short-term in nature, which makes maturity mismatch.
He said the potential issuers prefer to bank loans as such loans has no accountability.
Responding to a query, Mirza Aziz admitted that some government officials are protesting the move to offload shares of state-owned enterprises (SOEs) to protect their 'vested' interests.
But they should be aware that they could continue enjoying some privileges even after offloading share of the SOEs, he said.
"A firm intention of the policymakers is necessary to offload SoE shares in the capital market and move forward the country's economy," he added.
The DSE President said the excessive intervention and directives by regulatory authority have been hampering the growth of the capital market.
Rakib said the government is suffering from the lack of coordination in offloading shares of state-owned enterprises and collecting funds from the share market to construct large infrastructure projects.
A section of bureaucrats not having even a minimum knowledge of capital market is acting as barriers to the growth of share market, overtly or covertly, he maintained.
He urged the authorities concerned to settle the litigation at the earliest, terming the Mutual Fund as the important element of the capital market.
Professor Abu Ahmed said both the government and bureaucrats must have clear desire to strengthen the capital market through offloading the shares of government-owned institutions.
Criticising the role of SEC, the capital market analyst said the top bosses of listed companies bracketed in 'Z' category use luxury vehicles, while declaring their companies as loss making.
He said the 'placement business' has emerged in the country in recent times, which should be stopped without further delay.
Anwarul Kabir Bhuiyan said a group of people is spreading the rumour that the face value of issues would be made at Tk 10. This is not true, he added.
"The SEC has not taken any such decision. The issue was only recommended by a body. Its implementation will be a lengthy process and we have many things to examine towards implementing the recommendation," Kabir told the meeting.
A total of 50 ERF members took part at the day-long workshop.
13 Nov 2009
Investors' awareness programmes receive good response
Programmes arranged to create investors' awareness by the Securities and Exchange Commission (SEC) and the Dhaka Stock Exchange (DSE) are now drawing a large number of investors.
Dhaka Stock Exchange (DSE) is also having a similar response from the investors in its 'weekly' and 'monthly' awareness programmes.
"We have limitations and regular office duties. In spite of our daily business we are arranging the programmes. It's not possible to accommodate the all newcomers in the programmes. But there is no cause for frustration as we will continue the programmes year after year," Mansur Alam, a member of the SEC, told the FE Friday.
"After a few days I will go on LPR. Without having prior knowledge I do not want to be involved in the stock market," Zia-ul Hasan, a detective officer who was unable to be enrolled in the SEC awareness programme, told the FE.
"The SEC takes no fees from the participants. Through the regular business we try to make the investors conscious about their investment and the stock market," ATM Tarquzzaman, an executive director of the SEC, told the FE.
"It's a positive sign for our capital market. The more the investors will come to participate in the awareness programmes the more they will be benefited. We will extend the programmes across the country with the stock branches," Rakibur Rahman, president of DSE, told the FE.
"Students and interested persons of different professions and the subscribers of different companies are coming to attend the awareness programmes," the officials of SEC told the FE.
"Every day a large number of subscribers communicate over the telephone and come in person to collect enrolment forms of the programme. Most of the new comers are the subscribers of Grameen Phone, but we are not able to allow them after closing the enrolment procedure," Mahbubur Rahman, a senior officer of SEC, told the FE Thursday.
"Already the vacancies up to next June have been filled. As a result, being frustrated the subscribers are going back," Mahbubur Rahman added.
According to the officials, from January to March of 2009, 152 participants attended the education programme of the SEC. They were taught the relevant laws of stock markets, rules and regulations, the structure of regulatory and surveillance syst
Dhaka Stock Exchange (DSE) is also having a similar response from the investors in its 'weekly' and 'monthly' awareness programmes.
"We have limitations and regular office duties. In spite of our daily business we are arranging the programmes. It's not possible to accommodate the all newcomers in the programmes. But there is no cause for frustration as we will continue the programmes year after year," Mansur Alam, a member of the SEC, told the FE Friday.
"After a few days I will go on LPR. Without having prior knowledge I do not want to be involved in the stock market," Zia-ul Hasan, a detective officer who was unable to be enrolled in the SEC awareness programme, told the FE.
"The SEC takes no fees from the participants. Through the regular business we try to make the investors conscious about their investment and the stock market," ATM Tarquzzaman, an executive director of the SEC, told the FE.
"It's a positive sign for our capital market. The more the investors will come to participate in the awareness programmes the more they will be benefited. We will extend the programmes across the country with the stock branches," Rakibur Rahman, president of DSE, told the FE.
"Students and interested persons of different professions and the subscribers of different companies are coming to attend the awareness programmes," the officials of SEC told the FE.
"Every day a large number of subscribers communicate over the telephone and come in person to collect enrolment forms of the programme. Most of the new comers are the subscribers of Grameen Phone, but we are not able to allow them after closing the enrolment procedure," Mahbubur Rahman, a senior officer of SEC, told the FE Thursday.
"Already the vacancies up to next June have been filled. As a result, being frustrated the subscribers are going back," Mahbubur Rahman added.
According to the officials, from January to March of 2009, 152 participants attended the education programme of the SEC. They were taught the relevant laws of stock markets, rules and regulations, the structure of regulatory and surveillance syst
12 Nov 2009
Investors demonstrate against price fall of DSE shares
Dhaka stocks Thursday saw the biggest single-day fall in more than four months amid protests by investors, as retailers took wait-and-see approach ahead of the debut of the country's largest initial public offering, Grameenphone.
The benchmark DSE General Index (DGEN) dropped some 60 points across the board when the trading began, sending scores of angry investors to the streets, but made some recoveries in late hours, led by banking shares.
The DGEN still shed 39.75 points --- it's biggest single-day drop since July 5 when the index lost 103 points --- to close at 3382.87, which is 1.16 per cent down from the previous day.
Police were called in to step up security in front of the DSE trading floors and the Securities and Exchange Commission (SEC) office, as more than 50 investors staged demonstration, demanding easing of lending regulations for securities.
The protesters put up blockade in the Motijheel commercial area for half an hour and marched through the busy streets to the SEC office. Police said they have no report of violence.
The securities regulator last month tightened lending to mutual funds, paper shares and some risky securities in an effort to cool down what it said an 'overvalued' market.
The broader DSE All Shares Price Index (DSI) lost 32.82 points or 1.14 per cent to 2833.35 while DSE-20 blue chips index dropped 12.82 points or 0.55 per cent to 2285.25.
The market was skewed
towards declines as out of 227 issues traded, 67 advanced, 159 suffered losses and one remained unchanged. The turnover declined to Tk 8.90 billion against the previous session's Tk 10.88 billion.
Dealers said the market nose-dived due to the cautious attitude of the investors, as many were waiting in keen anticipation for next week's debut of the Grameenphone, the largest private company in the country.
"Investors, mostly small, sold their shares in a bid to see how the market reacts when Grameenphone (GP) makes its much-talked-about debut on Monday," said a stockbroker, asking not to be named.
"But a late gain by banking shares saved some blushes," he added.
The SEC also discussed GP's debut and its possible impact in the market.
"The commission thinks that there will be no major impact when GP debuts in the market," said a SEC official.
"Still, we shall observe the company's trading for two to three days. We'll be ready for any prompt action if we see any adverse situation," he added.
Shares of the state-owned Power Grid Company topped the turnover list with shares worth Tk 501.90 million changing hands.
It was followed by Titas Gas, AB Bank, Beximco, Jamuna Oil, Bextex, Standard Bank Ltd, Social Investment Bank Ltd, Premier Leasing and Al Arafah Bank.
The benchmark DSE General Index (DGEN) dropped some 60 points across the board when the trading began, sending scores of angry investors to the streets, but made some recoveries in late hours, led by banking shares.
The DGEN still shed 39.75 points --- it's biggest single-day drop since July 5 when the index lost 103 points --- to close at 3382.87, which is 1.16 per cent down from the previous day.
Police were called in to step up security in front of the DSE trading floors and the Securities and Exchange Commission (SEC) office, as more than 50 investors staged demonstration, demanding easing of lending regulations for securities.
The protesters put up blockade in the Motijheel commercial area for half an hour and marched through the busy streets to the SEC office. Police said they have no report of violence.
The securities regulator last month tightened lending to mutual funds, paper shares and some risky securities in an effort to cool down what it said an 'overvalued' market.
The broader DSE All Shares Price Index (DSI) lost 32.82 points or 1.14 per cent to 2833.35 while DSE-20 blue chips index dropped 12.82 points or 0.55 per cent to 2285.25.
The market was skewed
towards declines as out of 227 issues traded, 67 advanced, 159 suffered losses and one remained unchanged. The turnover declined to Tk 8.90 billion against the previous session's Tk 10.88 billion.
Dealers said the market nose-dived due to the cautious attitude of the investors, as many were waiting in keen anticipation for next week's debut of the Grameenphone, the largest private company in the country.
"Investors, mostly small, sold their shares in a bid to see how the market reacts when Grameenphone (GP) makes its much-talked-about debut on Monday," said a stockbroker, asking not to be named.
"But a late gain by banking shares saved some blushes," he added.
The SEC also discussed GP's debut and its possible impact in the market.
"The commission thinks that there will be no major impact when GP debuts in the market," said a SEC official.
"Still, we shall observe the company's trading for two to three days. We'll be ready for any prompt action if we see any adverse situation," he added.
Shares of the state-owned Power Grid Company topped the turnover list with shares worth Tk 501.90 million changing hands.
It was followed by Titas Gas, AB Bank, Beximco, Jamuna Oil, Bextex, Standard Bank Ltd, Social Investment Bank Ltd, Premier Leasing and Al Arafah Bank.
ALARABANK
ALARABANK:
The Bank has informed that the Board of Directors of the Bank has decided to hold an EGM on 13.12.09 at 11:00 AM at Trust Milonayoton, Dhaka Cantonment, Dhaka for amending the some Clauses of Memorandum and Articles of Association of the Bank, among others, are as follows: The authorized share capital of the company is taka 500,00,00,000.00 divided into 50 crore ordinary shares of Tk. 10.00 each with power to increase or reduce the capital, to divide or sub-divide the shares in the capital for the time being into several classes and to attach thereto respectively such preferential, deferred, qualified or special rights, privileges or conditions as may be determined by or in accordance with the regulations of the company and to vary modify or abrogate any such rights, privileges or conditions in such manner as may be for the time being be provided by the regulations of the company and consolidate or subdivide the shares and issue shares of higher or lower denominations. The market lot of the shares shall be 250 subject to approval of Regulatory Authorities. Record date of EGM: 18.11.09.
11 Nov 2009
Gp
Grameenphone Ltd.: As per decision of the Board of Directors of DSE, trading of the shares of Grameenphone Ltd. will start on November 16, 2009 under 'N' category. DSE Trading Code for Grameenphone Ltd. is "GP" and DSE company code # 27001.
Non-banks widen share in private sector credit
Non-bank financial institutions (NBFIs) are increasingly coming forward to finance private sector investments that are still dominated by the banking sector, according to a Bangladesh Bank (BB) report.
NBFI's share in private sector credit reached over 5 percent at the end of Q1 of the current fiscal year from less than 4 percent four years ago, according to the BB quarterly report for July-September.
Aggregate private sector credit stood at Tk 2,478 billion at the end of September, of which NBFI share was only Tk 125 billion.
Private sector credit disbursement by NBFIs increased by over 21 percent in the July-September period of fiscal 2009-10 compared to the same period a year ago, despite a sharp decline in demand. While bank credit growth was slightly over two percent in Q1 of 2009-10 than that of Q1 last year.
“A part of banking sector credit is absorbed by non-bank institutions,” observed the latest BB quarterly report released this week.
Although NBFI's contribution to private sector credit still remains insignificant in comparison to the banks, it is rising persistently.
NBFIs disbursed nearly Tk 5.5 billion to the private sector in the July-September quarter, which was less than Tk 3 billion in the previous quarter.
Sector people said in recent years most NBFIs have diversified their products and services to many other areas, such as small loans, housing loans, start-up working capital and domestic factoring of accounts receivable, to net more businesses.
Some of these non-bank institutions have already introduced new financial instruments like bonds, securitisation, syndication services, merchant banking and stock brokerage.
Term lending by these financial institutions are also rising -- reaching Tk 7.12 billion at the end of June from Tk 5.25 billion in March.
Mafizuddin Sarker, managing director of LankaBangla Finance, also said NBFI participation in private sector financing has increased.
“Now we fund a lot of industries for their balancing, modernisation, rehabilitation and extension (BMRE),” said Sarker, also the president of the Bangladesh Leasing and Finance Companies Association.
NBFIs are also lending more towards working capital, to bridge fund inflow and outflow in business cycles, he added.
A total of 29 NBFIs are operating in Bangladesh. Their total paid-up capital is less than Tk 20 billion. Banks are their main source of funds.
The total assets figure of the leasing industry has been rising at an average rate of nearly 25 percent a year for the last five years, according to the industry people.
KOHINOOR; ZEALBANGLA
The Board of Directors has recommended cash dividend @ 40% for the year 2008-2009. Date of AGM: 17.12.09, Time: 9:00 a.m.,Venue: Bangabandhu International Conference Centre, Agargaon, Sher-E-Bangla Nagar, Dhaka. Book closure: 27.11.09 to 17.12.09. The company has also reported Earning Per share (EPS) of Tk. 76.69, Net Asset Value (NAV) per share of Tk. (124.83) and Net Operating Cash Flow per share of Tk. 249.17 for the year ended on June 30, 2009.
ZEALBANGLA
The Board of Directors did not recommend any dividend for the year 2008-2009. Date of AGM: 26.12.09, Time: 10:00 AM, Venue: Jamalpur Shilpakala Academy Auditorium, Jamalpur. Book Closure: 08.12.09 to 26.12.09.
ZEALBANGLA
The Board of Directors did not recommend any dividend for the year 2008-2009. Date of AGM: 26.12.09, Time: 10:00 AM, Venue: Jamalpur Shilpakala Academy Auditorium, Jamalpur. Book Closure: 08.12.09 to 26.12.09.
SC halts HC order on MF shares
The Supreme Court on Wednesday halted for two weeks the High Court order on mutual funds to issue rights and bonuses shares.
Justice Mohammad Mozammel Hossain, a chamber judge at the Appellate Division, gave the order .
The High Court on Sunday held back its verdict given the same day, which allows mutual funds to issue rights and bonus shares, for seven days.
SEC's lawyer Mahmudul Islam asked for the halt as they would appeal against the verdict, M Zahir, the counsel for the petitioners, said.
Three investors in share markets Ibrahim Akand, Raihana Haque, Delwar Hossain petitioned the HC on Aug 28, 2008, challenging SEC's decision on Mutual Fund.
The SEC on July 22 amended the rule regarding mutual funds where it prohibited mutual funds to increase its paid up capital through issuing rights shares.
The decision also barred mutual fund operators to issue bonus shares as dividend.
Consequently, Mutual Fund faced massive fall in its shares prices, leading to discontent among small investors.
Justice Mohammad Mozammel Hossain, a chamber judge at the Appellate Division, gave the order .
The High Court on Sunday held back its verdict given the same day, which allows mutual funds to issue rights and bonus shares, for seven days.
SEC's lawyer Mahmudul Islam asked for the halt as they would appeal against the verdict, M Zahir, the counsel for the petitioners, said.
Three investors in share markets Ibrahim Akand, Raihana Haque, Delwar Hossain petitioned the HC on Aug 28, 2008, challenging SEC's decision on Mutual Fund.
The SEC on July 22 amended the rule regarding mutual funds where it prohibited mutual funds to increase its paid up capital through issuing rights shares.
The decision also barred mutual fund operators to issue bonus shares as dividend.
Consequently, Mutual Fund faced massive fall in its shares prices, leading to discontent among small investors.
UCBL
The next hearing on the writ concerning the United Commercial Bank Limited (UCBL) will be held on December 7.
A full bench of the Appellate Division headed by Chief Justice M M Ruhul Amin fixed the date after hearing Wednesday.
Azmalul Hossain QC appeared in the court on behalf of the UCBL and Dr M Zahir on behalf of investors.
A full bench of the Appellate Division headed by Chief Justice M M Ruhul Amin fixed the date after hearing Wednesday.
Azmalul Hossain QC appeared in the court on behalf of the UCBL and Dr M Zahir on behalf of investors.
Singer Bangladesh
Singer Bangladesh Limited has received 'Best Presented Accounts and Corporate Governance Disclosures Awards 2008' as Joint 1st Runner-up under Manufacturing category from South Asian Federation of Accountants (SAFA), an apex body of SAARC.
Managing Director & CEO of Singer Bangladesh Limited and Regional Vice President of Singer Asia Limited Mr. A.M. Hamim Rahmatullah received the prestigious award from Finance Minister Mr. Abul Maal Abdul Muhith at a function on November 5, 2009 at Bangabandhu International Conference Centre in the city.
The award is conferred on the basis of evaluation administered by SAFA's Committee for Improvement in Transparency, Accountability and Governance of the published annual reports of entries from South Asian countries.
Meanwhile, Prime Bank Limited has been awarded SAFA Best Bank-2008 on the basis of evaluation of annual report.
Finance Minister Abul Maal Abdul Muhith presented an award as the chief guest to the Managing Director M Ehsanul Haque at a function.
Managing Director & CEO of Singer Bangladesh Limited and Regional Vice President of Singer Asia Limited Mr. A.M. Hamim Rahmatullah received the prestigious award from Finance Minister Mr. Abul Maal Abdul Muhith at a function on November 5, 2009 at Bangabandhu International Conference Centre in the city.
The award is conferred on the basis of evaluation administered by SAFA's Committee for Improvement in Transparency, Accountability and Governance of the published annual reports of entries from South Asian countries.
Meanwhile, Prime Bank Limited has been awarded SAFA Best Bank-2008 on the basis of evaluation of annual report.
Finance Minister Abul Maal Abdul Muhith presented an award as the chief guest to the Managing Director M Ehsanul Haque at a function.
10 Nov 2009
GP coming on Sunday
Grameenphone shares will hit the prime bourse on Monday Nov 16, as the largest issue in the country's history, the Dhaka Stock Exchange president said Wednesday. Rakibur Rahman told that the date was fixed at a DSE board meeting Wednesday.
There had been widespread speculation the issue would start trading from Sunday Nov 15.
Chittagong Stock Exchange is also likely to start trading of the scrip the same day, though officials could not confirm. The port city bourse authority handed GP the listing confirmation letter Wednesday at its Dhaka office.
There had been widespread speculation the issue would start trading from Sunday Nov 15.
"We are all set to start from Sunday but if GP wants, we will start on Monday," AKM Shahroze Alam, manager of CSE's corporate development wing
AL-HAJTEX; DULAMIACOT; SAMORITA; TALLUSPIN; MITHUNKNIT; BANGAS
AL-HAJTEX:
The Board of Directors has recommended stock dividend @ 10% for the year 2008-2009 in pursuance of clause 66 & 67 of the Articles of Association of the company, subject to the approval at the forthcoming AGM by the shareholders. Date of AGM: 24.12.09, Time: 03:00 PM, Venue: Factory Premises of the Company, I.K. Road, Ishurdi, Pabna. Record Date: 01.12.09. The company has also reported Net Asset Value (NAV) per share of Tk. 39.16, Earning Per share (EPS) of Tk. (1.71) and Net Operating Cash Flow per share of Tk. 0.03 for the year ended on June 30, 2009.
DULAMIACOT:
The Board of Directors has recommended cash dividend @ 2% (for public shareholders other than sponsors) for the year 2008-2009. Date of AGM: 26.12.09, Time: 12.00 Noon, Venue: Factory Premises, Dagonbhuyan, Feni. Book Closure: 01.12.09 to 26.12.09.
SAMORITA:
The Board of Directors has recommended stock dividend @ 15% for the year 2008- 2009. The Company has also informed that an EGM will also be held to amend certain clauses of Memorandum and Articles of Association of the Company. Date of EGM & AGM: 07.01.10, Time of EGM & AGM: 10:00 AM & 11.00 AM respectively, Venue for EGM & AGM: LGED Auditorium, LGED Bhaban, Sher-e-Bangla Nagar, Agargaon, Dhaka. Record Date for EGM & AGM: 01.12.09. The company has also reported Net Asset Value (NAV) per share of Tk. 159.25, Earning Per share (EPS) of Tk. 31.94 and Net Operating Cash Flow per share of Tk. 48.11 for the year ended on June 30, 2009.
TALLUSPIN:
The Board of Directors did not recommend any dividend for the year 2008-2009. Date of AGM: 20.12.09, Time: 12.00 noon, Venue: Company's Registered Office at Chuadanga. Record Date: 26.11.09. The company has also reported Net Asset Value (NAV) per share of Tk. 117.96, Earning Per share (EPS) of Tk. (10.89) and Net Operating Cash Flow per share of Tk. (25.95) for the year ended on June 30, 2009.
MITHUNKNIT:
The Board of Directors has recommended cash dividend @ 10% for the year 2008- 2009. Date of AGM: 20.12.09, Time: 11:00 AM, Venue: Company's Registered Office at Chuadanga. Record Date: 26.11.09. The company has also reported Net Asset Value (NAV) per share of Tk. 179.04, Earning Per share (EPS) of Tk. 17.79 and Net Operating Cash Flow per share of Tk. (25.73) for the year ended on June 30, 2009.
BANGAS:
The Board of Directors has recommended cash dividend @ 15% for the year 2008- 2009. Date of AGM: 20.12.09, Time: 10:00 AM, Venue: Company's Registered Office at Chuadanga. Record Date: 26.11.09. The company has also reported Net Asset Value (NAV) per share of Tk. 164.80, Earning Per share (EPS) of Tk. 17.02 and Net Operating Cash Flow per share of Tk. (25.25) for the year ended on June 30, 2009.
GEMINISEA; SHYAMPSUG; EASTRNLUB
| GEMINISEA: |
SHYAMPSUG
The Board of Directors did not recommend any dividend for the year 2008-2009. Date of AGM: 12.12.09, Time: 10:00 a.m., Venue: Training Complex of the Company, Shyampur, Rangpur. Book closure: 03.12.09 to 12.12.09. As per audited accounts as on 30.06.09, the Company has reported net loss of Tk. (133.45) m. with EPS of Tk. (26.69) as against Tk. (104.58) m. and Tk. (20.92) respectively as on 30.06.08. Accumulated loss of the Company was Tk. (1,305.52) m. as on 30.06.09.
EASTRNLUB
The Board of Directors has recommended cash dividend @ 25% (Tk. 2.50 per share) for the year 2008-2009. Date of AGM: 30.01.10, Time: 11:30 AM, Venue: Padma Bhaban, Strand Road, Sadarghat, Chittagong. Book closure: 26.11.09 to 03.12.09.
9 Nov 2009
Al-Arafah Islami Bank Brokerage House opens new trading booths
Al-Arafah Islami Bank Ltd Brokerage House has opened its new trading booths at Dilkusha commercial area in the city recently.
Badiur Rahman, chairman of the bank, inaugurated the new booths, according to a press release.
Former chairman of the bank Md Anwar Hossain, Managing Director MA Samad Sheikh, Additional Managing Director ATM Harunur Rashid, Deputy Managing Director Md Rafiqul Islam, Executive Vice President and Head of the brokerage house Rezaur Rahman were present in the inaugural function.
Badiur Rahman, chairman of the bank, inaugurated the new booths, according to a press release.
Former chairman of the bank Md Anwar Hossain, Managing Director MA Samad Sheikh, Additional Managing Director ATM Harunur Rashid, Deputy Managing Director Md Rafiqul Islam, Executive Vice President and Head of the brokerage house Rezaur Rahman were present in the inaugural function.
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