Twenty-four listed companies will be relegated to 'B' category from the existing 'A', as paper share is not allowed for trading under 'A' category from January .
The Dhaka Stock Exchange disclosed names of the companies on its website yesterday. The firms failing to transform their paper shares into electronic ones by December 31 face this degradation from January 3.
The companies are Azadi Printers, Bangladesh Hotels, Bangladesh Plantation, Bangladesh Services, Eastern Lubricants Blenders, The Engineers, Fine Foods, Gemini Sea Food, Hill Plantation, Himadri, Jute Spinners, Kohinoor Chemical Company (Bangladesh) , Libra Infusions, Monno Ceramic Industries, Monno Jutex Industries, Monno Jute Stafllers, National Tea Company, Orion Infusion, Pharma Aids, Prime Textile Spinning Mills, Renwick Jajneswar & Company (Bangladesh) , Saiham Textile Mills, Sinobangla Industries and SonaliAansh Industries.
Earlier in July this year, the Securities and Exchange Commission announced that paper share will not be allowed for trading under 'A' category from January next, as paper shares create problems in settling those in an electronic trading system.
30 Dec 2009
Investors threaten tougher movement
A group of retail investors took to the streets yesterday demanding withdrawal of loan restrictions on mutual funds and retraction of the announcement of pulling out the funds having no maturity period from the market.
The investors, who have investment in mutual funds, staged demonstration in front of both Dhaka Stock Exchange and Securities and Exchange Commission under the banner of 'Share Market Retail Investors Forum'.
They also met SEC Chairman Ziaul Haque Khondker and placed their demands to him.
They said regulator's intervention led to a sharp decline in the prices of each and every mutual fund during the last few weeks that resulted in huge losses to them.
“If we now bear the losses caused by SEC's move, we would lose everything,” MA Bashar Dablu, the forum's convener, pointed out during the meeting with the SEC chief.
The lifting of SEC restrictions can save their capital, Dablu said.
The SEC chief assured the investors of considering their demands.
The market regulator on December 17 set new criteria for margin loans for mutual funds after about two months of suspension. The regulator said mutual funds must trade in a limited range to qualify for margin loans.
The funds that will trade 7.5 percent higher than their latest NAV (net asset value) will not qualify for the loans. It means if a mutual fund has Tk 100 in NAV per unit and trades only up to Tk 107.50 (7.5 percent higher than NAV), margin loans can be sanctioned for the fund.
Later on December 23, the SEC announced that mutual funds having no maturity period would have to pull out of the market by December 2011.
The decisions took a heavy toll on the mutual fund sector.
The agitated investors told journalists that they would go for tougher movement such as 'hunger strike unto death', if the SEC does not meet their demands.
“We will have no other way but going for hunger strike unto death,” Dablu said.
The investors, who have investment in mutual funds, staged demonstration in front of both Dhaka Stock Exchange and Securities and Exchange Commission under the banner of 'Share Market Retail Investors Forum'.
They also met SEC Chairman Ziaul Haque Khondker and placed their demands to him.
They said regulator's intervention led to a sharp decline in the prices of each and every mutual fund during the last few weeks that resulted in huge losses to them.
“If we now bear the losses caused by SEC's move, we would lose everything,” MA Bashar Dablu, the forum's convener, pointed out during the meeting with the SEC chief.
The lifting of SEC restrictions can save their capital, Dablu said.
The SEC chief assured the investors of considering their demands.
The market regulator on December 17 set new criteria for margin loans for mutual funds after about two months of suspension. The regulator said mutual funds must trade in a limited range to qualify for margin loans.
The funds that will trade 7.5 percent higher than their latest NAV (net asset value) will not qualify for the loans. It means if a mutual fund has Tk 100 in NAV per unit and trades only up to Tk 107.50 (7.5 percent higher than NAV), margin loans can be sanctioned for the fund.
Later on December 23, the SEC announced that mutual funds having no maturity period would have to pull out of the market by December 2011.
The decisions took a heavy toll on the mutual fund sector.
The agitated investors told journalists that they would go for tougher movement such as 'hunger strike unto death', if the SEC does not meet their demands.
“We will have no other way but going for hunger strike unto death,” Dablu said.
DSE upbeat on 2010
Dhaka Stock Exchange, already encouraged by this year's performances, sees a more stronger and stable capital market in the coming year.
“The market performed well with some milestone achievements this year. We saw the much-hyped Grameenphone listing, highest single day turnover, record levels of market capitalisation and key indices, introduction of book building method and many more,” DSE President Rakibur Rahman told journalists yesterday.
“All these successes have added to the investors' confidence. If the trend continues next year and new companies list on the bourses, daily turnover may reach Tk 3,000 crore level by December 2010,” he said.
Rahman also requested the government to increase the flow of good shares to keep the trend by balancing demand and supply.
The government can get more return by offloading shares in such public sectors as hospitality, aviation, port and other services sectors, he said.
Rahman however criticised the government for its intervention in the market this year.
21 Dec 2009
DSE chief critical of regular SEC interference
Regular interference of theSecurities and Exchange Commission (SEC) creates a chance of misinterpretation in the capital market, DSE President Md. Rakibur Rahman said at an investors' awareness programme organised by Trust Bank in the city Monday.
"There should be no obligation for the merchant banks as they know well how to provide margin loans," the DSE president said.
"The government does not need to hold any road show abroad to create funds for infrastructure development. Non-resident Bangladeshis are waiting to invest in the country through the capital market," he added.
On the other hand, Professor Mohammad Musa, a teacher of the United International University said, "Directions relating to the capital market come from different authorities creating impatience among the investors."
The Merchant Banking Division of the Trust Bank organised the programme to create awareness among the investors. Shah A Sarwar, head of the Merchant Banking Division, was also present at the programme.
"There should be no obligation for the merchant banks as they know well how to provide margin loans," the DSE president said.
"The government does not need to hold any road show abroad to create funds for infrastructure development. Non-resident Bangladeshis are waiting to invest in the country through the capital market," he added.
On the other hand, Professor Mohammad Musa, a teacher of the United International University said, "Directions relating to the capital market come from different authorities creating impatience among the investors."
The Merchant Banking Division of the Trust Bank organised the programme to create awareness among the investors. Shah A Sarwar, head of the Merchant Banking Division, was also present at the programme.
Dhaka stocks regain in heavily fluctuating mkt
Dhaka stocks regained in the heavily fluctuating market Monday as investors availed lower prices, after a three-day fall.
The market flipped between gain and loss in early trading as it lost 16 points within first twenty minutes and then recovered well in the next forty-five minutes gaining 42 points, before finishing in the positive zone.
The benchmark index DSE General Index (DGEN) gained 17.25 points or 0.40 per cent to close at 4329.49.
The broader DSE All Shares Price Index (DSI) moved up 15.17 points or 0.42 per cent to 3591.40 while the DSE-20 blue chip index added 5.34 points or 0.21 per cent to finish 2516.92.
"The investors bought shares availing lower prices, sending the market into the positive territory," said Fazlur Rahman, deputy managing director of AB Bank Ltd.
The market declined for the three-day straight sessions with biggest single-day fall in five months, making share prices within the grip of investors, he added.
"Rise in stock prices was needed to boost the investors' confidence which eroded for many reasons," said Fazlur Rahman.
Gainers took a strong lead over the losers as out of 235 issues traded, 155 advanced, 77 declined and three remained unchanged.
Shares worth Tk 6.38 billion --- lowest in three months --- were traded on the day, a decline of 15 per cent over the last session.
Most of the institutional investors remained inactive because of their year-end accounts closure, causing turnover to decline sharply, said a merchant banker.
Grameenphone, the most weighted issue in DSE, edged 0.41 per cent higher to Tk 170.80, reversing form its third consecutive-session losing streak.
The banking sector declined marginally and the non-banking financial institutions (NBFIs) sector advanced 1.92 per cent.
The mutual funds fell further 1.52 per cent while the pharmaceutical sector ended lower marginally. Energy sector gained 0.82 per cent while cement and tannery finished higher.
General and life insurers gained 0.54 per cent and 0.90 per cent respectively.
Beximco Ltd, the flagship company of leading industrial conglomerate Beximco Group, continued to retain top turnover position with shares worth Tk 541.46 million traded.
It was followed by Jamuna Oil, Lanka Bangla Finance, AB Bank, Beximco Pharma, Social Islami Bank Ltd (SIBL), Maksons Spinning, Titas Gas, Meghna Petroleum and Shahjalal Bank.
Alltex, Metro Spinning, GQ Ball Pen, Dacca Dyeing, BIFC, Jamuna Oil, Maksons Spinning, Desh Garments and BD Welding were the leading gainers.
The day's major losers were Alpha Tobacco, Savar Refractories, Gemini Sea Food, Sonali Aansh, ICB AMCL 1st Mutual Fund (MF), ICB 1st NRB MF, Grameen One MF and Grameen Scheme Two MF.
The market flipped between gain and loss in early trading as it lost 16 points within first twenty minutes and then recovered well in the next forty-five minutes gaining 42 points, before finishing in the positive zone.
The benchmark index DSE General Index (DGEN) gained 17.25 points or 0.40 per cent to close at 4329.49.
The broader DSE All Shares Price Index (DSI) moved up 15.17 points or 0.42 per cent to 3591.40 while the DSE-20 blue chip index added 5.34 points or 0.21 per cent to finish 2516.92.
"The investors bought shares availing lower prices, sending the market into the positive territory," said Fazlur Rahman, deputy managing director of AB Bank Ltd.
The market declined for the three-day straight sessions with biggest single-day fall in five months, making share prices within the grip of investors, he added.
"Rise in stock prices was needed to boost the investors' confidence which eroded for many reasons," said Fazlur Rahman.
Gainers took a strong lead over the losers as out of 235 issues traded, 155 advanced, 77 declined and three remained unchanged.
Shares worth Tk 6.38 billion --- lowest in three months --- were traded on the day, a decline of 15 per cent over the last session.
Most of the institutional investors remained inactive because of their year-end accounts closure, causing turnover to decline sharply, said a merchant banker.
Grameenphone, the most weighted issue in DSE, edged 0.41 per cent higher to Tk 170.80, reversing form its third consecutive-session losing streak.
The banking sector declined marginally and the non-banking financial institutions (NBFIs) sector advanced 1.92 per cent.
The mutual funds fell further 1.52 per cent while the pharmaceutical sector ended lower marginally. Energy sector gained 0.82 per cent while cement and tannery finished higher.
General and life insurers gained 0.54 per cent and 0.90 per cent respectively.
Beximco Ltd, the flagship company of leading industrial conglomerate Beximco Group, continued to retain top turnover position with shares worth Tk 541.46 million traded.
It was followed by Jamuna Oil, Lanka Bangla Finance, AB Bank, Beximco Pharma, Social Islami Bank Ltd (SIBL), Maksons Spinning, Titas Gas, Meghna Petroleum and Shahjalal Bank.
Alltex, Metro Spinning, GQ Ball Pen, Dacca Dyeing, BIFC, Jamuna Oil, Maksons Spinning, Desh Garments and BD Welding were the leading gainers.
The day's major losers were Alpha Tobacco, Savar Refractories, Gemini Sea Food, Sonali Aansh, ICB AMCL 1st Mutual Fund (MF), ICB 1st NRB MF, Grameen One MF and Grameen Scheme Two MF.
SEC moves to discipline brokering
The stock market regulator has asked banks, other financial institutions and insurers to form separate subsidiaries to run brokerage and dealer activities.
The subsidiaries must be formed by March 31 next year, according to a decision taken by the Securities and Exchange Commission at a recent meeting.
“Brokerage activities have widened and so an institution may face problems running usual work and brokerage and dealer activities under the same management,” said Ziaul Haque Khondker, chairman of SEC.
Some 200 brokers and dealer are registered with Dhaka Stock Exchange: 32 run by banks, financial institutions and insurance companies.
Of the 32 brokerages, 16 are run by banks, while other financial institutions and insurance companies operate the rest.
The banks which have brokerages are: NCC Bank, Islami Bank, City Bank, Bangladesh Shilpa Bank, Bangladesh Commerce Bank, IFIC Bank, Dhaka Bank, Mutual Trust Bank, National Bank, Pubali Bank, Mercantile Bank, Shahjalal Islami Bank, Bank Asia, Premier Bank and AB Bank.
Some financial institutions already have separate brokerage houses. They are: Phoenix Securities, International Leasing and Financial Services, Equity Partners Securities, IDLC Securities, Green Delta Financial Services, ICB Securities Trading Company, LankaBangla Securities, SES Company and BLI Securities.
The other financial institutions and insurers with brokerage houses are Bangladesh Shilpa Rin Sangstha, Sadharan Bima Corporation, IIDFC and Popular Life Insurance.
In October, Bangladesh Bank directed commercial banks to form separate subsidiaries to operate merchant banking.
A bank will have to take permission from Bangladesh Bank to set up a subsidiary company for merchant banking. The banks -- already in merchant banking -- will have to turn their units into subsidiaries by January.
Lottery Draw of ICB provident & R N Spin
The IPO lottery draws of ICB Employees Provident Mutual Fund One: Scheme One and R N Spinning Mills Limited will be held today (Monday) and December 24 respectively, issue managers of the companies said.
The IPO lottery draw of ICB Employees Provident Mutual Fund One: Scheme One will take place at Bangabandhu International Conference Centre in the city at 10.00 am. The issue manager also said that time and place of distributing refund warrants will be announced in the newspapers.
The IPO subscription of the mutual fund started on November 22 and closed on November 26. The subscription was opened up to December 5 for non-resident Bangladeshis.
ICB Asset Management Company Limited is the issue manager of ICB Employees Provident Mutual Fund One: Scheme One.
On the other hand, the IPO lottery draw of R N Spinning Mills Limited will be held at Bashundhara Convention Centre at 10.00 am and its refund warrants will be distributed from December 27, which will also be announced in the newspapers, the issue manager said.
The subscription of the company started on November 22 and closed on November 26. For Non-resident Bangladeshis the subscription was opened up to December 5.
The IPO lottery draw of ICB Employees Provident Mutual Fund One: Scheme One will take place at Bangabandhu International Conference Centre in the city at 10.00 am. The issue manager also said that time and place of distributing refund warrants will be announced in the newspapers.
The IPO subscription of the mutual fund started on November 22 and closed on November 26. The subscription was opened up to December 5 for non-resident Bangladeshis.
ICB Asset Management Company Limited is the issue manager of ICB Employees Provident Mutual Fund One: Scheme One.
On the other hand, the IPO lottery draw of R N Spinning Mills Limited will be held at Bashundhara Convention Centre at 10.00 am and its refund warrants will be distributed from December 27, which will also be announced in the newspapers, the issue manager said.
The subscription of the company started on November 22 and closed on November 26. For Non-resident Bangladeshis the subscription was opened up to December 5.
Subscribe to:
Posts (Atom)
Posts
