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Top 10 turnover leaders grab 30.61pc of weekly market transaction

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Top 10 turnover leaders grab 30.61pc of weekly market transaction
Top 10 turnover leaders grabbed 30.61 per cent of the weekly market transaction on Dhaka Stock Exchange (DSE) following investors’ increased participations.

In last week, the companies posted a total turnover of Tk 386.24 million on the premier bourse DSE.

The companies contribution ranged between 1.85 per cent and 7.0 per cent in total market turnover.

Three of the top turnover leaders were also in the chart of top 10 gainers of the premier bourse DSE.

The companies are Bangladesh Building Systems, National Polymer Industries and Union Bank.

During the week, the total turnover was Tk 64.29 billion of which 30.61 per cent came from transactions of the shares of top companies.

Bangladesh Export Import Company topped the chart of top turnover leaders with a value of Tk 4.50 billion. The company grabbed 7.0 per cent of the weekly market turnover.

During the week, the company’s share price advanced 1.56 per cent and closed at Tk 151.10 each on Thursday.

Bangladesh Shipping Corporation posted a turnover of Tk 2.97 billion and captured 4.62 per cent of the weekly market turnover.

The company’s share price advanced 2.67 per cent in last week and closed at Tk 134.80 each on Thursday.

Union Bank grabbed 2.87 per cent of the weekly market turnover after featuring a value of Tk 1.84 billion.

The company’s share price rose 15.70 per cent in five sessions and closed at Tk 14 each on Thursday.

Orion Pharma posted a turnover of Tk 1.77 billion in last week and captured 2.78 per cent of the weekly market transaction.

During the week, the company’s share price declined 1.98 per cent and closed at Tk 103.90 each on Thursday.

The share price of LafargeHolcim Bangladesh advanced 3.59 per cent in last week and closed at Tk 78 each.

During the week, the company posted a transaction of Tk 1.77 billion and grabbed 2.75 per cent of the total market turnover.

The share price of Bangladesh Building Systems jumped 37.27 per cent in last week and closed at Tk 30.20 each on Thursday.

The company featured a total turnover of Tk 1.61 billion and captured 2.50 per cent of the weekly market transaction.

In last week, RAK Ceramics (Bangladesh) posted a turnover of Tk 1.44 billion followed by Queen South Textile Mills Tk 1.31 billion, National Polymer Industries Tk 1.25 billion and Power Grid Company of Bangladesh Tk 1.19 billion.

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Minori Bangladesh enters into Fu-Wang Foods’ board.

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BSEC holds meeting with market intermediaries today
BSEC holds meeting with market intermediaries today

Minori Bangladesh enters into Fu-Wang Foods’ board.

Highlights

  • Minori acquired 7.61% Fu-Wang Foods’ stake with Tk10cr
  • Former directors will get Tk4 crore
  • Tk6 crore will be used to tackle Fu-Wang’s financial anomalies
  • Also, Minori will inject Tk20 crore fresh fund in Fu-Wang
  • Minori’s 3 new directors replaced Fu-Wang’s 3 directors

Minori Bangladesh — a subsidiary of the Japanese farming company Minori Co Ltd — has entered into the board of publicly listed Fu-Wang Foods by acquiring a 7.61% sponsor directors stake at the food and allied company.

The company nominated its three new directors – Miya Mamun, Md Afzal Hossain, and Sidratul Mahabub Hasan – in Fu-Wang’s board who will replace the food company’s existing Managing Director Arif Ahmed Chowdhury and Directors Afsana Tarannum, and Lubaba Tabassum.

The Bangladesh Securities and Exchange Commission (BSEC) approved the acquisition in January this year.

According to sources, the acquisition cost Minori Tk10 crore. Of the amount, Fu-Wang’s former directors will get Tk4 crore, and Tk6 crore will be invested in the company to deal with the financial anomalies regarding its inter-party transaction with its subsidiary.

In addition, Minori will inject a fresh investment of Tk20 crore to run Fu-Wang Foods.

Md Afzal Hossain, one of the new directors in the company, told the Business Standard, “Fu-Wang Foods has good potential, but it needs proper management.”

“After acquiring the company, technical and qualitative changes will be made to make it better.”

“As per investment plan, the monthly turnover of the company will be increased to Tk15-20 crore, which is currently around Tk9-10 crore, and we will invest as much as it needs to increase this turnover,” he added.

Founded in 1997, Fu-Wang Foods Limited was fully owned by foreign investors who wanted to do business in the food processing industry in Bangladesh.

It got listed on the stock exchanges in 2000. But later, the foreign investors sold the company to local investors.

Arif Ahmed Chowdhury has been the managing director since then, and his family owns 8.75% shares of the company.

Since its inception, the company has had confectionery items: cakes, bread, biscuits, toasts, snacks, and instant noodles.

According to sources, Fu-Wang Foods has a significant portion of the market share in the industry and also has good growth potential.

Due to a lack of proper management, the company fell into crisis and non-compliance with the securities laws and rules.

Seeing Fu-Wang’s huge potential, Minori Bangladesh decided to invest in the company.

Earlier, Minori had acquired a stake in another listed firm – Emerald Oil – and invested around Tk50 crore separately.

Global Islami Bank wants to go public for Tk425cr.

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Global Islami Bank wants to go public for Tk425cr.

Global Islami Bank Ltd, a fourth-generation commercial bank, has applied to the securities regulator to raise Tk425 crore through an initial public offering (IPO).

The bank applied to the Bangladesh Securities and Exchange Commission (BSEC) last week to issue shares at a face value of Tk10 under the fixed price method.

The private sector lender will invest Tk100 crore in small and medium enterprises (SMEs) considering the ample growth opportunity and mounting financing needs of the SMEs.

Besides, the bank will also invest Tk268.5 crore in government securities and bonds as secured investment.

Prime Bank Investment Limited and LankaBangla Investments Limited will be the issue managers for the Global Islami Bank’s IPO.

According to sources, the bank made a profit of Tk98.54 crore after tax and provisions, while its earnings per share (EPS) stood at Tk1.91 till 30 September 2021.

During the period, its net investment income was Tk366 crore.

The return on equity of the bank was 13.95%, while its return on assets was 0.79% till September 2021.

The bank’s classified investment was 2.15% of its total investment as of 30 September 2021.

Global Islami Bank, a full-fledged Islamic Shariah-based commercial bank, started operation on 23 October 2013.

Its authorised capital is Tk2,000 crore and its paid-up capital is Tk515.42 crore.

According to its prospectus, the bank is operating 86 branches, 72 sub-branches, and 91 ATM Booths across the country.

As per the licensing conditions, the bank was supposed to go public within three years of starting operation. When the bank failed to meet the deadline, it got a time extension till February 2022.

Md Manjur Hossain, secretary of the bank, said it has taken the initiative to offload shares according to a prior plan to comply with the Bangladesh bank rules.

Last year, the commission approved a Tk100 crore IPO for South Bangla Agriculture and Commerce (SBAC) Bank and Tk428 crore IPO for Union Bank.

Union Insurance shares rocket 300pc sans PSI

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Union Insurance shares rocket 300pc sans PSI

The stock price of newly listed Union Insurance Company has kept rising ‘abnormally’ since its trading debut although there is no undisclosed price sensitive information (PSI).In the last 14 trading days since its debut, the non-life insurer saw its share price jump more than 300 per cent or Tk 30.90 each riding on speculation and ‘irrational hype’ among investors.

On Thursday, the company’s share price closed at Tk 40.90 on the Dhaka Stock Exchange (DSE). Its issue price was Tk 10 each.

This ‘abnormal’ price hike prompted the DSE to serve a show-cause notice on the company on February 2.

In response, the insurer, however, informed the DSE on Thursday that there is no undisclosed price sensitive information behind the recent unusual price hike.

The general insurer would make it to the top gainers’ list almost every day since its trading debut on January 16.

Regular circuit-breakers also applied to the newly listed company, meaning the price of share could not rise above 10 per cent or fall below 10 per cent in a single day.

Market analysts said the investors continued to show their appetite for the new issue as short-term speculation created an ‘irrational hype’ among investors since its debut.

Most of the initial public offering (IPO) shareholders were unwilling to sell their stakes hoping for a higher profit in the future, according to a merchant banker.

Each general investor received a minimum 29 IPO shares of Union Insurance against an application of Tk 10,000 each on a pro-rata basis.

However, an analyst said, investors are blindly chasing its stock without conducting any proper analysis, as they see continuous rise in values.

“If this stock faces correction, general investors will be the ultimate losers, which will dent their confidence,” he said.

He pointed out that some influential investors try to manipulate the prices of shares of many companies by spreading rumours.

The investors should be careful about buying overvalued stocks to avoid any misfortune, he said.

Union Insurance raised a fund worth Tk 193.60 million from the capital market by issuing over 19.36 million ordinary shares at an offer price of Tk 10 per share under the fixed price method.

The IPO proceeds will be invested in fixed deposit receipts (FDR), stock market investment, purchase of a floor space and IPO-related expenses.

The company has posted a 59 per cent growth in profit to Tk 42.99 million in nine months from January to September 2021, compared to the same period a year earlier.

The company’s post-IPO earnings per share (EPS) stood at Tk 0.89 for January-September 2021, as against basic EPS of Tk 0.93 for the same period of the previous year.

The company’s authorised capital is Tk 1.0 billion and paid-up capital is Tk 484.02 million while total number of securities is 48.40 million.

Sponsor-directors own 46.54 per cent stake in the company while institutional investors 8.50 per cent and the general public 44.96 per cent as on December 31, 2020 (year-end), the DSE data showed.

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Stocks flat as investors remain hesitan

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Stocks flat as investors remain hesitan

Stocks ended almost flat in the outgoing week, as cautious investors opted to book profit after some companies reported lower-than-expected quarterly earnings.

The week featured five trading days as usual — the first two days saw massive drop while the market pared the losses in the last three sessions.

Week on week, DSEX, the prime index of Dhaka Stock Exchange, went down by 4.03 points or 0.06 per cent to settle at 7,023. It had lost 78.14 points in the previous week.

Market analysts said the risk-averse investors booked profit on sector-wise stocks in the first two days while the bargain hunters showed their buying appetite in the later part of the week.

Rising coronavirus infections and ongoing corporate earnings declaration prompted the nervous investors to book profits earlier in the week, according to a leading broker.

However, investors went on a buying binge in the later part of the week on stocks that posted higher-than-expected quarterly earnings, he said.

The market witnessed mixed performances as investors sought to rebalance their portfolios based on earnings declarations while a section of investors went for profit-booking, commented EBL Securities.

Although the government has extended the Covid-19 curbs to February 21, strong earnings posted by the listed companies largely eased the investors’ tension, said the stockbroker.

Meanwhile, the bargain hunters opted for shares of their preferred company at a lucrative price, mostly based on the latest financial updates or the anticipated ones, according to International Leasing Securities.

The stockbroker noted that the investors were mostly active on the engineering sector stocks due to the latest quarterly earnings’ surge of many stocks.

A section of investors also rebalanced their portfolios based on quarterly earning declarations during the week.

More than 150 listed companies published their quarterly earnings in the outgoing week and most of them reported extraordinary growth.

During this week, the DS30 index, comprising blue chips, also shed 10 points to finish at 2,592. However, the DSE Shariah Index (DSES) advanced 4.27 points to close at 1,504.

The week’s total turnover stood at Tk 64.28 billion on the prime bourse which was Tk 61.49 billion in the week before.

The daily turnover averaged out at Tk 12.85 billion on the country’s premier bourse, which was nearly 5.0 per cent higher than the previous week’s average of Tk 12.29 billion.

Market capitalisation of the DSE also fell slightly to Tk 5,621 billion on Thursday, from Tk 5,629 billion in the week before.

Major sectors showed mixed performances. The food sector saw the highest correction of 1.0 per cent, followed by power (0.70 per cent), and financial institutions (0.40 per cent).

On the other hand, cement, engineering, telecom, banking and pharma gained 2.10 per cent, 0.80 per cent, 0.70 per cent, 0.30 per cent and 0.10 per cent respectively.

Of the 388 issues traded, 184 advanced, 166 declined and 38 issues remained unchanged on the DSE trading floor.

Beximco, which lost 1.56 per cent, was the most traded stocks with shares worth Tk 4.50 billion changing hands, followed by Bangladesh Shipping Corporation (Tk 2.97 billion), Union Bank (Tk 1.84 billion), Orion Pharma (Tk 1.78 billion) and LafargeHolcim (Tk 1.77 billion).

Newly listed Union Insurance was the top gainer, posting a 59.77 per cent gain, while Samorita Hospital was the worst loser, shedding 17.78 per cent.

The Chittagong Stock Exchange (CSE) also ended slightly lower, with the CSE All Share Price Index (CASPI) shedding 10 points to settle at 20,576 while it’s Selective Categories Index (CSCX) losing 7.0 points to close at 12,359.

Of the issues traded, 162 advanced, 154 declined and 33 remained unchanged on the CSE trading floor.

The port city’s bourse traded 93.51 million shares and mutual fund units with turnover value of Tk 2.35 billion during the week.

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Q2 Price Sensitive Information of ALIF MANUFACTURING COMPANY LIMITED.

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Q2 Price Sensitive Information of ALIF MANUFACTURING COMPANY LIMITED.

PBC News

Banking issues surge as stocks stay positive.

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Banking issues surge as stocks stay positive.

The stock market edged higher on Thursday, maintaining the winning streak for the third straight session, as investors showed buying interest in the banking sector issues.

Market analysts said the investors showed their buying interest in banking sector stocks ahead of their year-end dividend declarations as many banking issues are still lucrative.

Share prices of 27 banks closed higher, out of 33 listed banks with the banking sector posting the highest gain of 1.10 per cent.

Price appreciation of several banks such as Union Bank, NRB Commercial Bank, IFIC Bank, City Bank, Social Islami Bank and South Bangla Agriculture & Commerce Bank helped the market index close in green terrain, according to a merchant banker.

The newly listed Union Bank share price surged by 9.38 per cent to close at Tk 14 each on Thursday, snapping the previous few days’ losing streak.

The market started on a positive trend, but fell sharply in the mid-session. However, late hours’ buying spree helped the index close slightly higher.

DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), went up by 6.76 points or 0.09 per cent to settle at 7,023. The key index added around 97 points in the past three trading days.

The DSE Shariah Index also saw a fractional gain of 0.25 point to close at 1,504. However, the DS30 index, comprising blue chips, shed 0.42 points to finish at 2,592.

Turnover, an important indicator of the market, stood at Tk 12.61 billion, which was 0.40 per cent lower than the previous day’s tally of Tk 12.66 billion.

Union Bank, NRB Commercial Bank, Walton, British American Tobacco and IFIC Bank, jointly contributed over 15 points rise to the DSEX, according to amarstock.com, a market data analyst.

Stocks saw bumpy rides as the prime bourse witnessed mixed trading while bargain hunters showed their buying interest in sector-wise stocks, keeping the market index in the positive terrain, according to EBL Securities.

Major sectors posted mixed performances. Banking sector witnessed the highest gain of 1.10 per cent, followed by general insurance (0.70 per cent), food (0.20 per cent), financial institutions (0.10 per cent).

On the other hand, life insurance companies faced the highest correction of 2.40 per cent, followed by cement with 1.0 per cent and power 0.80 per cent.

Losers, however, took a modest lead over the gainers, as out of 380 issues traded, 172 declined, 166 advanced and 42 issues remained unchanged on the DSE trading floor.

A total number of 229,453 trades were executed in the day’s session with a trading volume of 296.63 million shares and mutual fund units.

The market capitalisation of the DSE stood at Tk 5,621 billion on Thursday, up from the previous day’s mark of Tk 5,620 billion.

Beximco – the flagship company of Beximco Group- topped the turnover chart with shares worth Tk 859 million changing hands, followed by Bangladesh Building Systems (Tk 455 million), Union Bank (Tk 411 million), Fortune Shoes (Tk 386 million) and BATBC (Tk 319 million).

Nahee Aluminum Composite Planet was the day’s top gainer, posting a gain of 9.95 per cent while RAK Ceramics was the worst loser, losing 6.45 per cent.

The Chittagong Stock Exchange also edged higher with its All Shares Price Index (CASPI) rising 10.12 points to close at 20,576 while the Selective Categories Index CSCX gaining 6.0 points to close at 12,359.

Of the issues traded, 135 declined, 125 advanced and 42 issues remained unchanged on the CSE.

The port-city bourse traded 17.37 million shares and mutual fund units with turnover value of Tk 406 million.

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BSEC rejects Metro Spinning’s 5% stock dividend proposal.

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BSEC holds meeting with market intermediaries today
BSEC holds meeting with market intermediaries today

BSEC rejects Metro Spinning’s 5% stock dividend proposal.

The Bangladesh Securities and Exchange Commission (BSEC) has rejected a 5% stock dividend announced by Metro Spinning Ltd for the financial year that ended in June 2021.

The board of the listed spinner recommended the dividend in October 2021 and then its shareholders approved the plan in its last annual general meeting on December 29.

The record date for entitlement of stock dividend was supposed to be notified later after getting the needed special approval from the BSEC.

The Bangladesh Securities and Exchange Commission (BSEC) has rejected a 5% stock dividend announced by Metro Spinning Ltd for the financial year that ended in June 2021.The board of the listed spinner recommended the dividend in October 2021 and then its shareholders approved the plan in its last annual general meeting on December 29.The record date for entitlement of stock dividend was supposed to be notified later after getting the needed special approval from the BSEC.

The company mentioned a planned BMRE (Balancing, Modernisation, Rehabilitation and Expansion) project as the reason behind the planned paid-up capital enhancement through stock dividends.A BSEC official told The Business Standard that the justification of the company’s plan did not satisfy the regulator.The development has drawn a mixed reaction among stock investors as they might end up in no form of dividends for the 2020-21 fiscal year.Earlier on 31August 2021, the BSEC issued a notification saying that the companies which are non-performing and have no good dividend history must take consent for raising capital through issuing bonus shares.It came on the backdrop of a long trend of irresponsible stock dividends by listed companies over years only to retain their A or B category status in the bourses.The regulator and the government in 2019 began putting some bars on unnecessary or deceptive stock dividends.Experts say stock dividends do not need any real contribution by a company to their shareholders, while it needs the financial strength to pay cash dividends.They also say stock dividends only make sense when a company needs to retain its profits within the company forever with a view to use the capital for business expansion.The Finance Act 2019 imposed a tax on stock dividends that exceed cash dividends by a listed company for any year.  Later the BSEC came up with its tight rules for stock dividend last year.According to the notification, the issuer company of listed securities who has failed to declare at least at 10% cash dividend for a period of two consecutive years from the date of listing with the stock exchange or from the date of declaration of the last dividend after listing with any stock exchange, must take approval from BSEC regarding issuing bonus shares.Metro Spinning declared a 2% cash dividend for 2020, 2019 and 2017 while a 2% stock dividend for 2017.And it had to seek BSEC approval for the planned stock dividend for the 2020-21 financial year.The company has paid-up capital of Tk61.68 crore.The company has also reported earnings per share of Tk0.99 for the year that ended on 30 June 2021 as opposed to Tk0.08 in the previous financial year.Some other companies secured BSEC approval for their proposed stock dividends for the 2020-21 financial year, as they were not fit to directly issue stock dividends due to their track record.

Confidence Cement associate wins a 66MW power plant contract.

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Confidence Cement associate wins a 66MW power plant contract.

A consortium led by Confidence Power Holdings Limited has won the letter of intent from the Bangladesh Power Development Board to build, own and operate a 660 MW power plant at Mirsarai in the port city of Chattogram.

Confidence Power Holdings, in which listed cement manufacturer Confidence Cement owns 36% shares, owns 62% shares of the consortium, according to public disclosure by Confidence Cement.

Foreign technical partner GE Capital US Holdings Inc owns 20% of the consortium, while Confidence Power Ltd and Electropac Industries Ltd own a 9% stake each.

The approved gas or reliquefied natural gas-based combined cycle power plant will have a 22-year tenure from the date of commercial operation commencement.

Following the disclosure of the new project that would add to the Confidence Cement’s consolidated revenue and profits, its share price increased 4.9% to close at Tk127.5 on Thursday in the Dhaka Stock Exchange.

The cement company listed in 1995 entered the power generation business in the last decade and the power plants it directly or indirectly owns are making a significant contribution to the listed company’s annual revenue and profits.

RAK Ceramics sales, profits rebound.

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RAK Ceramics sales, profits rebound.

With the economy and construction gaining pace in 2021, RAK Ceramics (Bangladesh) Ltd has come back on the track of selling its market-leading construction tiles and sanitary ware.

The publicly-listed company posted Tk685 crore in consolidated annual sales for 2021, the highest since 2017, and 30% higher from the dented base of 2020.

With an improved factory level profitability, the company’s net profit after all taxes also rebounded to the highest since 2017.

“The revised and responsive business strategy helped the company improve the total sales, alongside better control of costs,” the company said in a statement.

The publicly-listed company posted Tk685 crore in consolidated annual sales for 2021, the highest since 2017, and 30% higher from the dented base of 2020
With the economy and construction gaining pace in 2021, RAK Ceramics (Bangladesh) Ltd has come back on the track of selling its market-leading construction tiles and sanitary ware.The publicly-listed company posted Tk685 crore in consolidated annual sales for 2021, the highest since 2017, and 30% higher from the dented base of 2020.With an improved factory level profitability, the company’s net profit after all taxes also rebounded to the highest since 2017.”The revised and responsive business strategy helped the company improve the total sales, alongside better control of costs,” the company said in a statement.Sadhan Kumar Dey, chief operating officer (COO) and chief financial officer (CFO) of RAK Ceramics Bangladesh, told The Business Standard, “The construction sector rebounded well in 2021 while our sales grew even better.”In the pandemic situation, the company had accomplished many of its factory maintenance and modernisation tasks that enabled it for a record high production in 2021.As soon as the market demand increased, it aggressively went for selling more.The company, which went into a slowdown after 2018, has been more generous to credit sales to its dealers in the pandemic situation, it said while explaining the reason behind less growth in its net operating cash flow compared to the growth in sales.”We provided our dealers with much more facilities and business convenience in 2021 than that by our competitors,” Sadhan Kumar Dey said.Since the first wave of Covid-19, the company’s costs increased, but it decided to offset the increased costs through more production and sales instead of raising prices of its ceramic products used in building construction, according to the COO.The company’s gross profit margin – the ratio of sales revenue and cost of production – improved to near 30% which was in decline since the end of 2018 and dropped to below 23% in 2020 as the 66-day nationwide shutdown had dragged the company down to a quarterly loss in the April-June period and a 59% drop in annual profit.A reduction in corporate tax by 250 basis points also helped the company book a higher net profit in 2021.Securing a 200% growth in the 2015-20 period, Bangladesh’s ceramics market grew to over Tk6,000 crore at the end of 2020, while the tiles and sanitary ware accounts for 75% of the annual market.Local factories are catering to 77% of the tiles market, 96% of the tableware market and 90% of the sanitary ware market, according to RAK’s 2020 annual report.RAK Ceramics Bangladesh posted Tk2.87 in earnings per share for 2021 against Tk1.36 in the previous year.Its shareholders are set to get Tk1.25 in cash dividends for the year against each share having a face value of Tk10 and a market value of Tk55.1 till Thursday at the Dhaka Stock Exchange.